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6 Powerful Tips for Successful Contract Management

6 Powerful Tips for Successful Contract Management

When hiring new human resources for your company, some aspects of formalizing this process tend to be messy, leading businesses to waste precious time on something that is supposed to be a straightforward process. If the recruiter neglects aspects of the contract, or potential legal voids are left unsolved, this neglectful performance will inevitably produce a significant impact on your company.

So how can you ensure that this managerial process meets the needs of both employee and recruiter? It goes further than a simple document filled with pre-settlements and clauses overseen by lawyers, but a precise method to cover all the aspects of an agreement; therefore, HR professionals ought to have cutting-edge managerial skills to provide a valid performance in handling not just the legal document, but the company’s relationship with the hired newcomer.

Here are some effective tips to improve your organization’s recruitment performance.

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1. Don’t leave any doors open

Good contract documents are those that include performance indicators as contractual obligations; and by asserting this point your potential supplier will know beforehand what is expected of him/her, as well as setting ground for sanctions in case the provider’s work isn’t what it’s supposed to be.

Social media conduct clauses should also be included to prevent sensitive data leak, but also to protect your company’s reputation, as employees commonly engage in topics like politics, sports, and social causes without even realizing they automatically label themselves as part of your organization when they add their workplace on their social media profile.

2. Set an escape route

Relationships tend to deteriorate with time, and companies are just the prime example of that. It could be labelled as a smart move to establish your “plan B,” in case things go wrong by stating all the elements that can lead both parties to contract annulment. It’s a confidence boost for the employee, as you are saying beforehand the terms and conditions that can end the contract if needed, but also cover your back from potential court audiences.

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3. Keep tabs on what both parties have agreed

The basis of a good managerial performance relies on not just signing a contract, but doing a constant follow up of your employee’s conduct. By doing this, you are sticking to the contractual obligations that were established, as well as securing your organization’s interests. Schedule monthly reunions with your recruited staff, and provide a valid checklist of the elements that are not going as expected, as well as counteractions to solve these issues; the sooner, the better.

Set measurable goals for both recruiter and employee; that is the way healthy businesses work.

    Photo courtesy of Tim Gouw

    4. Remind yourself that contracts have expiration dates

    This is a point commonly neglected. People tend to archive contracts without even bothering to look at the actual contract end date; and, since all contracts should have start and end date, as relationship terms naturally change with time, this unsafe practice leads the organization to conflicts between both parties, as technically the supplier isn’t even working under legal terms, and his/her situation should be reviewed as soon as possible.

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    5. New times require new resources

    We are in 2017, so a pen and notebook are not acceptable methods for tracking contractual details, nor for managing several deals with long terms. With the advantages in Enterprise Contract Management Solutions, software can offer us all the elements needed to keep tabs on the documents produced. Plus, it also provides analysis tools for HR managers to track milestones and obligations, generate reports, and much more.

    6. Analyze behaviour prior to settling a contract

    You want this whole ordeal to be a success, right? First of all, you need to remind yourself that contracts are not just legal obligations, but also reflections of a formal setting between two parties. Those parties aren’t necessarily driven by the same motivations when looking for success.

    By doing some easy, relaxed questions during the interview process, you can pinpoint warning elements – that can be both positive or negative – about the performance of your future employee. If unsure, request help from a professional to give your organization an insight about these analyses.

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    Featured photo credit: Unsplash via pexels.com

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    Last Updated on September 30, 2020

    Effective vs Efficient: What’s the Difference Regarding Productivity?

    Effective vs Efficient: What’s the Difference Regarding Productivity?

    When it comes to being effective vs efficient, there are a lot of similarities, and because of this, they’re often misused and misinterpreted, both in daily use and application.

    Every business should look for new ways to improve employee effectiveness and efficiency to save time and energy in the long term. Just because a company or employee has one, however, doesn’t necessarily mean that the other is equally present.

    Utilizing both an effective and efficient methodology in nearly any capacity of work and life will yield high levels of productivity, while a lack of it will lead to a lack of positive results.

    Before we discuss the various nuances between the word effective and efficient and how they factor into productivity, let’s break things down with a definition of their terms.

    Effective vs Efficient

    Effective is defined as “producing a decided, decisive, or desired effect.” Meanwhile, the word “efficient ” is defined as “capable of producing desired results with little or no waste (as of time or materials).”[1]

    A rather simple way of explaining the differences between the two would be to consider a light bulb. Say that your porch light burned out and you decided that you wanted to replace the incandescent light bulb outside with an LED one. Either light bulb would be effective in accomplishing the goal of providing you with light at night, but the LED one would use less energy and therefore be the more efficient choice.

