How Much Does It Cost to Create an Employee Handbook?

Your employee handbook is more than just a simple document; it guides employees through the company’s culture, policies, and expectations. Creating an effective employee handbook is crucial for setting the right tone and ensuring smooth operations within any organization. However, one of the first questions that arise when embarking on this task is: How much does it cost to create an employee handbook? This question is particularly important for new businesses and small enterprises that need to manage their resources wisely.

The answer, as always, is “it depends”. It can be anywhere from free to $10k.

In this article, we’re going to walk you through all the different ways you can create an employee handbook and how much one might cost you. Whether you decide to do it all by yourself or think about getting some pros to help out, we’ll cover what you need to know to make a choice that fits what you need and what you can afford. Let’s dive in and start figuring out the best way to get your employee handbook off the ground without emptying your pockets.

4 Factors that Influence the Cost of Creating an Employee Handbook

When it comes down to figuring out how much it’ll cost to put together your employee handbook, a few key things play a big part. 

1) Company Size and Complexity

Think about how big your company is and what kind of work you do. A small coffee shop is going to have a much simpler handbook than an international company with thousands of employees across many departments. The more people, locations, and moving parts you have, the more complex your handbook will need to be, all of which will add to the cost.

2) Legal and Compliance Risk Tolerance

Laws change all the time, and keeping up can feel like a full-time job. There are federal and state-specific laws (and even county or city laws) you need to cover in your handbook that will differ based on where you do business. Covering them all is important because it keeps you out of legal hot water. Sometimes, you might need a lawyer to help put it all together or at least review your handbook to make sure it’s compliant, and lawyers ain’t cheap.

Your costs here will depend on your compliance risk tolerance. If you’re a 5-person startup and you’re all friends, you’re probably OK grabbing free or sample content from “the internet” or an old job. Not so once you move past the 15- or 50-employee thresholds or start to operate in multiple states.

Guess what? Blissbook can help with our HR policy content services. We offer model policy templates that are already in line with current city, county, state, and federal laws, and can help you keep those policies up-to-date as the laws change.

3) Industry-specific Requirements

Next is the industry you’re in. Different types of businesses have different rules they need to follow. For example, a construction company has to cover safety procedures and regulations that a retail store might not, and a public-facing retail store may have laws they must follow that an in-office tech company might not. If your industry has a lot of specific requirements, you’ll need to spend more time and possibly money making sure your handbook covers all those bases.

4) Customization and Production Level

How customized and detailed you want your handbook affects your budget. If you’re aiming for something that really reflects your company’s culture and goes beyond the basics, you’ll need to put in more effort, time, or you could hire someone to help, which adds cost. The more you want your handbook to stand out and be tailored to your company, the more you will spend.

This is where considering a digital policy management platform like Blissbook can be a game-changer. Blissbook isn’t just about making a handbook; it’s about creating something that fits your brand perfectly. Our standard implementation and design services take care of everything from importing and reviewing content, making minor edits to polish your words, designing the handbook to match your company’s vibe, and providing both technical and non-technical support to make sure your launch goes smoothly. We even offer training to help you keep things running well long-term. Yes, it costs money, but our focus on this business helps us do a better job at a lower cost than a generalist.

While adding a service like Blissbook might increase your initial costs, it also means getting a polished, professional handbook without needing a huge team or spending a ton of time on it yourself. Plus, those extra touches like “read more” buttons and personalized content can make your handbook not just useful, but engaging for your employees, leading to higher compliance rates and lower risk.

New Handbook vs Revisions

When considering the costs associated with the employee handbook, two main approaches stand out: creating a new handbook or revising an existing one.

Let’s delve into the estimated cost ranges for each and the different resources at your disposal.

Creating a New Handbook

If you’re looking to start the handbook from scratch, there are two ends to consider based on the size and complexity of your company:

On the Inexpensive End

For startups or small companies with limited resources, there are cost-effective options available:

• Utilize resources from a Professional Employer Organization (PEO), benefits provider, or payroll company. If you’re already using one (and depending on your plan), you might already have access to handbook resources and you just need to ask them. [FREE]
• Repurpose content from an old handbook from a previous company or a friend’s company, and quickly customize it for yours. [FREE]
• Search for free content templates online and refer to this article that outlines essential policies for guidance. Prioritize key policies and sections that your handbook absolutely needs. This means laying out laws and company policies like code of conduct, equal employment opportunity statements, and leave policies right at the start. This approach helps you avoid spending time and resources on less critical sections until you’ve got the important stuff nailed down. [FREE]
• Explore handbook builders available online, some of which start as low as $100. SHRM’s (see below) is $400/yr. [$100-$1000]

For Larger or Multi-State Companies

If your company is larger or operates in multiple states, consider investing in more robust solutions:

