For the first time, Florida has more jobs than New York. This is a sign of a thriving and growing job market. With increased available jobs, companies face the new challenge of managing a large number of incoming employees. Using employment contracts can provide your company with several benefits. From clear expectations of roles to an ability to prevent disputes, employment contracts provide customized solutions for your business.
1. Employee Security
Your employees want to feel confident in their position with your business. Signing an employment contract can give them a sense of security. The employment contract will outline the position’s rights, responsibilities, and role within the company. It will also outline the salary, benefits, bonuses, and any other compensations provided to the employee.
The contract can also define performance standards and methods for determining if the employee met those standards. That way, there are no surprises for the employee about how their performance will be evaluated.
Having an employment contract demonstrates your commitment to the employee. With clear expectations and incentives set, you will see increased job satisfaction and reduced turnover.
2. Defining Employer and Employee Roles
The employment contract is the appropriate place to define the employee and employer roles. It should address all aspects of the roles. It begins with training, development, and potential future growth. It then should define what the role’s responsibilities include. Employees will feel more committed to their future with the company by having their training and growth outlined in writing. For the employer, it defines what the employer will do and how it plans to develop its employees.
3. Protect Trade Secrets and Maintain Confidentiality
You can protect your company’s intellectual property by including confidentiality agreements in your employment contracts. This could include protection for sensitive information, trade secrets, or proprietary information. If your employees create original work as a part of their employment, you will need to include who owns the finished product.
4. Prevent Disputes
No one sets out to form a new employment relationship or contract with a plan for it to fail or end in conflict. However, you need to hope for the best and plan for the worst. The employment contract is an opportunity to prevent and diffuse disputes. Start by defining the conditions and circumstances that justify termination. Include the termination process and available severance packages. This protects both parties and defines the separate process.
There should also be terms that define the conflict resolution process. There should be a legal framework that protects both parties in the dispute. Decide how the dispute resolution will work through by choosing arbitration, mediation, or litigation. Both parties agree in advance by outlining this process in the employment contract. This streamlines the dispute resolution process.
5. Professionalism and Credibility
Using a professionally drafted employment contract projects an air of professionalism and credibility. It shows that you take the working relationship seriously. Professional employment contracts demonstrate your company’s commitment to transparent and equitable employment practices. Conducting your business professionally in accordance with the law builds trustworthiness with employees, clients, and business acquaintances.
6. Comprehensive Records
Using employment contracts can make managing your employees and business easier. You will have a single comprehensive document for each employee. Each one will outline everything relevant to each employee’s position and employment with the company. That way, if you seek funding, a buyout, or a merger, the potential investor will have an easier time evaluating the potential value of your company. Having a single source also makes it easier for you to reference should a situation arise.
Start Using Employment Contracts
There is no better time than the present to start using employment contracts. An experienced lawyer can assist you in drafting a contract that addresses your needs. As you hire new employees, have them review and sign your employment contract. Then, keep a copy for your records and future reference.
Schedule a consultation today and let our team of attorneys create employment contracts for your business.
