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For a business to fully operate on its own, the employers must hire employees. They have to announce it on all media platforms to attract people with the level of skill that they need for the job. Employees are the main factor why a business survives. Manpower is always there to keep everything afloat. Without that, the business is bound to face bankruptcy and closure.
When an employee gets hired in the company, he gets oriented with his tasks. Along with that is an agreement that lays out his relationship with his employer. It also details his rights and responsibilities as an employee and the privileges he gets from his employer. Both parties have to sign in this agreement to solidify the agreement you once had.
As an employer, it is important for you to draft a hiring agreement contract. This is the employee’s guide on the legal aspects of employment. Through the contract you clarify expectations and protect yourself from future dispute.
But before writing the contract, you need to determine what kind of duties you expect the employee to perform. Have a specific degree of each task the employee will carry out for you. Determine his number of work hours and when he should necessarily extend. You should also state the standard wage for an employee and put it in the contract.
There are some information in the company that only you have an access. When it comes to that, you also have to determine if the employee gains access to it. Information such as trade secrets, copyrighted materials, and patents have greater weight. It is in danger of being taken away if the company allows an employee to gain access to it. In this case, you can draft a non-disclosure agreement or NDA. Have the employee sign it should you give him access to this kind of information. It gives the employee and idea on what to do with the information he has.
Another thing to consider is the events that will happen once the employee leaves the company. You can limit his abilities in working with another employer for a period of time. This can sometimes lead to leakage of information and application of the work processes of your company in his present workplace. Lastly, consult an attorney for the legal matters before writing the agreement.
Writing hiring agreements is a long process. You have to think about what to write that will protect you and the employee. The writing process takes so much time as this is an important document. As an employer, always consult an attorney when writing contracts like this.
1. Identify the parties of the agreement.
The first part of the contract should identify the names of the parties who will sign the contract. Name the employer and the employee. Pretty basic but very important. It needs to be specified since their responsibilities and duties will be spelled out later on in the contract. You also have to specify on how you would be referred to in the later parts of the contract.
2. Put the benefit and consideration of both parties.
In contracts such as this, both the employer and the employee have tasks to do and things to give up. The employer wants to benefit from the service rendered by the employee. In turn, the employee has to render his best service to the employer for the benefit of the company.
3. Write the duration of the contract.
Write how long the contract is good for. In this way, the employee would know how long he would work for you. He could also prepare on what to do in case his contract expires. If you offer a contract renewal, it might change his mind on staying with you or finding another employer. That is, if you ever decide to offer one.
4. Describe the employee’s job.
The next part is describing the employee’s job in your company. His tasks should be laid out. You could also include a part where he can fill in the shoes of other employees temporarily when there is lack of manpower. But in the overall, a clear job description helps him in identifying and knowing his position in the office.
5. Limit information usage.
Some information of the company need to be accessed by the employees for work purposes. Put a limit on the information the employee can access. He might get it and divulge these information to others when he leaves the company. At times like this, you have to act in advance and put some borders on access of information by the employees.
6. Explain how the compensation is calculated and paid.
This is a long part to write, and it requires some computation skills. In this part, you tell the employee about how his salary is computed. You provide a breakdown on the payment process such as how much he is being paid in a day, when doing overtime, and during public holidays. Put into details on how much of his salary goes to tax contributions. Next is the explanation of when he gets the payment and in what way. Most payment methods are in the form of ATM cards deposited every month.
7. List the benefits the employee gets.
After explaining about compensation, the list of benefits the employee gets should be discussed. His government contributions are divided into the monthly payment for health insurance, housing loan, and social security system. This is a separate amount from the tax which is also taken from the monthly salary. Explain how these benefits, especially the health insurance, helps him when he gets into trouble, or buying a new home. An employee should get an idea how his contributions are useful to him in more ways than one.
8. State the performance review process.
Tell the employee how his performance would be evaluated, either on a monthly, bimonthly, or quarterly basis. Set a standard for the performance evaluation so he would be motivated to work harder. Explain to him all the know hows of his performance, where to improve and how to take it to the next level.
9. Explain termination procedure.
This is where the policies and rules come in. explain all the rules leading to termination to the employee, including the things he can and cannot do while working for your company. There are various levels of offenses and the heaviest ones can lead to termination. The employee should know each of these to guide his moral aspect while working.
10. Redraft the contract.
After writing the whole thing, read it again and look for more questionable areas in the contract. Revise it and change some things that need to be changed. It needs to be perfectly done before the employee gets it. Do not let the employee start the job without signing the contract.
The hiring part of setting up a business takes so much time and effort. You need to schedule interviews and look at the resumes of the employees one by one. This decision lies mostly on you since you are the employer. In hiring the right employee, you need to make a sound judgment. These people will be working in your team and you are responsible for them in more ways than one.
But first, you need to tell yourself what kind of people you are looking for. You need to hire the ones who can carry out the task with ease. Those who are willing to learn even with the lack of experience are also good candidates for employment. Same goes for those who are already experienced but eager to learn more are welcome. Choose people who work well with others. No one is meant to work alone. Most of the time, the interaction and effort he does as part of the team determines his personality. Find people who are willing to work on shifts as long as you pay them well. Define the job description of the employees that you are looking for. You would get a variety of people vying for the job.
You can determine most of these traits in the interview. It can be seen on how well they answer the questions. Some employees have inconsistencies while some do it so well. You also need to listen to their expectations of the job. Do not let them ask you about the salary. Instead, explain every bit of the salary to them.
For security purposes, run a background check on your employees just to be safe. You need to know more about them before they get the job. If you find suitable candidates that you want to hire, give them the job offer and the contract should follow suit. Hiring employees is kind of taxing, but it is worth it when you choose the right ones.
Hiring agreements are helpful in protecting both the employer and the employee in case of feud over offenses done while the agreement is still valid. It is also a formal written agreement between both parties in doing their parts for each other. This contract can be rendered void anytime or renewed, depending more on the employer’s part. If this article has been helpful, don’t forget to read other articles in this site for further ideas on agreement templates.