The role of HR in any company is very significant. And one of HR’s responsibilities is to handle the different employee contracts. However, keeping track of all the contracts involved can be challenging when your company has many employees. Luckily, there is a more efficient way HR can fulfill its duty of handling contracts, and that is through a contract management system.
Why Is Contract Management Important?
Contract management is essentially the process of handling contracts, from their creation to eventual termination. Since manual contract management can be a pretty time-consuming task, a contract management system can help HR work more efficiently, maximizing financial performance.
It can also help mitigate risks, such as non-compete clause and non-disclosure agreement breaches, wrongful termination, and conflicts between employers and employees. So, with effective contract management, an organization can better handle legal issues involving the contract and prevent the problem from getting bigger.
Contract management can also improve the recruitment and training processes. And if there are any organizational changes, managers can have easy access to accurate information surrounding the contracts.
How Does a Contract Management System Work?
With a contract management system, the organization can better examine a contract and make the necessary changes. It also allows both parties to see these changes clearly and even compare them to the original contract. Through the system, you can also send out these contracts for the employees to review while ensuring this sensitive information is protected and secured.
When reviewing the contract, the employee can flag any queries, make comments, and add amendments using the contract management system. It also allows HR to keep track of these comments and incorporate the appropriate changes. And just like that, HR can send the amended contract to the employee for acceptance.
Contract Management System Benefits
Aside from saving time and effort by reducing manual processes, a contract management system can also provide additional benefits. For one, a contract management system can make things more organized through its ability to integrate with the existing systems you may have in your organization. This allows an organization to improve HR workflow and streamline paperwork.
Contract management systems also provide more security for your contracts. Since contracts contain sensitive information, you don’t want to send them through less secure platforms, such as email and other messaging applications. Through a contract management system, you can easily send contracts back and forth without worrying about data privacy. It also allows HR to communicate new policies and changes to the employees more efficiently.
Contract management systems also allow for digital transparency. They can reduce ambiguity and ensure concise end-to-end visibility. And since it’s all digital, it will enable companies to be more eco-friendly by reducing paper use.
Contract management is one of the more time-consuming tasks HR has to handle. But with a contract management system, HR can work more efficiently and save the company time and resources. A contract management system can also minimize legal risks, reduce manual processes, protect sensitive information, provide easy integration and digital transparency.
Deliver HR services more efficiently with the help of Anapact. We are an automated contract management system built for small and mid-sized businesses. With our easy-to-use software, we can help reduce risk, ensure compliance, and make the most of your contract documents. Get a demo now!