Communication

• The company handbook can often serve as the most important communication tool between employer and employee. It lays out what is expected of the employees while also giving the employees an idea of what they can expect.
  
  

Legalities

• Having a written set of policies and procedures for your employees to follow can alleviate some liability from the employer. This could range from safety procedures to sexual harassment policies.
  
  

Departments

• For larger companies, the handbook even breaks down the function and responsibilities of each department.
  
  

Culture

• Because it is impossible for executives of medium- to large-sized companies to interact with every employee on a daily basis, a company handbook can be a great way to instill and maintain the corporate culture you are going for.
  
  

Reference

• The company handbook is an invaluable resource for both employees and managers when they need to find a piece of information or a company policy. Without a handbook, this information may not be accessible or can be much harder to find.