• Use automated handbook builder tools like those offered by SHRM, which start at around $400, or explore other employee handbook builder options. [$400]
• Hire an HR consultant, with costs typically ranging from $1,000 to $5,000. Consultants can customize the handbook to fit your company’s culture, incorporate industry-specific requirements, and address legal and compliance risks. This makes them a much better choice than a handbook builder for fairly large organizations. [$1-5k]
  • Blissbook offers this service!
• For companies with even more specific industry requirements or a really low tolerance for compliance risk, consider engaging a law group or legal counsel, which may cost between $2,500 and $10,000, or even higher. They can provide expert guidance and ensure legal compliance at a higher level. [$2-10k+]

In summary, having professional assistance makes the idea of diving into handbook creation seem less daunting. It ensures that the handbook is easier for employees to digest and actually read, as it’s tailored to the company’s needs and style, rather than just covering all legal bases, as in a handbook builder.

Blissbook’s content and design team is also available to manage the entire process, offering an end-to-end solution that minimizes your involvement while ensuring a professional and polished final product.

Consider your company’s size, industry requirements, and budget constraints when deciding which option is best suited to create a new employee handbook.

Revising an Existing Handbook

When updating an existing handbook, your focus is on bringing it up-to-date rather than starting from scratch. In such cases, the builder route might not be your priority. Instead, you’re more inclined to engage with an HR consultant or a lawyer to ensure thorough revisions.

The decision to revise depends on various factors, including the age of your current handbook and the extent of changes needed to align with your evolving business requirements.

Lawyer/Legal Assistance

Opting for legal assistance can be costlier when reviewing and amending existing content compared to starting anew. Lawyers may offer annual review packages, which may range from $500 to $1,000 for updating the same handbook they initially created. Check with the legal team who created your handbook initially!

However, if substantial changes are necessary, costs can escalate to between $1,500 and $5,000+. For complex needs, such as operating in multiple states or adhering to industry-specific regulations, or extensive changes, expenses can exceed $10,000.

HR Consultant

Engaging an HR consultant often proves more economical, as their hourly rates are typically lower than those of lawyers. Consultants may charge between $500 and $4,000 for revising existing content, depending on factors such as the scope of revisions and the number of states covered. You can also have a lawyer quickly review it once you’re done for much cheaper than having them do the whole thing.

Blissbook offers content services that include regular handbook reviews to ensure compliance with the latest changing laws. Costs are tailored to the number of states covered and can range from $500 to a few thousand dollars.

The Blissbook content management product itself offers a streamlined solution for keeping your handbook current, making it simpler to monitor changes and compile feedback from your team. With features that allow you to look back on previous edits and comments, your team can easily discuss and decide on updates, annotating the document in a way that can be visible to either all readers or just those involved in the editing process. 

Considerations

• While revising an existing handbook is typically more cost-effective than creating one from scratch, it’s essential to assess your specific needs. For example, if your handbook is significantly outdated or if extensive changes are required, it may be more efficient and cost-effective to start afresh. Your consulting partner will be able to customize the up-to-date policies they know and use faster than they can review and update all of your existing policies that were written by someone else.
• If you get your handbook content from a builder or an HR consultant, you’ll likely want to have that content reviewed at least every couple of years by your lawyer. Even if the content and advice you get is from lawyers, they aren’t your lawyers. Also, if your risk tolerance is low, no matter where you get your content, review it with your own legal counsel. This review might cost a few hours of their time, typically ranging from $500 to $1,000, depending on the extent of the review and your lawyer’s billing rate.

Cost Components of Employee Handbook Creation

When putting together an employee handbook yourself, there are various monetary and non-monetary costs you should consider. These costs cover creation and also how you’re getting the work done and into the hands of your employees.

Internal Resource Costs

Time and effort of HR personnel

First off, let’s talk about the time and effort from your own crew, especially your HR team. They’re the ones who know your company inside and out, and they’ll need to spend a good chunk of time gathering information, writing policies, and making sure everything’s right. This is a big job, and it’s important, but it also means they’re not working on other tasks during this time, so there is an opportunity cost there.

If you can reduce their time spent to simply customizing provided content, instead of writing it all from scratch, you can reduce your opportunity cost here.

Other departments

Creating your employee handbook is not a solo mission; you’ll also collaborate with other people in your organization. Their time spent is an opportunity cost as well.

External Resource Costs

Professional writer or consultant

Sometimes, you might not have all the expertise you need in-house, or maybe you just want to make sure your handbook is top-notch from the get-go. That’s when you might think about bringing in some outside help. This could be a professional writer who knows how to make policies clear and engaging or a consultant who specializes in handbooks and can make sure you’re hitting all the right notes. 

