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9 steps to write a detailed employee handbook

9 steps to write a detailed employee handbook

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Arpit Mishra
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February 22, 2018
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6 min read
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An employee handbook, as the name suggests, is a handy communication tool that informs and creates awareness about an organization’s guidelines and policies and gives insight into the company’s vision and culture.

Since Indian labor and employment laws are considered to be one of the most complex ones in the world, most companies use an employee handbook as a convenient measure to ensure compliance with these laws.

While most organizations opt for the tried-and-tested-route when it comes to drafting an employee handbook, some companies breathe inspiration and creativity into theirs.

A poorly drafted employee handbook is also said to be an effective sedative in the treatment of insomnia (right alongside my 9th-grade history textbook)!

So, let us focus on how not to create such a potent draught and instead try and make it an effective and beneficial communication tool!

9 steps to write a detailed employee handbook –

1. The disclaimer

A disclaimer is what defines the nature of the employee handbook and should at the very outset state that the employee handbook is not a contract of employment.

Not including this critical point in the handbook could leave your organization vulnerable to lawsuits by terminated employees.

2. Introduction and a welcome note

Most employee handbooks start with the customary “introduction and welcome note” that introduces employees to the company’s principles, goals, and core values.

An important point to remember while drafting this is to avoid figurative language, for instance, referring to the organization as a family, as it could imply indefinite employment!

Instead, provide them with a general overview of the work environment and hierarchy.

Another critical point to include is regarding the at-will employment relationship which states that the employee can be terminated at will anytime with or without notice by the employer or employee.

Valve, a gaming software company’s employee handbookis an excellent example of one that communicates its work culture, a brief description of how it started and its lack of hierarchy in an upbeat, empathetic yet effective manner.

This ensures an effective communication of what the employee can expect from the company and its management and what is expected of them.

3. Company’s mission statement

A successful business is one where all its employees are aligned with the company’s vision and goals and work toward bringing the same to fruition.

The first step toward this is to state in lucid terms what these goals are so that it imparts a sense of purpose and duty to the employee.

Brimming with personality and written in a conversational style is the much talked about handbook of Disqus, an online blog comment hosting service company.

The Disqus handbook covers everything from the mission statement, product overview, and milestones to their favorite phrases and life at Disqus, and all done in an engaging and lighthearted manner.

4. Sexual harassment and anti-discrimination policies

It is important to expressly state in your handbook your company’s zero-tolerance policy toward harassment or discrimination of any kind.

It is advisable to take professional legal advice while drafting this section since it requires you to define harassment in the workplace and how to identify it.

The employee must also be made aware of the contact details of the person to whom such an incident can be reported.

The Infosys employee handbookhas a detailed section dedicated to its harassment and discriminatory policies where they appeal to everyone to respect each other to create a safe workplace.

5. Leave policies

Most companies these days are quite accommodating of their employees’ leave requirements.

Whether you have a strict policy regarding it or are more relaxed when it comes to your employees taking time off, clearly mention the kinds of leave permissible such as vacations, sick days, maternity leave, etc.

Do not neglect to disclose any restrictions on leaves of absence such as termination of employment or revoking of employee benefits due to excessive time off.

It is important to mention a timeframe within which employees can apply for vacation or other leaves.

Motley Fool’shas a rather straightforward “take what you need” attitude with regard to its vacation policy as clearly mentioned in their handbook.

6. Disciplinary policies

A company’s employee handbook is a valuable document not only when it comes to introducing the employee to the organization’s work culture and important policies, but also as a deterrent to inappropriate and unprofessional behavior.

Clearly define what constitutes employee misconduct while explaining the consequences of such actions. It has to be made clear, however, that inappropriate actions/behavior would be judged on a case-by-case basis by the organization.

The language used in explaining such sensitive topics must never be threatening as that would lead the employees to be in a constant state of fear of being disproportionately punished.

An important point to be included under this section is a disclaimer that states “or any other behavior proven to be detrimental and harmful to the company” so that the misconduct mentioned are not limited to only the ones listed.

