Employment Terms and Conditions

Clearly communicating the terms and conditions of employment is essential when you make a job offer. An applicant needs to know what to expect if he or she accepts a position with your business. Although pay is usually the primary factor in a person's decision to accept a job, other factors play a role. To avoid disappointment on either side, manage the person's expectations regarding what it will be like working for you by disclosing all relevant information at the time you make the job offer.

In addition to pay and other employment terms that might be subject to negotiation, several other topics should be discussed during the hiring process. Many of these are obvious, such as the work schedule. Nevertheless, it's a good idea to address areas where there is the potential for conflict if you and your new employee don't see things eye-to-eye. If you have an employee handbook, there may not be much that you need to discuss prior to the hire. If you don't, make sure you discuss the following:

Where and when services will be performed
Important work rules (safety and sanitation, how to handle cash, dress codes, attendance)
The timing and payment of wages
Scope of, and eligibility for, health insurance, time off, retirement, and other employee benefits
Performance reviews and salary adjustments
Issues specific to your particular business

Based on the nature of your business, some of these items may be more important than others, and some may not apply at all. For example, a dress code may be critical in a retail business, but not an issue at all in a business where employees routinely telecommute. The objective is to avoid surprises; new employees may feel cheated if the work environment differs from what they expect. You may not have misled a new employee during the hiring process, but the failure to disclose relevant employment terms may create that impression. As in all relationships, it's best to get off on the right foot when you bring a new employee on board.