Employee Handbook

The main difference between the two is the intended audience. The Employee Handbook is written for the company's employees to inform them of the basic policies. On the other hand, the Company Policy Manual is written for the managers and supervisors. It’s usually a more detailed manual that contains information on how to implement certain policies. The Company Policy Manual may have federal and state law references related to any listed policy.

The corporate culture is the overall values and governing style of a company. There is more than one type of corporate culture. For example, the team first culture focuses on cooperation, communication, and open feedback. The horizontal culture is more common in smaller companies that have a looser idea of hierarchy. Also, the conventional corporate culture corresponds to a firm hierarchy and is commonly observed in banks and law firms.

The most important differentiation is that the Employment Contract is a legally binding document. Another crucial difference is that the Employment Contract is unique to every employee and the handbook applies to everyone the same. However, the Employment Contract will not contain all the guidelines and policies mentioned in the handbook. The employer can update the Employee Handbook without previously discussing it with employees but needs to send out the revised version.

Some companies choose to include a mission statement and vision statement in the Employee Handbook. A mission statement explains why the company came into being in the first place and its general purpose and goals. A vision statement is a mental image of how the company intends to accomplish those goals. It's a more strategic outline of what employees can expect while working in a company.

Like the mission and vision statements, the value proposition is often a part of the Employee Handbook. The main purpose is to act as a sort of moral compass for the employees. It's also an internal leadership framework that depicts the code of ethics expected of all employees in the company.