Legal counsel or employment law expert

Don’t forget about legal advice. Like some of Blissbook’s features mentioned previously, having a lawyer who knows employment law look over your handbook can prevent a lot of headaches later on. These experts cost money, but they can prevent expensive mistakes from happening. An ounce of prevention is worth a pound of cure!

Compare Handbook Creation Options: DIY, Handbook Builder, HR Professional, or Lawyer?

When it comes to putting together an employee handbook, you have a big decision to make: Do it yourself (DIY) or hire professionals? Each option has its pros and cons, and understanding them can help you make the best choice for your business.

DIY

Pros:

• Dollar Cost Savings: The most apparent benefit of DIY is avoiding the fees associated with professional services. If your budget is tight, this can be a significant factor.
• Internal Knowledge: Who better understands your company than the people who work there? Crafting the handbook internally ensures it accurately reflects your company culture and operations.
• Flexibility: You have complete control over the process, timelines, and revisions, allowing for a flexible approach to developing your handbook.

Cons:

• Time-Consuming: Creating a comprehensive and compliant handbook takes a considerable amount of time, which could be spent on other HR responsibilities. Projects like this are always derailed and it will take you many months or longer to complete.
• Expertise: Without specialized knowledge, you might miss important legal requirements or industry standards, which puts your company at risk of costly fines, legal fees, negative press, and distractions.
• Quality and Scope: There’s a risk that the handbook might not be as polished or comprehensive as one created by professionals, possibly affecting clarity and compliance.

Handbook Builder

Pros:

• Ease of use: Handbook builders provide user-friendly platforms with customizable templates, making it easy to create a handbook.
• Time-saving: Builders streamline the process by offering pre-written content and legal compliance features, reducing the time needed to create the handbook.
• Cost-effective: While there may be subscription or one-time fees, using a builder is more affordable than hiring consultants or lawyers.

Cons:

• Limited customization: While builders offer templates, customization options may be limited compared to creating a handbook from scratch. You’ll still spend a bunch of time customizing policies unless you want a 100+ page document full of legalese.
• Less personalized advice: Builders may lack the personalized guidance and expertise provided by HR consultants or lawyers.
• Reliance on software: Any changes or updates to the handbook may require navigating the builder’s platform, which could be restrictive.

HR Professional

Pros:

• Expertise: HR consultants offer professional guidance and expertise in crafting employee handbooks tailored to your company’s needs.
• Personalized support: Consultants provide personalized advice, helping you navigate complex legal requirements and industry-specific policies.
• Comprehensive services: Consultants can assist with content development, legal compliance, and employee engagement strategies.

Cons:

• Higher cost: Hiring an HR consultant can be more expensive than DIY options or using handbook builders, especially for ongoing support.
• Dependence on external support: While consultants offer valuable expertise, relying on external professionals may limit your internal knowledge and capabilities.

Lawyer/Legal Counsel

Pros:

• Legal expertise: Lawyers offer in-depth knowledge of employment laws and regulations, ensuring legal compliance in the handbook.
• Risk mitigation: Legal review reduces the risk of legal disputes or non-compliance with employment laws, protecting the company from potential liabilities.
• Quality assurance: Lawyers ensure the accuracy and thoroughness of the handbook content, providing peace of mind to employers.

Cons:

• High cost: Legal services come at a premium, making hiring a lawyer one of the most expensive options for handbook creation.
• Time-consuming process: Legal review and revisions may extend the timeline for handbook development, delaying its implementation.
• Overly legalistic language: Lawyers may prioritize legal compliance over clarity and employee-friendliness, resulting in dense or confusing language in the handbook.

The decision on how to create your employee handbook depends on various factors that have been mentioned at the beginning of this article. Consider the pros and cons carefully to choose the option that best aligns with your company’s needs and resources.

Final Thoughts

From understanding what goes into a handbook and the factors that affect its cost, to navigating the options between doing it yourself or seeking professional assistance, there’s a clear pathway to achieving a handbook that aligns with your company’s needs and budget.

Consider the distribution method, as well. Printing costs and distribution logistics for physical copies should be weighed against potential expenses for digital access and platform setup. Each approach contributes to the overall cost of creating an employee handbook.

A well-crafted employee handbook is invaluable. Therefore, the importance of getting it right can’t be overstated. Blissbook has emerged as a standout solution in this landscape, offering an easy and efficient way to create, manage, and update an employee handbook. With its customizable templates, comprehensive legal updates, and engaging design options, Blissbook streamlines the handbook creation process, making it accessible to businesses of all sizes and industries.

We encourage you to explore Blissbook and set up a trial to take advantage of its offerings. This step could be the key to enhancing your company culture and ensuring your team has the guidance they need to succeed. Don’t wait to make this important investment in your company’s future.