National Clothesline

The weather is hot and humid and business is slow… what better time to curl up in your nice air-conditioned office and dig out that Personnel Manual (Policy Manual, Employee Handbook) you put together back in 19xx.

You remember it. You put a great deal of time and effort into creating it, had it typed up, maybe you had it printed, you passed it out to all your employees (who could not wait to read it!), and made them sign a statement saying they read it. Then, somewhere along the way you stopped using it and now you can’t even find a copy. Sound familiar?

Everyone has read about how important personnel manuals are and almost everyone has, at the very least, thought about putting one together.

About half of the drycleaners I have worked with have actually taken the time to complete a manual and have introduced it to existing and new employees. The majority of these drycleaners stopped using this very valuable management tool within 18 months of its introduction. Why? Because the person(s) who created the manual did not see it as their “daily operating bible.”

A company personnel manual must be created as a living, growing document that needs to be constantly interpreted and modified. As business conditions change the manual must change.

If you have a personnel manual that’s hiding in the bottom drawer of your desk, or one that you are using that has not been revised in a while, or you are just getting started, here are some tips on how to breathe some life into a few pages of printed paper.

Every good personnel manual begins with a Table of Contents which is followed by a Welcome Letter.

The welcome letter is your opportunity to set the tone for the entire manual.

A good way to start this letter is: “We are pleased to have you with us. We hope you find the work here interesting and rewarding, as do those of us who have been with the company for many years.”

Next give a brief history of the company — the number of years in business, the geographical area that you serve, and mention that the company exists to serve the drycleaning needs of the community.

Close this letter with a paragraph that says, for instance: “This booklet tells about our work, our working conditions and the benefits you receive as an employee of ABC Company. Please read it carefully and often. Remember, every job and the performance of every employee at ABC Company is very important to all the customers we serve.”

The welcome letter needs to be followed by an "important note" that states that this personnel manual is not an employment contract.

Here is a good way to state it: “The contents of this personnel manual are presented as a matter of information only. While ABC Company believes wholeheartedly in the plans, policies and procedures described herein, they are not conditions of employment. The right is reserved to modify, suspend, terminate, or change any or all procedures, in whole or in part, at any time, with or without notice. The language contained in this handbook is not intended to create, nor is it to be construed to constitute a contract between the company and any or all its employees.”

The next item in your personnel manual will be a paragraph entitled “Employee Benefits.”

This paragraph should read, for example: “Employee benefits are privileges provided by ABC Company to its employees. With the exception of Workers’ Compensation and Unemployment Compensation, they are not rights granted under the law. Benefits are subject to change at the discretion of ABC Company.”

The two main sections of the personnel manual are Benefits and Personnel Policy. In the Benefits section, the first thing you must do is decide what requirements an employee must meet before they are eligible for benefits.

The benefits in question are holiday pay, vacation pay, insurance benefits, other paid time off (personal days, sick days, death in the family), leave of absence eligibility and reimbursement for educational courses.

The first requirement that you must decide on is the length of continuous service or the probationary period for new hires. This can be 30, 60 or 90 days. Pick the one that fits your needs best.

The next requirement for benefits eligibility is based on the number of hours an employee is normally scheduled to work.

Some companies state that you must be a full-time employee to be eligible for benefits and that to be considered a full-time employee, your regular work schedule must be 30 hours per week.

Either way, benefits are tied to the number of hours a person normally works. The average number of hours required for benefit eligibility is thirty hours per week.

Consider the following definition: For the purpose of calculating employee benefits in this manual, full-time employees are defined as any person regularly scheduled to work 30 or more hours per week. Short time or temporary changes in work schedules will have no effect on this definition.

For example, a person who normally works less than 30 hours per week remains a part-time employee even though they occasionally, or temporarily, exceed this figure.

Conversely, an employee who is scheduled to normally work in excess of 30 hours per week remains a full-time employee even though they occasionally or temporarily work less hours per week. Only a permanent change in scheduled hours will affect the status of full and part-time workers.

Next you should list the holidays that you offer to full-time employees who have completed the probationary period.

At this time you will also state any other holiday pay eligibility requirements, such as requiring that the employee must work regularly scheduled shifts before and after the holiday to qualify for the holiday pay.

Now you will want to define how full-time employees earn vacation time; i.e., after 12 months of consecutive service all full-time employees will have earned five vacation days, after three years of continuous service ten vacation days, etc.

You may also want to state that the vacation dates will be allocated by seniority; that vacation benefits can not be accumulated; and that employees will not receive extra pay in lieu of taking a vacation.

Sick leave and personal paid time off vary from none to as many as an additional ten paid days off per year.

Somewhere in between the two extremes usually works well.

Your company policy on maternity leave must be stated in your personnel manual. The details of this policy are dictated by your state, so obtain a copy from your state Labor Department and condense it for this document.

Health insurance is a benefit that every company should be able to offer employees on a co-pay basis.

If your company is not in a position to offer health insurance benefits at this time, you are not alone. Being able to offer your employees health insurance benefits should be a part of your short-term company goals.

The next section of your personnel manual will cover personnel policies. This section outlines company procedures and policies for hours of work, coffee and lunch breaks, overtime pay, time cards, pay periods, discrimination statement, a statement about annual performance reviews and a set of company rules and regulations.

Very important: Your statement about annual performance reviews must state the following: “Performance reviews will be conducted by the employee’s immediate supervisor at least once a year. Performance reviews will not automatically result in pay adjustments. Such adjustments relate both to performance and current budget restraints.”

We all know that working in a drycleaning plant is hot and demanding and that the rewards are few. That, however, does not give us, as managers, the luxury of not doing our jobs in terms of requiring good attendance, good quality work, meeting production standards and providing excellent customer service.

All employees must be consistently held to the same standards at all times.

To manage consistently and fairly requires a great deal of self control and self discipline. By documenting a set of company rules and regulations with which to manage by, you have created an excellent management tool. Use it… use it wisely and consistently!

The company rules and regulations should be at the end of the personnel manual and they need to spell out the disciplinary procedures that are associated with each rule. Most everyone neglects this part of the manual because it is the hardest and most unpleasant part of managing people.

Group I

First offense: Verbal warning.

Second offense: Written warning.

Third offense: Three-day suspension, without pay.

Fourth offense: Discharge.

Rule #1: Excessive absenteeism and/or lateness.

Rule #2: Failure to follow the instructions of a supervisor.

Group II

First offense: Written warning.

Second offense: Three-day suspension without pay.

Third offense : Discharge.

Rule #1: Horseplay or disruptive behavior.

Rule #2: Leaving company premises without permission during work hours.

Group III

First offense: Immediate discharge

Rule #1: Stealing from a customer, a co-worker, or the company.

Rule #2: Insubordination.

Note: Your company must also develop a policy concerning the use of cell phones at work.

Talking on a cell phone in a production area is a major safety issue and should not be permitted. Talking on a cell phone while waiting on customers shows a total disregard and lack of respect and should not be permitted. Cell phones have no place in the work environment except during break time or lunch — never while working.

In the game of business, the more you know the better you can play the game.