Contract negotiation and offer management
Contract negotiation and offer management
Contract Negotiation: Definition
- Contract negotiation is a discussion between the employer and candidate concerning the terms and conditions of employment.
- It aims to reach a mutually agreeable contract before employment begins.
Purpose of Contract Negotiation
- Facilitates discussion about job expectations, pay rates, working hours, and other conditions.
- It ensures that both parties are in agreement and receive equal benefit from the employment relationship.
- Helps avoid future conflicts and misunderstandings by clarifying everything up front.
Process of Contract Negotiation
- Discussion and negotiation of salary, benefits and job specifics.
- The candidate may accept the offer, decline the offer, or begin negotiation to adjust the terms until both parties are satisfied.
- Once agreed, the terms are put into a formal employment contract.
Elements Negotiated in Contract
- Salary – Compensation for work, often a key point of discussion.
- Working hours – Including shift patterns, flexibility and weekend work.
- Job Role – Duties and responsibilities, opportunities for promotion and development.
- Benefits – Such as private healthcare, pension contributions, bonuses or company vehicles.
Importance of Contract Negotiation in Recruitment
- Establishes the terms of employment, making responsibilities, rights, and benefits clear to both the employer and employee.
- Builds an open relationship between the candidate and employer, fostering positivity and trust from the outset.
- May influence a candidate’s decision to accept the job offer, making it a crucial step in securing the right candidate.
Offer Management: Definition
- Offer Management is a recruitment process of extending job offers to the selected candidates.
- This stage comes after the recruitment and selection processes, once the organisation has decided who they want to hire.
Process of Offer Management
- The candidate is informed about the selection and made a formal job offer.
- Details such as commencement date, job role, salary and benefits are discussed.
- If the candidate accepts the offer, they move onto contract signing. If they decline, the organisation might extend the offer to the next suitable candidate.
Key Points to Remember
- Contract negotiation and offer management are key in securing the best candidates for the organisation.
- Clear communication and mutual agreement during contract negotiation and offer management are essential to a positive working relationship.
- Paperwork should be finalised promptly after agreement, and a formal contract should be issued to ensure all parties understand their roles and responsibilities.