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Contract Management for Human Resources – A Quick Guide with an Org Chart

Contract Management for Human Resources – A Quick Guide with an Org Chart

If you are new to the HR department of your organization, you will definitely need to handle lots of employees’ contracts. Now, let’s find out the key advantages of contract management for human resources and how to manage your employees’ contracts.

What is HR Contract Management?

Generally, human resources contract management is the process of operational contract management within an organization. It is similar to the concept of sales or procurement contracts, and it also shows the business relationship between employees and organizations with certain terms and conditions. Managers should consider human resources contract management based on a critical and strategic point of view. Here is an example of the contract management organizational chart. You can see the contract start and end dates on it.

contract management hr organizational chart

Why We Need Contract Management for HR?

Here are several key advantages of it:

Decreases Employee Turnover

Effective human resources contract management can weak the burden on human resources functions and speed up the overall contract drafting process.

Help to Deal with Organizational Change

Contract management can also help managers who need to easily access accurate details about the human resource factors of their organization. For example, the organizational termination terms, the length of service and many more.

Help to Handle with Legal Issues

Organizations may face litigations and disruption during their human resources management process. Contract management for human resources can reduce the expenditure on additional legal issues.

Improve Training Process

Talent employees are the treasure of an organization. Contract management for HR can enhance the training process of employees.

Improve Recruitment Process

HR Contract management can make sure that job and task duties are correctly stated, which will further benefit the process of selecting suitable candidates.

How to Carry out Human Resources Contract Management?

Managing your employees’ contract could be difficult and time-consuming due to the internal move within an organization. However, a practical solution can be described as below:

  1. Review your existing staff contracts; make any updates if necessary;
  2. Compare the key aspects (differences and common points) between the old and new versions of your employees’ contracts;
  3. Let your employee review their updated contracts and leave any feedback or suggestions if possible;
  4. Improving your employees’ contracts based on their continuous suggestions and your corporate strategies;

How to Create a Contract Management Organizational Chart?

Creating such an org chart is easy even if you are a diagramming beginner. Simply open this easy org charting creator with data importing feature, auto-create slideshow function, and the advanced view options. Click on the Views Options>Contract as shown below to edit details. You can also leave any comments, notes, hyperlinks, and attachments on your organizational chart and send/share it with your employees. contract management org chart

Final Thoughts

In conclusion, contract management is crucial to human resources managers who are searching for better solutions to decrease risk and cost. Free download this professional and easy org chart creator to have a try right away!

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