Michael Rogers, vice president communications for the Small Business Association of Michigan, interviews Michael Burns, of the American Society of Employers, to learn more about what needs to go in your employee handbook. An effective employee handbook is critical in today's legally-charged employment atmosphere.

A handbook not only introduces your company and its employment and business philosophy to your employees, but also is an effective communication tool that provides information on company policies, procedures, and compensation programs. Without a handbook, unwritten and uncommunicated policies can lead to inconsistent and arbitrary treatment of employees, which may trigger employment discrimination complaints or increase the chances of labor organizing.