Importance of Employment Contracts and Employer Branding

This article discusses the importance of employment contracts and employer branding in the modern business world. It covers the elements of employment contracts, significance of employer branding, and its benefits.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author Note

1
HUMAN RESOURCE MANAGEMENT
Student ID
The importance of the effective formation of the employment contracts is observed to
increase in a significant manner in the modern business world. With significant amount of
transformation in the labour and employment legislations, majority of the companies
operating in the modern world of business are facing the necessity of effectively managing
the employment contacts and including the relevant provisions in accordance to the modern
labour and employment legislations. The paper discusses regarding the various elements of
the employment contracts and along with that, the paper also portrays the importance of it in
the effective management of employer employee relationship. Other than this, the paper
provides an important analysis regarding the significance of the employer branding and
identifies the benefits that employer branding is capable of providing to the organizations.
Along with this, the paper also shows the connection of the concept of employer branding
with the organizational goals.
Importance of the elements of the Employment Contract:
Job specification:
One of the important elements of the employment contract is observed to be definition
of the position. The human resource managers of the companies have the necessity to include
a proper and detailed definition of the position for which they are conducting the recruitment
procedures. The importance of defining the job position becomes important for the human
resource managers of the companies to effectively communicate the responsibilities of the
candidates, interested in managing that particular position and along with that, the efficient
communication regarding the job requirements becomes necessary for the human resource
managers to actively aware the candidates regarding their operational activities (Morgeson,
Brannick and Levine 2019). The definition of the employment contract should be precise and
easy to understand for the employees of the companies as it is important for the companies to

2
HUMAN RESOURCE MANAGEMENT
Student ID
make sure that there is no existence of any sort of doubts in the mind of the employees
regarding their operational activities.
Length of Agreement:
The length of agreement is one of the important element of the employment contract
as it provides the information regarding the time span for the association between a particular
employee and the employer (Bordia et al. 2017). Considering the legal aspect, the length of
employment is significantly important for any employer and employee as it provides the
much required certainty regarding the service of both the parties. In the modern world of
business, the demands of the efficient and skilled employees is seen to increase in a
significant manner and under such situation, majority of the employees have a tendency of
joining new companies which have the potential of providing better packages in terms of the
monetary compensation and the other esteem needs. Hence, the discontinuity in the services
of a particular efficient employee has the possibility of affecting the previous company in a
notable manner. However, with the formal agreement between the employee and the
employer with precise inclusion of the length of agreement, the companies have the chance to
eliminate the concern regarding the instantaneous turnover of the employment. Hence, the
significance of the length of agreement is observed to be pretty prominent in improving the
sustainability and the strength of the workforces. Other than this, the employees are advised
to sign the terms and conditions of employment which signifies the probable legislations that
the employees are required to obey.
Performance Expectations and Requirements:
The employment contract includes precise information regarding the performance
expectations of the employees. In the contract between the employee and employer, the
inclusion of the performance expectation from the part of the employer provides clear

3
HUMAN RESOURCE MANAGEMENT
Student ID
information regarding the probable production that a particular employee is expected to
deliver and the amount of quality that needs to be there in the performances of the employees.
The element is an integral part of the operational activity of the company and is directly
linked with the strategic objective of the companies. For example, if a company has the
strategic objective of delivering 100000 unit of their product per month with a workforce of
1000 then the performance expectation from the part of the managers of the company for
each of the employees of their workforce will be 100 unit per month.
Wage and Work Time Characteristics:
Considering the employment contracts, the formation of the wage characteristics is
significantly important for the company as it provides a clear idea to the employees of the
company regarding the value of their efforts. Along with this, the employment contract
includes the provisions for the payments of the overtime. With a precise look back at the
increasing demands of the industry, it is visible that majority of the companies have the
provisions for the over times and under such situation, the effective elaboration regarding the
procedures of the over time is considered to be an important part of the contract of
employment (Pollart et al. 2015). Other than this, the companies face the necessity of
formulating an appropriate wage and work time characteristics in accordance to the industry
standards, for their employees.
Rewards and Benefits:
The excellent ability of the human resource managers in motivating the employees for
the performance improvement in both the aspect, production and quality, is observed to be
one of the important success factors for the companies in improving the service excellence
and efficiency of the company. Under such situation, majority of the modern companies are
observed to introduce attractive rewarding plan for their employees. Hence, various