7. Social networking and blogging

With social media pervading our everyday lives, it is crucial to specify what the organization’s policies are regarding accessing social media account while at work.

If this is strictly prohibited, then mention that in the handbook along with the disciplinary action that accompanies such insubordination.

There should be strict rules regarding posting of confidential or proprietary company information and photos of colleagues taken at the workplace.

8. Employee benefits

Most organizations go on to give descriptions of employee benefits that they offer and this could include information related to health insurance, company retirement plans, compensation, disability coverage to name a few. It is not recommended, however, to give a detailed account of the benefits, since most companies typically have separate benefits plans that explain these in greater detail.

All that is needed here is a brief description of the benefits offered and eligibility criteria along with contact information.

Some companies offer stock options as a way to motivate their employees and it is proven to be quite an effective way to cultivate a sense of ownership toward the company’s success. states it thus, “Every Fool is an owner of The Motley Fool. Shortly after joining the Fool, you’ll be granted shares in the company. There are also periodic opportunities for Fools to buy more shares or sell what they own.”

It is crucial to include a disclaimer in this section in the event of any inconsistencies between the handbook and any oral or written document describing the plans and benefits offered by the company.

It is advisable to ensure that the handbook’s description of benefit plans aligns with the company’s formal plan documents.

9. Termination policies

This section pertains to policies regarding voluntary termination of employment.

Depending on your organization’s policies, clearly, state the period of advance notice that the employee is expected to provide before terminating his employment.

Provide information, although brief regarding your company’s termination policies including final paychecks, what employees need to do, whether there would be an exit interview etc.

While some organizations include this under the companies policy section, others draft this as a separate section in their handbook.

A few tips to consider before writing an Employee Handbook

An employee handbook is a living document and not something that is to be written and then forgotten soon after. It needs to be updated frequently, reviewed and personalized per your company’s policies and values.

Avoid making your handbook bulky and unmanageable. With most companies going digital with their handbook, it is even more of a necessity to make it a light yet effective read.

Most handbooks come with a signed acknowledgment form which the employee is expected to sign. Failing to do so will not provide any ‘legal protection benefits’ in the event of a lawsuit by the employee.

The above-mentioned points should help guide you in the right direction while drafting your own employee handbook.

Whether you choose to take the more conservative approach to draft it or allow creativity to guide you down that path, keep in mind that a handbook is essentially a document that communicates to a new employee what you expect from him/her and what he/she can expect in return from you.

Your language and design should reflect this in as clear a way as possible. It is also advisable to seek legal counsel to ensure there are no legal loopholes that can be exploited before publishing it in print or online.

While your team works toward creating a great employee handbook, it is important to ensure that you hire the right candidate for your company.

With growing technology, sourcing candidate is not a major issue. For every opening, you receive thousands of application.

What is important is to assess these candidates based on their skills, without being biased.

Using Talent Assessment software like HackerEarth not only helps you scale your hiring process by evaluating thousands of candidate with a single click, it also shares a detailed comparison report of candidates. Giving a detailed report, before you interview a candidate.

So make sure only the right candidate reads your Employee Handbook, while you put so much effort into it. Use a Talent Assessment Software.

Talent Acquisition strategy, talents, talent assessment, skill based assessment, assessing skills, assessment, talent assessment software, hiring developer, how to hire, best way to hire, Write Employee Handbook

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Author
Arpit Mishra
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February 22, 2018
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6 min read
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A New Era of Code

Vibe coding is a new method of using natural language prompts and AI tools to generate code. I have seen firsthand that this change makes software more accessible to everyone. In the past, being able to produce functional code was a strong advantage for developers. Today, when code is produced quickly through AI, the true value lies in designing, refining, and optimizing systems. Our role now goes beyond writing code; we must also ensure that our systems remain efficient and reliable.