    Now, if you incorrectly set a timer for the light, and it was turned on throughout the entire day, then you would be wasting energy. While the bulb is still performing the task of creating light in an efficient manner, it’s on during the wrong time of day and therefore not effective.

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    The effective way is focused on accomplishing the goal, while the efficient method is focused on the best way of accomplishing the goal.

    Whether we’re talking about a method, employee, or business, the subject in question can be either effective or efficient, or, in rare instances, they can be both.

    When it comes to effective vs efficient, the goal of achieving maximum productivity is going to be a combination where the subject is effective and as efficient as possible in doing so.

    Effectiveness in Success and Productivity

    Being effective vs efficient is all about doing something that brings about the desired intent or effect[2]. If a pest control company is hired to rid a building’s infestation, and they employ “method A” and successfully completed the job, they’ve been effective at achieving the task.

    The task was performed correctly, to the extent that the pest control company did what they were hired to do. As for how efficient “method A” was in completing the task, that’s another story.

    If the pest control company took longer than expected to complete the job and used more resources than needed, then their efficiency in completing the task wasn’t particularly good. The client may feel that even though the job was completed, the value in the service wasn’t up to par.

    When assessing the effectiveness of any business strategy, it’s wise to ask certain questions before moving forward:

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    • Has a target solution to the problem been identified?
    • What is the ideal response time for achieving the goal?
    • Does the cost balance out with the benefit?

    Looking at these questions, a leader should ask to what extent a method, tool, or resource meets the above criteria and achieve the desired effect. If the subject in question doesn’t hit any of these marks, then productivity will likely suffer.

    Efficiency in Success and Productivity

    Efficiency is going to account for the resources and materials used in relation to the value of achieving the desired effect. Money, people, inventory, and (perhaps most importantly) time, all factor into the equation.

    When it comes to being effective vs efficient, efficiency can be measured in numerous ways[3]. In general, the business that uses fewer materials or that is able to save time is going to be more efficient and have an advantage over the competition. This is assuming that they’re also effective, of course.

    Consider a sales team for example. Let’s say that a company’s sales team is tasked with making 100 calls a week and that the members of that team are hitting their goal each week without any struggle.

    The members on the sales team are effective in hitting their goal. However, the question of efficiency comes into play when management looks at how many of those calls turn into solid connections and closed deals.

    If less than 10 percent of those calls generate a connection, the productivity is relatively low because the efficiency is not adequately balancing out with the effect. Management can either keep the same strategy or take a new approach.

    Perhaps they break up their sales team with certain members handling different parts of the sales process, or they explore a better way of connecting with their customers through a communications company.

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    The goal is ultimately going to be finding the right balance, where they’re being efficient with the resources they have to maximize their sales goals without stretching themselves too thin. Finding this balance is often easier said than done, but it’s incredibly important for any business that is going to thrive.

    Combining Efficiency and Effectiveness to Maximize Productivity

    Being effective vs efficient works best if both are pulled together for the best results.

    If a business is ineffective in accomplishing its overall goal, and the customer doesn’t feel that the service is equated with the cost, then efficiency becomes largely irrelevant. The business may be speedy and use minimal resources, but they struggle to be effective. This may put them at risk of going under.

    It’s for this reason that it’s best to shoot for being effective first, and then work on bringing efficiency into practice.

    Improving productivity starts with taking the initiative to look at how effective a company, employee, or method is through performance reviews. Leaders should make a point to regularly examine performance at all levels on a whole, and take into account the results that are being generated.

    Businesses and employees often succumb to inefficiency because they don’t look for a better way, or they lack the proper tools to be effective in the most efficient manner possible.

    Similar to improving a manager or employee’s level of effectiveness, regularly measuring the resources needed to obtain the desired effect will ensure that efficiency is being accounted for. This involves everything from keeping track of inventory and expenses, to how communication is handled within an organization.

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    By putting in place a baseline value for key metrics and checking them once changes have been made, a company will have a much better idea of the results they’re generating.

    It’s no doubt a step-by-step process. By making concentrated efforts, weakness can be identified and rectified sooner rather than later when the damage is already done.

    Bottom Line

    Understanding the differences between being effective vs efficient is key when it comes to maximizing productivity. It’s simply working smart so that the intended results are achieved in the best way possible. Finding the optimal balance should be the ultimate goal for employees and businesses:

    • Take the steps that result in meeting the solution.
    • Review the process and figure out how to do it better.
    • Repeat the process with what has been learned in a more efficient manner.

    And just like that, effective and efficient productivity is maximized.

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    Featured photo credit: Tim van der Kuip via unsplash.com

    Reference

    [1] Merriam-Webster: effective and efficient
    [2] Mind Tools: Being Effective at Work
    [3] Inc.: 8 Things Really Efficient People Do

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