Advice to an Executive who is about to Negotiate an Employment Contract
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What advice would you give to an executive who is about to negotiate an employment contract?
Negotiating an employment contract is very important for any organization. This is because it forms the basis of the relationship between the employer and the employees. Therefore, an executive who wants to negotiate an employment contract must make crucial considerations before reaching an agreement.
First, the executive will have to consider the cost implication of the employment contract to the organization. Due to globalization and the rising competition in the business sector, employers have to keep costs down including the wages and benefits of the employees (Cascio 2013). Therefore, a good employment contract will be that one that ensures that the wages and the benefits of the employees are not inflated to such an extent that the company cannot sustain its operations. Such a contract should also take into consideration the rights of the workers in making wages and benefits agreements.
Second, the role of the unions has to be taken into account while making an employment contract because when workers come together, they gain strength from numbers and hence “influence the nature of their employment” (Cascio 2013). In this regard, as Cascio (2013) states, companies need to understand the legal and employment implications of different systems that underlie the infrastructural and operations of unions (Cascio, 2013).
Lastly, the discipline of workers has to be enshrined in the employment contract. Cascio (2013) argues that absenteeism, poor performance, and rules violation are bound to arise. Therefore, the contract must take into account the discipline of the workers at the workplace. This is despite the fact that some of these workers are in labor unions.