8 Things To Include In Employment Contracts

Author: Brett Farmiloe

 

Filling your open positions can often be a long and arduous process. Even after you have found the perfect candidate, your work is not done! There is always a chance that the candidate will review your employment contract and either have questions or want to negotiate. This is especially true for companies who haven’t laid out all the policies and requirements of their employees.

In order to ensure that your candidate has all the information needed to sign on the dotted line, you should review your contract and identify any holes. To help you do so, we have asked eight HR professionals what points are often overlooked by employers in their contracts. Keep reading to ensure that your contract covers all the bases!

Education and Association Priorities

Ask your new employees about education, volunteering or association priorities they have. If they belong to an association that helps them grow through education and leadership, consider covering their yearly membership. If they are looking to excel in a certain area that can help them grow in your business, offer a tuition stipend that can be used after a certain benchmark or timeframe. If they are passionate about volunteering, offer a quarterly amount of work hours to help keep them engaged.

Sukki Jahnke, VP of Marketing and Programs at Tempe Chamber

Compensation & Benefits

People want to know what they’ll be paid, and what benefits they’ll receive as a result of working for an employer. Every employee contract needs to clearly define what compensation an employee will receive, when they will begin receiving benefits, and how often the employee will be eligible for increases to compensation.

Brett Farmiloe, Markitors

Flexibility Consideration

Employee contracts should have reasonable consideration of flexibility in how individuals make decisions, consider opportunities and may achieve the same expected results using a different process, schedule or resource than what is typical or historically been used. Your employees are individuals, not conforming groups with the same skills, considerations, backgrounds and qualities. Being reasonably flexible or at least open to consideration will often result in higher satisfaction and production.

Michele M Rebeor, Consulting, LLC

Non-Disclosure Agreement

All employers, no matter what the industry should include NDA's to protect their processes and trade secrets. This should be included on every employee contract!

Mark Smith, Program Chair at UAT

Employee Exit Terms

Oftentimes, employees tend to overlook any policies regarding what happens if the employee leaves the company. In terms of confidentiality, it is crucial that employees know if they are restricted from disclosing certain information or if they are barred from starting their own business in the same industry. Especially in private industry companies, clauses like these exist, but are not talked about or made known to the employee. Whenever there is a potential that a company can control what you do after you are no longer with them, that is vital to know upfront when signing a contract.

Max Hansen, CEO of Y Scouts

Purpose

The what, the when, the how much, and the who are important in employee contracts, but don't forget about the "why?" part of the contract.

Brian Stinson, Co-Founder of The PEAK Fleet

Work From Home Expectations

With the pandemic going on and many companies transitioning to remote work, it is crucial to analyze the work-from-home agreement and dive into what that entails. As an employee, it is important for you to understand the hour requirements, the type of communication, expectations and even the rules of bringing equipment home from the office for at-home use. Working remotely is new ground to tackle for most companies and it is important for employees to ask important questions before signing a contract.

Denise Gredler, Founder and CEO of BestCompaniesAZ

Required Technology

In employee contracts, you should make sure to include a list of technology that is required for the position. This can be anything from apps to hardware to personal devices. Make sure people are prepared!

Joel Stern, Manager, Community Ambassadors at Hownd