Four Crucial Steps to Help Employers and Employees Sign Better Agreements

Feb 28, 2019 1:31:30 PM

In my previous blog, I shed light on the importance of changing the terms of engagement between employee and employer. However, both parties might be naturally reluctant  to this kind of drastic change, simply due to a fear of the unknown.

Four Crucial Steps to Help Employers and Employees Sign Better Agreements

The trigger

Our brain’s main function is to help us survive. Because of this, we prefer routine actions that we know are safe and risk-free. However, there are certain triggers that can cause the brain to leave its comfort zone, and take a new direction. Triggers like this can be external or internal.

An external trigger is outside of your control. It could be anything from an advert to someone bumping into you in the street. These triggers occur from the things around you, whereas internal triggers are typically be based on your own perception, and elicit strong and longer-lasting feelings of positive or negative emotion.

The main objective of a trigger is to push you to take an action. In the context of creating an employer-employee agreement, there are two external triggers that are particularly important — law and results.

I recommend offering two types of agreements for employees to fulfil these triggers; a flexible agreement that's based on results, and a traditional agreement that's based on attendance.


Flexible Agreement


A flexible agreement will allow employees to act more like business partners and mature professionals. This agreement will offer the employees full control over their time and actions.

With this agreement, the employee-employer relationship is governed by the results only, and employees will receive immediate rewards depending on whether  the right results are achieved. Employees don't need to get permission from their managers like a student in a class, and it can help to ensure that employers achieve

the results that they are investing in. This can give also give employees a sense of ownership, and a strong positive internal trigger. 

A traditional employment agreement is based on current labour laws, whereby the employer has full control over the employee’s time and the employee must stick to their workplace’s attendance system.

This risks triggering a negative emotional response for the employee, as they might miss social or family events while sticking to their contracted work hours.

This traditional agreement isn't always ideal for employers either, as it can become increasingly challenging to ensure that employees are using their time in the office effectively on work tasks. It can mean that employers follow a micromanagement strategy that isn’t sustainable in the current technological era.

The first trigger is a positive trigger, while the second trigger is a negative one. Combining them together will give you an excellent effect that will push both employee and employer to take the action into creating a results-based agreement.

With time,  employees  will  get used to freedom these kinds of results-based agreements bring, and the employer will have more time to build successful strategies. Over time, the old days of micromanaging will vanish.

Implementing the New employer-employee agreement

This section outlines the preliminary KPIs that you need to include in any flexible agreement. I recommend making it simpler at the beginning by only monitoring the deliverables, which we call the Purpose of Hire. Most companies try to measure every single result, and spend months if not years trying to find the optimal KPIs that govern results-based engagement.

Please read  our  blog  on  3  KPIs That Bridge the Gap Between Employer and Employee to lern more about this topic.

[ ] Deliverables and time [ ] Cost

[ ] Quality

Now, both employee and employer are following results-based engagement, which is ideal. However, this agreement should show immediate reward to ensure that both parties aren't reverting back to the old agreement. This can be easily reviewed by having a monthly review. In this review, the deliverables will be assessed and a score will be generated - it's vitally important to have a score, as a positive score

offers immediate rewards to both the employee and employee. Post positive review, the employee will get the flexibility promised, and the employer will get the deliverables that were requested.

Monthly reviews should continue and the scores should be accumulative so the employee will have measurable assets for their future. Even if shortcomings appear in one review, scores can stay high as employees can maintain good credit. 

I recommend having these results visible to all employees, as A Players will  feel proud and try to protect their status, while low-performing performers will work harder to avoid social pressure.

Warning: With this shift, an employer might lose some of B Players who are not willing to take ownership. There might also be some resistance and attempts of keeping the old system, but this is a response to any kind of overhaul, and the benefits for getting it right far outweigh the costs.

How can SimpleStrata help you?

SimpleStrata, integrated  with  iDenedi,  will help organisations embark on this  transformational journey. By announcing the implementation of iDenedi, you can start the trigger process and create increased motivation among your employees — and SimpleStrata gives you an easy way to create and manage your KPIs. Its scoring award-winning systems in the award stage and its mobile feature creates the crucial visibility that is required in the investment stage.

Get in touch to find out how we can improve your business practices. Fill out the form to enquire.