An important reason to create an employee handbook is to document the employer,s expectations. Employees want to be successful; they are eager to know what is expected of them and how they can improve. A good handbook describes expected performance and resulting reward in addition to clarifying the employer,s expectations regarding work hours, dress codes, and leaves, etc.

The process of creating a handbook also helps employers improve their leadership, first by thinking through and choosing which policies are useful and practical in their specific situation. When concrete policies are established, employers can better manage employees because objectives for each position have been examined, benefits have been considered and perhaps retooled, and personnel policies are in place before contentious issues arise.