When I don't ground it, there is a slight hum (not offensive), but when I do, if the bar or my hand is not in contact with the strings, the fingerpicks cause what I guess is a little short, audible upon contact.
What is your advice? Don't ground?
Here is what I am working on.
I had asked advice in an earlier thread regarding the replacement of the pickup on a cheap asian lap steel. One of our forum members (Len) graciously offered a pickup, and I gleefully accepted. It is a 12 string ToneAligner. Obviously, it would be a waste to place it on the little guitar, so I am building this one:

I am halfway done, but couldn't resist the temptation to slap it together temporarily, just to hear it sing.
It is sweet sounding!
I have to take it back apart to sand, stain, trim the length and neck width down a bit, paint the bridge and nut, etc, etc.
It is made with two layers of 1x6 Red Oak, using a jig saw, screwdriver, a hand drill, and file.
As tough as the Red Oak is(ate up jig saw blades), it is very light, and I may add another layer just to make sure it is not affected by flex.
The fretboard is a piece of hardwood flooring
I used a file to cut the 'frets'.
Please don't ask what the white dots are - they are just temporary
Very utilitarian, but oh, so sweet.