Does My Small Business Need an Employee Handbook?

Are you thinking about hiring your first employees? You may be wondering, do I really need an employee handbook if my business only has a couple of employees?

We asked the Director of People & Culture at W.S. Badger Balm, Emily Hall Warren, the same question. Her answer? Technically no, but practically, yes.

You’re not legally required to have a full employee handbook when your team is small. However, even a simple, 5–8 page “mini handbook” can save you time, reduce misunderstandings, and protect your business.

Why is an Employee Handbook Valuable?

  1. It sets clear expectations. A short handbook outlines basics like work hours, pay schedules, time‑off rules, and communication expectations. This prevents the dreaded “Oh, I didn’t know” conversations later.
  2. It makes compliance easier. Even tiny businesses must follow labor laws. A handbook is a simple way to share required policies such as anti‑harassment, nondiscrimination, safety guidance, and your at‑will employment statement.
  3. It creates consistency. Instead of explaining policies verbally, and differently each time, you can give every new hire the same information in writing.
  4. It supports your culture. Your values, communication style, and expectations shape your small team’s culture from day one. A mini handbook puts that foundation in writing.

What Does a Mini Handbook Look Like?

You don’t need a massive corporate manual. You do need something short, clear, and easy to update. Think of it as a simple, practical tool that grows with your business. It might looks something like this:

  • Welcome message
  • At‑will statement
  • Basic workplace policies
  • Work hours & pay schedule
  • Time‑off policy
  • Code of conduct
  • Anti-harassment / discrimination policy
  • Safety and reporting procedures

Still nervous about diving in? Book a coaching session with Emily to ask questions, outline, and review your mini handbook.