Common Mistakes
The most common mistake when evaluating job offers is failing to focus on the three key factors. The second most common mistake is "backing into a job"-acting out of negative motivation or desperation. People are most likely to make this mistake when they are extremely dissatisfied in their present jobs, when they are about to be terminated, or when they have been unable to find work. In trying to get out of a tough situation, candidates sometimes take the first job that comes along. For example, one candidate I know had worked for a "screamer." His primary criterion in finding a new position was to work for an organization that had fairly calm management. Where does his reasoning fit within the three criteria? It doesn't. By concentrating on the three important factors, he came to realize that eliminating the screamer was not a sound basis for selecting a new job.
Love 'Em or Leave 'Em
I find in my practice that if at least two of the three factors are judged by the candidate as positive, then the candidate will probably accept the offer from the client company. My advice reflects that observation. If you find that two of the three factors are very positive, then accepting the position will probably be a good move. If only one factor is positive, pass and work toward getting a different, presumably better offer. If all three factors are positive, jump at the opportunity. If you are having trouble making the decision, you probably need more information in the area where you are having problems. For example, if you are evaluating the money factor and trying to decide about the selling price of your house, invite some realtors to get a realistic idea of what price you can expect. If there is a good deal of uncertainty in other areas, contact an objective third party and discuss the proposed job change. If you are fortunate enough to have a mentor, now is the time to call on that person and consult the wisdom of an informed outsider. Changing jobs and developing your career can be fun and exciting, or it can be draining and painful. The combination of knowledge and confidence will only strengthen your bargaining power and obtain optimal results. As you make your decision, remember the three factors: money, opportunity, and location. I am confident that you will then minimize the uncertainty surrounding job offers and know when to love 'em or leave 'em.
Employment Contracts
Today we operate with a revised employment-at-will doctrine, and therefore you and your employer can establish conditions of employment. In health care administration, job termination goes with the territory, and you may need to negotiate a formal employment contract to protect your interests. The trend in the last five years has been toward using employment contracts, which mirrors the trend in other businesses. Nearly 50 percent of hospitals CEOs now have some type of contract, according to the American Hospital Association. Typically, only top executives sign formal employment contracts.
Should you broach the possibility of using a contract with your prospective employer, and if so, at what point in the negotiation? As soon as you have been offered the position, you can suggest using a formal employment contract as one of your conditions of employment. Hospital boards are more familiar with them than they were in the past and, in fact, may introduce the topic as a part of the job offer if they believe that you expect it.
Realistically, you should be reasonable in the areas covered by the contract. You must balance your interests against what the market will bear. To understand the use of employment contracts, review any actual contracts that you can get your hands on-it only takes a little creativity. One resource is Contracts for Healthcare Executives, published in 1987 by the American College of Healthcare Executives, which discusses the issues of employment contracts for health care administrators and provides sample documents. I offer it for discussion purposes only, in order to illustrate what an employment contract may actually address.
In recent years, the balance of power in the terms of employment contracts has shifted from the executive to the health care organization, reflecting the law of supply and demand in a crowded market. But truly exceptional candidates can still request and receive a contract. Both parties have rights, and a thorough and clearly worded contract may be the best way to protect them.
Terms of the Contract
Likely issues to include in an employment contract include the following:
- Expected duties. Specify in complete detail.
- Compensation. Includes benefits, salary, and increasingly, incentive pay.
- Dispute resolution. Specify which state laws will apply and which methods will be used to settle problems.
- Basis for termination. List the circumstances under which you can be terminated.
- Non-compete agreement. Should be reasonable, in terms of distance, duration, and type of work.
- Sick leave. Indicate company policy.
- Maternity leave. Should be as clear as possible.
- Severance. Should be a reasonable length of time, 1-2 years. Includes continuation of health and life insurance.
- Insurance coverage. Specify level and cost to you.
- Ownership of work product. Your employer has a right to expect this.
- Illegal activity. Define and spell out consequences.
You may be asking yourself if you should consult an attorney. In my opinion, you should. You need expert legal advice to know exactly what you are agreeing to. Also, because labor laws vary so much from one state to another, you will better protect yourself by consulting with an attorney familiar with employment issues in that particular state.
Related Contracts
You may well be asked to sign a confidentiality or nondisclosure agreement. It will cover the following:
- A promise not to disclose confidential information
- A transfer of liability from the company to the employee if the employee speaks out of turn
It is possible that you may not have an employment contract. Your employer may simply ask you to sign and return the hiring letter. In that case, make a copy of the letter and treat it with the same respect with which you treat a contract. Or you may verbally contract to begin work, literally on a handshake. When you accept the organization policy guidelines, personnel manual, or company handbook, you are agreeing to the conditions for employment. Know what they are. Read the contents thoroughly, as soon as you possibly can.
The Three R's of Employment Contracts
As an employee entering into a contract with an employer, you must know your rights, your responsibilities, and your recourse to breach of contract or discrimination. Employment contracts are legal documents. Don't sign one unless you understand it.
Breach of Contract
If your employer breaches the employment contract, you can negotiate, mediate, or sue for damages. But the contract goes both ways; you must uphold your part of the bargain. The best employment contract protects both you and the employer, balancing your interests with those of the organization. The most common response to a breach of employment contract is seeking money to compensate for loss caused by the breach. The amount of damages should be reasonable.
Finally, make sure you already have a job before you sue a former employer. Suing your employer, no matter how justified, is looked upon unfavorably by prospective employers. Don't allow pursuing legal action to become a full-time job.
