You may be thinking…what the heck is a position contract anyway? We're going to answer that in today's post, and it's something you won't want to miss.
Years ago, our management team here at Two Roads read a book together called “E-myth” by Michael Gerber. We will discuss this book in another blog post one day, so I won’t go into details here, but let me just say, if you work in a small business, then READ the book!
(In fact, here are 13 audiobooks every entrepreneur should "read!")
Now, back to that big question:
One of the concepts in this book is that every position in your company should have a “position contract” associated. This includes an intern all the way up to the CEO. And what is a position contract? It's a contract stating the responsibilities expected from someone holding the position.
The contract is reviewed by the position holder as well as the CEO.
Now that we've answered "what is a position contract?" it's time to cover your next question: "Do I need one?"
Take a look at how these contracts can help managers and employees and decide from there.
This contract lays out CLEAR expectations for the position holder and what they are expected to do to fulfill the position. It leaves no room for ambiguity.
This contract is the bar that they can measure up to. And it also means that at any given point in time, they know where they stand in their employment. “If I am doing everything in this position contract, then I know I am successful in this position, and I am doing what is needed to help this company.”
This kind of clarity is a quality virtually every employee will appreciate, and by taking out the guesswork of their job, it makes your managerial role lighter too.
Management can be a very emotional job when it comes to bringing corrective action to an employee.
Having a position contract will give you clear guidelines by which to correct your employee. “You said you would do X reps, and you just aren’t meeting those expectations. This needs to change by X date or we may need further corrective action. How can I help you meet those expectations?”
These conversations not only help you as a manager, but they go a long way in supporting the people you manage, too. It can even help you minimize employee turnover! For more on that, read this post next.
Have your team members all work up a position contract for their job. You may be surprised by the results.
Some employees may not have ever had a firm grasp on what their responsibilities were in the first place. It may give your entire team a new sense of ownership and less confusion about what they should or should not be doing.
We've covered how these contracts can help small business managers (and their employees) in a number of ways. Another advantage you can give your small business is outsourcing your bookkeeping services.
With your books taken care of, you can get back to focusing on the hands-on managerial work and business operations, rather than being buried under a pile of receipts and invoices. And Two Roads is here to help! We have a passion for all things small business, but nothing excites us quite like bookkeeping. Let us put our skills to work for your business.
Click here to get a price and learn more.
Then try one of these posts next:
5 Fundamentals of a Successful Financial Business Strategy
5 Bookkeeping Questions Every Business Owner Must Be Able To Answer
Hey Small Business Owner! Are You Trying to Do Too Much?
This post was first published in 2013 but was updated in 2021 just for you.