From Machine Language to Natural Language

I recall the early days when every line of code was written manually. We progressed from machine language to high-level programming, and now we are beginning to interact with our tools using natural language. This development does not only increase speed but also changes how we approach problem solving. Product managers can now create working demos in hours instead of weeks, and founders have a clearer way of pitching their ideas with functional prototypes. It is important for us to rethink our role as developers and focus on architecture and system design rather than simply on typing c

The Promise and the Pitfalls

I have experienced both sides of vibe coding. In cases where the goal was to build a quick prototype or a simple internal tool, AI-generated code provided impressive results. Teams have been able to test new ideas and validate concepts much faster. However, when it comes to more complex systems that require careful planning and attention to detail, the output from AI can be problematic. I have seen situations where AI produces large volumes of code that become difficult to manage without significant human intervention.

AI-powered coding tools like GitHub Copilot and AWS’s Q Developer have demonstrated significant productivity gains. For instance, at the National Australia Bank, it’s reported that half of the production code is generated by Q Developer, allowing developers to focus on higher-level problem-solving . Similarly, platforms like Lovable enable non-coders to build viable tech businesses using natural language prompts, contributing to a shift where AI-generated code reduces the need for large engineering teams. However, there are challenges. AI-generated code can sometimes be verbose or lack the architectural discipline required for complex systems. While AI can rapidly produce prototypes or simple utilities, building large-scale systems still necessitates experienced engineers to refine and optimize the code.​

The Economic Impact

The democratization of code generation is altering the economic landscape of software development. As AI tools become more prevalent, the value of average coding skills may diminish, potentially affecting salaries for entry-level positions. Conversely, developers who excel in system design, architecture, and optimization are likely to see increased demand and compensation.​
Seizing the Opportunity

Vibe coding is most beneficial in areas such as rapid prototyping and building simple applications or internal tools. It frees up valuable time that we can then invest in higher-level tasks such as system architecture, security, and user experience. When used in the right context, AI becomes a helpful partner that accelerates the development process without replacing the need for skilled engineers.

This is revolutionizing our craft, much like the shift from machine language to assembly to high-level languages did in the past. AI can churn out code at lightning speed, but remember, “Any fool can write code that a computer can understand. Good programmers write code that humans can understand.” Use AI for rapid prototyping, but it’s your expertise that transforms raw output into robust, scalable software. By honing our skills in design and architecture, we ensure our work remains impactful and enduring. Let’s continue to learn, adapt, and build software that stands the test of time.​

Ready to streamline your recruitment process? Get a free demo to explore cutting-edge solutions and resources for your hiring needs.

Guide to Conducting Successful System Design Interviews in 2025

What is Systems Design?Systems Design is an all encompassing term which encapsulates both frontend and backend components harmonized to define the overall architecture of a product.Designing robust and scalable systems requires a deep understanding of application, architecture and their underlying components like networks, data, interfaces and modules.Systems Design, in its...

What is Systems Design?

Systems Design is an all encompassing term which encapsulates both frontend and backend components harmonized to define the overall architecture of a product.

Designing robust and scalable systems requires a deep understanding of application, architecture and their underlying components like networks, data, interfaces and modules.

Systems Design, in its essence, is a blueprint of how software and applications should work to meet specific goals. The multi-dimensional nature of this discipline makes it open-ended – as there is no single one-size-fits-all solution to a system design problem.

What is a System Design Interview?

Conducting a System Design interview requires recruiters to take an unconventional approach and look beyond right or wrong answers. Recruiters should aim for evaluating a candidate’s ‘systemic thinking’ skills across three key aspects:

How they navigate technical complexity and navigate uncertainty
How they meet expectations of scale, security and speed
How they focus on the bigger picture without losing sight of details

This assessment of the end-to-end thought process and a holistic approach to problem-solving is what the interview should focus on.

What are some common topics for a System Design Interview

System design interview questions are free-form and exploratory in nature where there is no right or best answer to a specific problem statement. Here are some common questions:

How would you approach the design of a social media app or video app?

