As your business begins to grow faster, you can expect your HR contract list to expand rapidly as well. Before you know it, your HR contracts can have you feeling buried under an avalanche of disorganization.
In such cases, managing the ever-growing pile can be quite a task, especially if you don’t have the right tools.
So, how do you manage so many contracts without letting them spin out of control? Automating the process works like a charm and can even speed up your negotiations by up to 50 percent.
Let’s find out more about HR contract automation.
- How to Create, Manage, and Automate HR Contracts
- HR Contracts – What Are They?
- Who Is Responsible for HR Contracts?
- Types of HR Contracts
- How to Create HR Contracts
- Automating HR Contracts
- How Can You Manage HR Contracts Efficiently?
- Conclusion
HR Contracts – What Are They?
An HR contract is an agreement between an employer and an employee to set and regulate the terms of cooperation. These legally binding agreements are negotiated and finalized by the signing parties (i.e., the employer and the employee).
Typical human resources contracts are used to formalize pre-discussed job roles. However, some HR contracts may need more critical evaluation from the department and other members on the employer’s side.
Who Is Responsible for HR Contracts?
Since HR contracts often require specific legalities, their construction usually falls under a competent HR team’s responsibilities. The HR team manages all aspects of employment stipulations, from benefits and personal needs to expected duties and performance.
Types of HR Contracts
Many companies are quite flexible while offering contracts to their employees. According to the terms of employment, there are four types of HR contracts:
- Full-Time – Also known as permanent employment, these contracts don’t have end dates and remain active indefinitely. Both parties retain the option to end the agreement at any time, with or without prior notice per the terms of the contract.
- Part-Time – These are offered to employees who agree to work for a specific and usually shorter duration weekly.
- Fixed-Term – These temporary contracts specify end dates and often include negotiable options for further actions at that time, such as terminating the contract completely, extending it, or offering permanent employment.
- Casual – Casual HR contracts don’t bind the employer to provide work to the employee. Similarly, the employee is not obliged to accept the work when it is offered. They operate on an “as needed” basis.
Some HR contracts include important legal conditions and addendums, such as:
- Options Agreements. The parties agree on a specified compensation and time period to perform a specific task. It opens share options to the employees.
- Non-Disclosure Agreements. Confidentiality agreements provide an outline for employees regarding what they can and cannot discuss, and with whom, in order to protect the company’s sensitive information.
- Variation Letters. These short-form agreements specify modifications to original employment contracts.
How to Create HR Contracts
The production of professional HR contracts isn’t rocket science. In fact, if you follow a sustainable method, they can be pulled together in no time. Here is what you need to do:
- Use readable language. HR contracts must be simple to read and understand. Make sure to use straight-to-the-point information and make it sound friendly.
- Nail the details. Always emphasize important details like start and end dates, contract length, probationary periods, working hours, chains of command, etc.
- Make it personal. The employee should feel a connection with the HR contract, so talk about details discussed during the interview and the employee’s qualities and expectations.
- Brand it. Your HR contract must comply with your brand in order to make a good impression on new workers.
- Automate it. Managing hundreds of contracts is overwhelming, so make sure to automate your contracts. You should also consider using offer letter templates to make your job easier.
Automating HR Contracts
Automating HR contracts is pretty simple, especially with document automation platform like AXDRAFT. These tools provide a fully in-browser solution to handle and automate HR contracts.
To get to grips with the automation process, here is a quick guide:
- Set up document templates. Document templates provide an easy blueprint for your contracts, so you can make quick changes like names, designations, and dates. When you set up a template, make sure to give it a branded look featuring your company’s logo, address, and other details.
- Set up, approval persons. Approvers regulate the templates and have the authority to approve or send them back for improvements. You can designate members from the company’s hierarchy to approve different documents.
- Internal collaborations. Collaborations make your job easier by allowing relevant team members to add or remove any information from the HR contract.
- Set up an e-signature. Electronic signatures let you sign contracts in the browser on any device.
- Use post-signature management functions. You can add smart features like reminders, analytics, search results, and much more.
Benefits of Contract Automation
Contract automation offers obvious benefits to busy organizations. Here are a few of them:
- Improved efficiency. Using pre-approved templates means the contract process becomes up to 83% faster.
- Accuracy. Proper software absolves you from encountering the major pain point – human error. HR contract automation facilitates the complexities; hence, it streamlines the whole process with a great degree of accuracy.
- Increased work value. There is less time spent on reminders and follow-ups, so it enhances the work value for your HR team.
- Controlled access. You’re in charge of what gets approved and what doesn’t. With additional tools and analytics, it’s within your control.
How Can You Manage HR Contracts Efficiently?
Managing HR contracts becomes simpler when you opt for automation tools. However, if you want to yield even better results, make sure to focus on the following aspects.
- Integrate. When you sync different tools across a single platform, it is easier to track the data and keep it synchronized.
- Save time. By introducing automation tools you relieve the workload, allowing your HR team to focus on more productive tasks. You do more with less time.
- Set date reminders. Reminders let you track important dates, renewal details, etc., so you will never miss out on anything critical.
Conclusion
When you shift to a browser-native platform for HR automation, it lets you collaborate with other workers and makes employee management smoother.
Especially with tools like AXDRAFT, HR contract management isn’t just simpler; it also adds to the overall efficiency of your company.
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Author: Yuri Zaremba
General Manager at AXDRAFT (an Onit company). By the age of 25, Yuriy became the youngest Legal 500 lawyer from Ukraine, which he achieved by building a top-tier real estate practice in just two years.
It was then that Yuriy became obsessed with solving one of the biggest pains that lawyers have — contract processing.