What is an employee handbook?

•10 min read

If you're hiring, scaling, or simply want clarity across your team, an employee handbook is one of the most valuable documents you can create. But what exactly is it — and why does your company need one?

In this guide, we'll explain what an employee handbook is, why it matters, what to include, and how to get started creating yours.

What is an employee handbook?

An employee handbook is a centralized, written guide that outlines how your company works — from culture and values to policies, benefits, and day-to-day expectations. It helps new hires ramp up quickly, gives managers consistency, and protects the company by setting clear standards.

Think of it as the operating manual for working at your company. Modern teams treat it as a living document — easy to update and accessible to everyone.

Employee handbook vs. company handbook vs. staff handbook

You'll hear different terms for essentially the same document. Here's what they mean:

Employee handbook

Most common term. An employee handbook focuses specifically on policies and information for employees — covering everything from benefits and time off to workplace conduct and performance expectations.

Use this when: Your document is primarily focused on HR policies, employee benefits, and workplace rules.

Company handbook

Broader scope. A company handbook often includes everything in an employee handbook plus additional information about company mission, strategy, operational procedures, and sometimes content relevant to contractors, vendors, or partners.

Use this when: You're documenting company-wide information that goes beyond just employee policies — like company history, strategic vision, or operational guidelines that apply to everyone working with your organization.

Staff handbook

Common in UK/Europe. "Staff handbook" is essentially the British/European term for employee handbook. The content is typically the same, just different terminology based on regional language preferences.

Use this when: Your company is based in the UK, Europe, or Commonwealth countries where "staff" is more commonly used than "employees."

Which term should you use?

Honestly? It doesn't matter much. Choose the term that feels most natural for your company culture and location:

  • US companies: "Employee handbook" is most common
  • UK/European companies: "Staff handbook" is preferred
  • Broader scope: "Company handbook" if you're including more than just employee policies

The important part: The content matters more than the name. Regardless of what you call it, your handbook should clearly communicate policies, expectations, and culture to your team.

For simplicity, we'll use "employee handbook" throughout this guide, but everything applies equally to company handbooks and staff handbooks.

Why it matters

  • Clarity and alignment — Reduces confusion and accelerates onboarding.
  • Consistency — Ensures fair, predictable decision-making across teams.
  • Legal protection — Documents key policies and compliance requirements.
  • Culture — Reinforces values and expected behaviors.

Want to understand the full business case for creating a handbook? Read our in-depth guide on 7 reasons why you need an employee handbook, including cost savings, time savings, and legal protection.

What to include

For a detailed breakdown of sections, see our guide on what should be included in an employee handbook. At a high level, most handbooks cover:

  • Welcome and company overview
  • Employment policies (classification, schedules, time off, performance)
  • Benefits and compensation
  • Workplace guidelines (communication, tech, office procedures)
  • Legal and compliance (EEO, safety, confidentiality)

Want inspiration before you start? Explore employee handbook examples from companies like PostHog, GitLab, and Valve — and borrow the best ideas.

Quick FAQ

Is an employee handbook legally required? No in most regions, but many policies and disclosures are. A handbook helps centralize them.

How long should it be? As short as possible while still being complete. Link out to detailed policies.

PDF or web? Web wins for discoverability and updates. PDFs go stale. For a complete breakdown of format options, see our guide on digital employee handbooks.

What should I do first? Start by defining your purpose and gathering existing policies. Then check out our comprehensive guide below.

How to get started

Now that you understand what an employee handbook is and why it matters, you're ready to create one for your company.

📚 Ready for the full guide?

We've created a comprehensive, step-by-step guide that walks you through the entire process of creating an employee handbook from scratch — including templates, timelines, and common mistakes to avoid.

Read the complete guide: How to create an employee handbook →

The guide covers everything you need:

  • 8 detailed steps from planning to launch
  • What to gather before you start
  • How to structure your handbook
  • Writing tips and examples
  • Legal review checklist
  • Distribution and rollout strategies

Final Thoughts

An employee handbook is more than just a policy document — it's your company's operating manual, cultural guide, and legal foundation all in one. Whether you have 5 employees or 500, having a clear, accessible handbook helps everyone understand expectations and work together more effectively.

The key is to start with the basics, keep it focused on what employees actually need to know, and treat it as a living document that grows with your company.

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