Being Completely Transparent With the Terms of an Employee Contract

Hiring new employees is a difficult process that every company must learn to handle.

Hiring new employees is a difficult process that every company must learn to handle. Start-ups and new businesses face a tougher battle as all of their employees have to be hired from scratch. Companies who have been in business for years still face the struggle of maintaining current employees and filling vacant positions. While there are several different factors contributing to the acquisition and maintenance of new employees, there is one simple component that most companies overlook: transparency. Contracts are often a make-or-break scenario for companies. Employees will make their final decision based on the contents of a contract. When applicants can’t understand the contract or feel that there have been blatant omissions, they are less likely to move further in the recruiting process. Here are a few aspects of employee contracts about which employers should be completely transparent.

1. The training process.

Every company will have a training and onboarding process during which employees are taught about the job position and overall business. This training acts as a sort of initiation process that all employees go through in order to create a more cohesive workforce. Without this training, employees wouldn't know what to expect. As a critical part of the hiring process, information about this training should be outlined in an employee contract. Potential employees will want to know the duration of the training, whether there is compensation or not, where the training takes place and more. Hiding these details in a contract will only increase the chances of complaints or walkouts during the training process. It is better to reveal these details beforehand so employees know exactly what to expect.

2. Employee benefits.

When workers apply for a new position, they are searching for much more than just a salary or new position. A majority of employees have medical, insurance and retirement benefits tied to their occupation. Intelligent employees will be just as concerned about their salary as they are about these benefits. This is especially true for those workers who intend to work in a company for a long period of time. These details should be thoroughly outlined in an employee contract. Companies are encouraged to dedicate a whole section to these details. It is also important to word these items in common parlance rather than legal jargon. Contracts should be written so that the average employee can understand. Employees will be more willing to work for companies that are honest and open about their insurance, healthcare and retirement benefits.

3. Job expectations.

Companies are encouraged to be as detailed as possible when outlining their expectations on a job application. Not only will this ensure that only qualified workers apply, this detail will also clear up any confusion that may arise in the future. In order for employees to perform well in a new position, they must know what companies expect. Job descriptions are a great place to have these details, but employee contracts must also include this information. As the contract is the legal binding between and employee and employer, workers will want to see that their job description is included.

4. Holidays, sick days and bonuses.

Beyond all of the most important information, companies should also be completely transparent on the smaller issues. Every employee will want to know about their vacation days, sick days and any bonuses that are available. Many companies will try to hide this information under clever wording or complete omission. Some businesses do this out of laziness, while other are afraid these terms would scare off potential employees. Being forthright about these details will give employees a fair opportunity to accept or counter. This is a much better outcome than having employees quit later on.

The hiring process can be stressful for both applicants and businesses. Each side wants to get the best deal possible. As employees tend to be in a more vulnerable position, companies need to be completely transparent with the terms of their employee contracts.