What are the objectives of contract Labour management?

Having to manage hundreds of contracts is no longer unfamiliar to leaders. However, how can one eliminate the management of piled-up and messy paperwork? How can a smart and effective entire contract management process be established? Next, we will explain objectives of contract for employee management and how to optimize operations related to contract management.

1. Learn the basics of contract management

A labor contract is the legal basis for an agreement between an employee and an employer regarding paid employment, working conditions, and the rights and obligations of each party in the labor relationship.

Therefore, in businesses, human resources managers always hope that they can manage each employee's contract effectively, ensuring employee rights and legal obligations to the employee. State organizations and agencies.

According to Record Nations, a typical employee must spend 30 - 40% of their working time searching for information stored in those filing cabinets. More than 70% of businesses will fail within 3 weeks if they seriously lose contracts or paper documents for any reason - mainly at the storage stage.

 


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2. Building an effective contract worker management process will help businesses

  • Contract is the basis for determining the rights and obligations of the parties when cooperating. Therefore, storing contracts will help the unit minimize the risks it may encounter.
  • Good contract for employee management, businesses can easily look up when necessary. Used in cases where it is necessary to check the implementation of terms agreed in the contract. Contract management will help prevent contracts from being misplaced, lost or damaged.
  • Easily hold each person accountable if something goes wrong
  • Draw lessons for future projects

3. Faro's 7-step contract management process

Contract management is always an important issue that requires high responsibility of the manager. To do this job well, managers need to master the contract management process.

You can refer to Faro's 7-step contract management process given below.

Contract management is always an important issue that requires high responsibility of the manager. To do this job well, managers need to master the contract management process.

You can refer to Faro's 7-step contract for employee management process given below.

Step 1: Trace the text

Before signing any contract, the business must clearly understand the main information of the contract and be able to manage it effectively such as:

  • What does this contract involve?
  • How long does it last?
  • Who manages and implements this contract?
  • Are the benefits of both parties when signing this contract compatible?
  • Does the contract ensure compliance with the law?
  • Value of the contract and transparency of commissions
  • Detailed information about products, services or contractual agreements
     

Step 2: Construction and signing

During the process of developing and signing the contract, you need to pay attention to the following issues:

  • Contract number
  • File number of the contract
  • Signing time
  • Value, appendix or attached documents of the contract

These are the bases for effectively classifying and managing contracts.

Step 3: Check the contract

To avoid bad problems with both the contract manager and the contract. When handing over the contract to the manager, this person must check all information recorded in the contract.

Step 4: Store and copy all types of documents and contracts

Businesses today often scan contract for employee management into multiple copies and store them in different departments and store soft copies on computers. Managing the contract in this way will prevent bad situations from occurring during implementation.

Step 5: Manage and add information in the contract

During the validity period of the contract, one or more terms may need to be added. This requires the contract management system to quickly store fully and consistently and report issues to relevant authorities in the contract.
 

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What is Contract Management? Improve Your Contract Management Process

Step 6: Annual report on the contract implementation process

Agencies, organizations and people responsible for managing contracts need to update their implementation process and report to competent people.

There are 2 types of reports:

  • Unexpected reporting: Unexpected problems that occur unplanned need to be reported to the person responsible as quickly as possible to resolve the problem.
  • Periodic reporting: can report weekly or monthly for the purpose of monitoring implementation progress and providing timely and effective solutions. Each business will have its own periodic reporting law.

Step 7: Check the contract implementation progress

After taking the steps in contract for employee management, the last thing businesses have to do is check and evaluate them. The inspection steps depend on the nature of each business to suit the contract. The larger the business, the more strictly the contract management. The more detailed and clear the management and inspection of contracts will be, the more likely it will be to avoid losses to the company's budget.

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Email: service.vn@farorecruitment.com

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