Are Employee Handbooks Essential for Nonprofit Organizations?

Tips to create a nonprofit employee handbook.

Any nonprofit organization with more than one or two employees should consider creating a written employee handbook. Generally, this should outline non-contractual employment terms and working conditions. Having an employee handbook ensures everyone in the organization is operating from the same set of procedures. Additionally, it’s usually required as part of your directors & officers liability (D&O) and employment practices liability insurance.

While it’s impossible to outline every aspect of what your particular handbook should include, below are a few general policies to include. If you are working with a nonprofit insurance expert then they should be able to help you access professional resources to create your employee handbook.

General Policies

  • Dress code – Your firm may require a dress code for safety or professional reasons.
  • Ethical Practices and Honesty – Your organization should require employees to conduct business affairs in compliances and applicable laws and regulations.
  • Health and Wellness – Outline employee benefits, vacations, tardy policies, time off, sick days, and any employee health plan. 

Employment Policies

  • Job Descriptions – Each position should have an outlined job description.
  • Introductory Period – This section of the handbook should state if there is a 90 or 120 day period in which the employment relationship may end for any reason.
  • Equal Employment Opportunity – All handbooks should have a statement regarding the organization willingness to hire and promote without regard to race, color, sex, age, disability, religion, national origin, marital status, sexual orientation, ancestry, or status as a veteran.
  • Performance Evaluation – Every employee should be given an annual performance evaluation. Employee performance should be measured based on objective, job-related criteria developed by management and communicated in advance. Performance evaluations are meant to be an ongoing process and should not be confined to the formal review process.
  • Anti-Harassment Policy – Harassment is defined as any conduct that substantially interferes with an employee’s work duties or creates an intimidating, hostile, or offensive work environment. This would include, but is not limited to: threatening or offensive conduct directed toward a person’s gender, race, age, disability, religion, national origin, veteran status, gender orientation, and current or future military status.
  • Safety Rules and Regulations – A general overview of the safety program should be included. The organization should have a separate, detailed safety manual.

To protect the livelihood of your organization and employees, ensure you have the right protection. Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. Make sure that your nonprofit is properly covered. We will work with you to ensure you are getting the most out of your coverage.