What are some ways to design a search engine or a ticketing system?

How would you design an API for a payment gateway?

What are some trade-offs and constraints you will consider while designing systems?

What is your rationale for taking a particular approach to problem solving?

Usually, interviewers base the questions depending on the organization, its goals, key competitors and a candidate’s experience level.

For senior roles, the questions tend to focus on assessing the computational thinking, decision making and reasoning ability of a candidate. For entry level job interviews, the questions are designed to test the hard skills required for building a system architecture.

The Difference between a System Design Interview and a Coding Interview

If a coding interview is like a map that takes you from point A to Z – a systems design interview is like a compass which gives you a sense of the right direction.

Here are three key difference between the two:

Coding challenges follow a linear interviewing experience i.e. candidates are given a problem and interaction with recruiters is limited. System design interviews are more lateral and conversational, requiring active participation from interviewers.

Coding interviews or challenges focus on evaluating the technical acumen of a candidate whereas systems design interviews are oriented to assess problem solving and interpersonal skills.

Coding interviews are based on a right/wrong approach with ideal answers to problem statements while a systems design interview focuses on assessing the thought process and the ability to reason from first principles.

How to Conduct an Effective System Design Interview

One common mistake recruiters make is that they approach a system design interview with the expectations and preparation of a typical coding interview.
Here is a four step framework technical recruiters can follow to ensure a seamless and productive interview experience:

Step 1: Understand the subject at hand

  • Develop an understanding of basics of system design and architecture
  • Familiarize yourself with commonly asked systems design interview questions
  • Read about system design case studies for popular applications
  • Structure the questions and problems by increasing magnitude of difficulty

Step 2: Prepare for the interview

  • Plan the extent of the topics and scope of discussion in advance
  • Clearly define the evaluation criteria and communicate expectations
  • Quantify constraints, inputs, boundaries and assumptions
  • Establish the broader context and a detailed scope of the exercise

Step 3: Stay actively involved

  • Ask follow-up questions to challenge a solution
  • Probe candidates to gauge real-time logical reasoning skills
  • Make it a conversation and take notes of important pointers and outcomes
  • Guide candidates with hints and suggestions to steer them in the right direction

Step 4: Be a collaborator

  • Encourage candidates to explore and consider alternative solutions
  • Work with the candidate to drill the problem into smaller tasks
  • Provide context and supporting details to help candidates stay on track
  • Ask follow-up questions to learn about the candidate’s experience

Technical recruiters and hiring managers should aim for providing an environment of positive reinforcement, actionable feedback and encouragement to candidates.

Evaluation Rubric for Candidates

Facilitate Successful System Design Interview Experiences with FaceCode

FaceCode, HackerEarth’s intuitive and secure platform, empowers recruiters to conduct system design interviews in a live coding environment with HD video chat.

FaceCode comes with an interactive diagram board which makes it easier for interviewers to assess the design thinking skills and conduct communication assessments using a built-in library of diagram based questions.

With FaceCode, you can combine your feedback points with AI-powered insights to generate accurate, data-driven assessment reports in a breeze. Plus, you can access interview recordings and transcripts anytime to recall and trace back the interview experience.

Learn how FaceCode can help you conduct system design interviews and boost your hiring efficiency.

How Candidates Use Technology to Cheat in Online Technical Assessments

Impact of Online Assessments in Technical Hiring In a digitally-native hiring landscape, online assessments have proven to be both a boon and a bane for recruiters and employers. The ease and...

Impact of Online Assessments in Technical Hiring


In a digitally-native hiring landscape, online assessments have proven to be both a boon and a bane for recruiters and employers.

The ease and efficiency of virtual interviews, take home programming tests and remote coding challenges is transformative. Around 82% of companies use pre-employment assessments as reliable indicators of a candidate's skills and potential.

Online skill assessment tests have been proven to streamline technical hiring and enable recruiters to significantly reduce the time and cost to identify and hire top talent.

