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Does Your Employee Handbook Match Your HCM Platform?

Most employers know their employee handbook should be reviewed from time to time. Laws change, policies change and businesses grow.

One thing that gets overlooked is whether the handbook still matches the way the HCM platform is actually set up.

That can create problems pretty quickly. A policy can be written correctly and still cause confusion if payroll, timekeeping or PTO is doing something different.

PTO and Sick Leave

This is probably the easiest place to start.

Your handbook may explain how PTO or vacation is earned, whether time is accrued or frontloaded, whether there’s a cap, how carryover works and how employees request time off.

Now compare that to your HCM platform.

Is PTO accruing at the rate described in the handbook? Are caps and carryover rules set up correctly? Is sick leave being handled the way the policy says it should be?

You’d be surprised how often we see PTO accrual settings in payroll that don’t match what’s written in the employee handbook.

Timekeeping

Timekeeping is another common crossover point.

The handbook may address recording hours, attendance, schedules or timecard expectations. The system is where those expectations actually get carried out.

Are employees clocking in the way the policy describes? Are managers approving timecards? Are schedules set up correctly?

The handbook doesn’t need to become a software manual, but the process should match the policy.

Overtime

Overtime is another area worth checking.

If the handbook explains when overtime is allowed, how it should be approved or how employees are expected to report it, the timekeeping and payroll setup should support that.

It’s a good idea to confirm that overtime rules are being calculated correctly and that the actual process matches what employees have been told.

Meal and Rest Breaks

Meal and rest break policies can also connect directly to timekeeping.

If the handbook explains employee responsibilities around meal periods or breaks, make sure the timekeeping setup supports the policy being used.

This can be especially important for employers with more complex state requirements.

Pay Schedules and Payroll Procedures

The handbook may also include pay schedules, deductions, withholdings and other payroll procedures.

This is another area where things can drift over time.

Has the company changed pay frequency? Have payroll deadlines changed? Does the handbook still describe the current process?

If employees are being told one thing, payroll should be doing the same thing.

Leaves of Absence

Leaves can touch several areas of the HCM platform at once.

The handbook may cover family, medical, military, disability or other types of leave.

At the same time, the system may be tracking employee status, unpaid time, benefit deductions or other leave-related information.

It’s worth making sure the written policy, payroll process and system setup all line up.

The Premier Perspective

Updating the employee handbook is important, but that’s only part of the job.

If the handbook says PTO accrues one way, the system should calculate it that way.

If employees are required to record time a certain way, the timekeeping platform should support it.

If the handbook lists a pay schedule, payroll should follow it.

The handbook explains the policy. The HCM platform helps put that policy into practice. When you review one, it makes sense to review the other.

If it’s been a while since you’ve compared the two, Premier HCM is happy to help.