4
HUMAN RESOURCE MANAGEMENT
Student ID
companies are observed to include all sorts of information regarding the rewards through the
contract of employment so that they be able to attract skilled and efficient candidates.
Ethics Policy:
One of the important section of the contract of employment is seen to be the ethics
policy. The formal name of the policy is code of ethics. In the modern business industry, it is
understandable that the companies face the necessity of maintaining their business reputation
as it influences the purchase intention of the customers. The ethical practices inside the
company has the potential to improve the corporate image of the company which effectively
helps it in influencing the purchase intention of the customers (Lawrence and Weber 2014).
On the other hand, the unethical business practices from the part of the employees of the
company has the potential to place the organization in form of reputational damage and
monetary fines as well. Hence the inclusion of the ethics plays a significant role in promoting
the ethical, business practices inside the organizations.
Employer Branding:
Significance:
The concept of the employer branding is significant for the modern companies as it
describes the reputation of the company along with the popularity of it from the perspectives
of a potential employer (Roper et al. 2013). Along with that, the significance of the employer
branding is pretty prominent with the description of it regarding the values that the company
provides its employees. Other than this, the employer branding is considered to be a process
which effectively helps a company in developing and maintaining the employer brand. In

5
HUMAN RESOURCE MANAGEMENT
Student ID
addition to this, the employer brand plays the role of a mirror for the company’s value
proposition.
Benefits:
Considering the benefits with the employer branding, the companies have the
possibility of creating larger values amongst the employees for the company. The employer
branding becomes crucial for the companies in retaining the employees as the reputation of
the company are expected to be a significant motivator for the employees in going for an
association for a longer period of time (Lievens and Slaughter 2016).
Other than this, the employer branding helps the employees to gain the much required
self –belief for successfully conducting their operational activities inside the organizations.
Along with that, it plays a crucial role in the improvement of the self -esteem of the
employees which not only increases the confidence level of the employees but also improves
the service excellence.
Apart from this, the employer branding helps the companies in a significant manner in
attracting the talented candidates (Elving et al. 2013). Considering the significant demands of
the labour and employment market, it is understandable that the companies are facing
significant requirement of the skilled and experienced employees and under such situation,
the strong business reputation and a transparent corporate image have the capability to
provide the much required competitive advantage in recruiting the skilled candidates.
Meeting the organizational goals:
The main objective of the companies with the employer branding is to describe the
reputation and the popularity of the company through the employees. The major concern for

6
HUMAN RESOURCE MANAGEMENT
Student ID
the companies of the modern business world is seen to be the recruitment of the skilled and
efficient employees for the effective management of the business operations. Other than this,
the service excellence and the quality of the employees is considered to be an important
factor for the companies in creating value for the customers and in developing the much
required customer satisfaction. Under such situation, the a company with strong employer
branding plays a significant role in attracting the best talents and influences them for serving
the company so that it increases the capability of the company in delivering the much
required quality and meeting the organizational objectives of the company may that be
regarding the quality or production in an efficient manner.

7
HUMAN RESOURCE MANAGEMENT
Student ID
References:
Bordia, P., Restubog, S.L.D., Bordia, S. and Tang, R.L., 2017. Effects of resource availability
on social exchange relationships: The case of employee psychological contract obligations.
Journal of Management, 43(5), pp.1447-1471.
Elving, W.J., Westhoff, J.J., Meeusen, K. and Schoonderbeek, J.W., 2013. The war for
talent? The relevance of employer branding in job advertisements for becoming an employer
of choice. Journal of Brand Management, 20(5), pp.355-373.
Lawrence, A.T. and Weber, J., 2014. Business and society: Stakeholders, ethics, public
policy. Tata McGraw-Hill Education.
Lievens, F. and Slaughter, J.E., 2016. Employer image and employer branding: What we
know and what we need to know. Annual Review of Organizational Psychology and
Organizational Behavior, 3, pp.407-440.
Morgeson, F.P., Brannick, M.T. and Levine, E.L., 2019. Job and work analysis: Methods,
research, and applications for human resource management. Sage Publications.
Pollart, S.M., Dandar, V., Brubaker, L., Chaudron, L., Morrison, L.A., Fox, S., Mylona, E.
and Bunton, S.A., 2015. Characteristics, satisfaction, and engagement of part-time faculty at
US medical schools. Academic Medicine, 90(3), pp.355-364.
Roper, S., de Carvalho, L.V., Guzman, F., Sivertzen, A.M., Nilsen, E.R. and Olafsen, A.H.,
2013. Employer branding: employer attractiveness and the use of social media. Journal of
Product & Brand Management.