We’ve all probably had a less-than-exciting onboarding experience when starting a new job. It’s hard to blame the employer just because it’s pretty difficult to make onboarding a fun and exciting thing. Still, signing an endless amount of paperwork, clicking through monotonous online trainings, and reading corporate jargon-heavy handbooks (which almost always sound the same) can be a real drag for new employees and employers alike. After all, you’ve just hired this great candidate and you want to ensure that their first day shows them what it’s like to work for your company, not what it’s like to sit around all day locked in a weird room with no furniture listening to a computer talk about fire safety rules.
At Payday HCM, we get it—making those more, well, boring parts of a business not-so-boring can be a tricky task. When it comes to onboarding, we’ve had plenty of clients approach us with questions not only about how to make the process go more smoothly, but also how to make it more fun and enjoyable. Oftentimes, it starts by looking at what some of the more rudimentary tasks in the onboarding process are and looking for ways to give them a bit of a boost. One of these things can be your employee handbook: something that everyone will have to read, but, when done right, can inspire your new employees and give them a sense of what’s to come.
That’s why, in this article, we’ll be breaking down the cost of creating an engaging and compliant employee handbook. We’ll look at three different options when it comes to creating a handbook, including:
We’ll discuss not only the typical cost associated with creating a handbook using these services, but also the advantages and disadvantages of each one too.
1. Template-Based or DIY Tools
Firstly, we’ll start by going over the cost (or lack thereof) of creating an employee handbook internally.
Employee Handbook Template Cost
Template-based or DIY solutions usually range from free to around $1,299, depending on the platform and level of support provided. Some services, like Handbooks.io, offer a comprehensive handbook package for a one-time fee, while others, such as SHRM's Handbook Builder, provide ongoing access through a subscription model.
These tools will typically include federal and state-level policy templates, which can be customized to a certain extent to reflect company-specific language and guidelines. There also exist a number of free templates online, whether that be directly through a program like Microsoft Word or other online sources.
Pros & Cons Of Creating Your Own Employee Handbook
The main advantage of template tools is their affordability and speed, as well as their level of control. You can often build a compliant and reasonably thorough handbook in a matter of days with minimal outside assistance—if needed, some platforms also offer helpful guidance to walk users through the process. You can also ensure your handbook reflects the tone of your organization.
However, although the handbook creation process can be quick in theory, it would still require you to dedicate a decent amount of resources towards. Outsourcing the creation of your handbook will also better ensure that your handbook is compliant with any state or federal laws and can help you or other members of your organization focus on other things.
2. HR Service Providers
Next, we’ll go over the potential cost as well as some advantages and disadvantages to outsourcing your handbook creation to an HR service provider.
Cost Overview
HR consulting firms typically charge between $1,250 and $5,000 for a custom employee handbook, depending on the scope and complexity. For example, Complete Payroll Solutions offers packages around $2,000 for businesses operating in up to four states. At Payday, our employee handbook service cost generally can vary, but typically starts at the $1,250 mark.
These services will differ from the ones mentioned in the DIY section as an HR service provider will handle the creation of the handbook for you instead of offering either a template or an online platform for you to create your own handbook. Sometimes, providers may also include the option to update your handbook annually for an additional fee.
Pros & Cons
HR service bureaus can strike a good balance between cost and quality. They can create a handbook that not only complies with applicable laws but also reflects your company's culture and values. Their expertise often includes real-world HR scenarios, making their advice practical and actionable.
On the other hand, their services can be significantly more expensive than template tools (some of which can be free), which may not be feasible for very small businesses. And, while you certainly will work closely with the service provider to create your handbook, you do still run the risk of it not entirely reflecting your organization’s tone. This could mean a possible copy edit after receiving the finished product.
3. Legal Services
Finally, we’ll cover how much it would potentially cost, as well as the benefits and drawbacks, to outsourcing your handbook creation to a legal service provider.
Cost Overview
Partnering with a legal professional for employee handbook creation or review typically costs between $660 and $710 on average, though more complex projects can exceed that. Online platforms like ContractsCounsel offer fixed-fee options for drafting or reviewing, while traditional law firms may bill hourly based on the scope of work.
This approach is most often used by businesses that need to navigate multi-jurisdictional policies, operate in high-risk industries, or simply want to ensure their documentation is airtight from a legal standpoint. Legal review can be either a standalone service or paired with other handbook development options.
Pros & Cons
The major benefit of using a lawyer is the legal precision and peace of mind it brings. A well-drafted handbook from a legal expert ensures your policies are defensible, compliant, and aligned with both state and federal labor laws. This can be especially crucial for businesses that operate heavily under things like OSHA guidelines.
The trade-off is that legal services tend to be the most expensive and can take longer to complete. Also, legal professionals may focus more on compliance than on tone or usability, which could lead to handbooks that feel less engaging or reflective of company culture.
Creating A Handbook Shouldn’t Need A Handbook
There are some things when it comes to running a business that can feel not only confusing, but perhaps frustrating or even boring. When it comes to creating an employee handbook, this is no different: not only do you need to ensure your handbook covers all the bases on the legal compliance end, you also need it to reflect your company’s values and give any new employees a sense of what your company culture is like. It’s informational, but you don’t want it to come across as boring. It can be a tricky task, but with the information provided in this article, you’ll be ready to conquer it with ease.
Ensuring your employee handbook is not only reflective of your organization’s values but is also compliant with all rules and regulations is key to ensuring a successful onboarding experience. Learn more about Payday’s HR services and how we can help you create your business’s handbook.
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