Automated contract creation
A lot of time can be wasted in preparing an employment contract. In that time, the valuable candidate may already have signed a contract for another company. In the war for talents, the key is to be as fast as possible.
HR software, which focuses on usability and is tailored to the users’ needs, enables HR and management to create a complete and legally binding employment contract with just a few clicks.
Create HR documents in 15 seconds
To create a legally valid employment contract, it is necessary to draft essential terms without errors and in accordance with the applicable law. This is often not easy. If mandatory information / terms are not taken into account, the employment contract may not be valid.¹
The decision to delegate this HR process to a smart HR software will save valuable time. The HR software is provided with all relevant regulations as well as necessary wording and terms. The manager can hand over a signed employment contract to the potential new employee during the job interview.
Many HR departments today still work with document templates in which person-related data, job profile, job description, weekly working hours, etc. must be entered manually. In most cases, this process is only initiated after the HR department has decided on an applicant. If the employment contract contains all relevant modules, the document is sent through the entire company to receive all necessary approvals before the contract can be sent to the new employee. It can take a few days, before the employment contract is signed and returned to the company and then stored in the employee’s file.
Especially in companies with high fluctuation and jobs that must be replaced several times within a short time, the preparation of the employment contracts takes a lot of time. Time that both, the HR department and the manager, could invest in other useful tasks.
However, the creation of an employment contract can also be managed in just a few seconds using digital technology! Here, the process of contract creation can be triggered by both, the HR department and the manager. Personal data such as name, address etc. are automatically extracted from the HCM system. Individual data such as contract duration, weekly working hours etc. are evaluated and automatically added using smart algorithms. These then only need to be checked and, if necessary, adjusted by the manager. The same applies to the job description, which is taken over from the onboarding system such as SAP SuccessFactors.
Only data such as the salary to be negotiated and individual bonuses must be entered manually during the interview. By using an electronic signature, the employment contract can be signed by both parties during the job interview.
The employment contract is filed in the newly created digital personnel file of the recruited employee immediately after it is signed. The employee’s applicant record is migrated to the digital personnel file. Supplemented by other relevant documents, such as the privacy declaration or a signed security briefing, all employee-related HR documents are collected in this digital file. Here, HR, the relevant manager and the employee himself can access the documents due to an individual authorization concept. This can be done simultaneously and is independent of location or device. Even from the home office, all process participants can view, edit or create HR documents such as the employment contract.
HR software that focuses on meeting the needs of the user and combines functionality with an attractive user interface, HR documents such as the employment contract can be created quickly and easily. An automatic document generation function offers the possibility to create an employment contract based on the current corporate design with just a few clicks. Letters of bonus, information or confirmations can also be created in the same way.
In addition to saving time and work for HR and managers when creating an employment contract, an accelerated, digital onboarding process has a positive effect on the company image and employee satisfaction. If the new employee does not have to wait weeks for his new employment contract, this increases the employee’s satisfaction and commitment to his new employer.
¹ https://www.advocado.de/ratgeber/arbeitsrecht/arbeitsvertrag/arbeitsvertrag-erstellen-rechte-und-pflichten-als-arbeitgeber.html, 27.07.2020, 10:01