In the realm of online assessments, remote assessments have transformed the hiring landscape, boosting the speed and efficiency of screening and evaluating talent. On the flip side, candidates have learned how to use creative methods and AI tools to cheat in tests.

As it turns out, technology that makes hiring easier for recruiters and managers - is also their Achilles' heel.

Cheating in Online Assessments is a High Stakes Problem



With the proliferation of AI in recruitment, the conversation around cheating has come to the forefront, putting recruiters and hiring managers in a bit of a flux.



According to research, nearly 30 to 50 percent of candidates cheat in online assessments for entry level jobs. Even 10% of senior candidates have been reportedly caught cheating.

The problem becomes twofold - if finding the right talent can be a competitive advantage, the consequences of hiring the wrong one can be equally damaging and counter-productive.

As per Forbes, a wrong hire can cost a company around 30% of an employee's salary - not to mention, loss of precious productive hours and morale disruption.

The question that arises is - "Can organizations continue to leverage AI-driven tools for online assessments without compromising on the integrity of their hiring process? "

This article will discuss the common methods candidates use to outsmart online assessments. We will also dive deep into actionable steps that you can take to prevent cheating while delivering a positive candidate experience.

Common Cheating Tactics and How You Can Combat Them


  1. Using ChatGPT and other AI tools to write code

    Copy-pasting code using AI-based platforms and online code generators is one of common cheat codes in candidates' books. For tackling technical assessments, candidates conveniently use readily available tools like ChatGPT and GitHub. Using these tools, candidates can easily generate solutions to solve common programming challenges such as:
    • Debugging code
    • Optimizing existing code
    • Writing problem-specific code from scratch
    Ways to prevent it
    • Enable full-screen mode
    • Disable copy-and-paste functionality
    • Restrict tab switching outside of code editors
    • Use AI to detect code that has been copied and pasted
  2. Enlist external help to complete the assessment


    Candidates often seek out someone else to take the assessment on their behalf. In many cases, they also use screen sharing and remote collaboration tools for real-time assistance.

    In extreme cases, some candidates might have an off-camera individual present in the same environment for help.

    Ways to prevent it
    • Verify a candidate using video authentication
    • Restrict test access from specific IP addresses
    • Use online proctoring by taking snapshots of the candidate periodically
    • Use a 360 degree environment scan to ensure no unauthorized individual is present
  3. Using multiple devices at the same time


    Candidates attempting to cheat often rely on secondary devices such as a computer, tablet, notebook or a mobile phone hidden from the line of sight of their webcam.

    By using multiple devices, candidates can look up information, search for solutions or simply augment their answers.

    Ways to prevent it
    • Track mouse exit count to detect irregularities
    • Detect when a new device or peripheral is connected
    • Use network monitoring and scanning to detect any smart devices in proximity
    • Conduct a virtual whiteboard interview to monitor movements and gestures
  4. Using remote desktop software and virtual machines


    Tech-savvy candidates go to great lengths to cheat. Using virtual machines, candidates can search for answers using a secondary OS while their primary OS is being monitored.

    Remote desktop software is another cheating technique which lets candidates give access to a third-person, allowing them to control their device.

    With remote desktops, candidates can screen share the test window and use external help.

    Ways to prevent it
    • Restrict access to virtual machines
    • AI-based proctoring for identifying malicious keystrokes
    • Use smart browsers to block candidates from using VMs

Future-proof Your Online Assessments With HackerEarth

HackerEarth's AI-powered online proctoring solution is a tested and proven way to outsmart cheating and take preventive measures at the right stage. With HackerEarth's Smart Browser, recruiters can mitigate the threat of cheating and ensure their online assessments are accurate and trustworthy.
  • Secure, sealed-off testing environment
  • AI-enabled live test monitoring
  • Enterprise-grade, industry leading compliance
  • Built-in features to track, detect and flag cheating attempts
Boost your hiring efficiency and conduct reliable online assessments confidently with HackerEarth's revolutionary Smart Browser.
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