As management expert Peter Drucker says, “You can’t manage what you can’t measure.” Several people asked me what should be included in an employee contract. Here are the top 8 items you want to include:
- Employee’s Name.
- Start Date of Employment.
- Evaluation Date (I recommend a 3 day and a 30 day evaluation).
- Starting Pay Scale.
- Expected Days and Hours on Duty (including if the employee is expected to arrive early to prepare for opening or closing).
- Primary Duties: consider breaking down into daily and weekly duties as appropriate.
- If those duties include minimum required sales goals, billable hours, etc. that needs to be specified, including timeframes for achieving them.
- Other Duties: any other duties the employee may be expected to fulfill on an as needed basis.
- Benefits and when they become active (for example, if paid holiday time starts after 90 days employment).
The point of a detailed employee contract is to provide clear communication between the employee and employer of all expectations. You and your new hire need to have IN WRITING what each expects of the other – you need to make it clear what you want them to achieve, and they need to be clear on what the pay and benefits are for achieving success.
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