An important key to success for any business is to ensure that all team members clearly understand the overall goals and objectives of the business. However, to make this “big picture” awareness effective, each team member must clearly understand their role in the company's objectives and what results are to be achieved in each respective position.

Many organizations use job descriptions to meet this need. Job descriptions prevent confusion in a business by detailing the exact role that an employee plays in the business. A good job description can also prevent much of the finger pointing that usually occurs with misunderstandings surrounding job responsibilities. Although job descriptions are a good tool, most lack the essential elements of measurement and accountability. While job descriptions may list job duties, they rarely specify the criteria for measuring an employee's performance. Developing a formal Position Contract can address this issue.

The term “Position Contract” is a new concept to most business owners. A good position contract effectively combines the traditional “job description” and “job specification” documents and adds measurement and accountability to the game. Maybe you already have job descriptions in place and don't see a need to change? A position contract will only enhance, not detract, from your current job descriptions and will add the important element of accountability. Perhaps you've never used job descriptions in your business? Then now is the ideal time to incorporate this essential tool into your business. We'll now explore each portion of a position contract and discuss the possible ways to create one.

First, the “job description” portion lists the job responsibilities and essential functions of the job. There are three key elements to the job description: Job Title, Job Summary and Job Duties. Job title is self-explanatory. A Job Summary is just what the name implies - basically a thumbnail sketch of the job. The Job Duties section lists each of the essential functions of the job, in order of importance or time required to perform those functions.

How do you determine what should be included in the job duties section? There are several ways to gather the data to help you appropriately document what should be included in this section. Some of the data collection methods include job observation, one-on-one or group interviews and questionnaires.

Using the data collected from your job analysis efforts, you now have the information needed to effectively compose the job duties section. Another great way to develop this section is to have the current employee in the position write their own job description. You can then take what they contribute, adding your own input as a business owner or manager, to refine and complete this section.

Next, the “job specification” portion lists the knowledge, skills, abilities and characteristics required to effectively perform the job. They include the minimum (or preferred) requirements for education, experience, general characteristics (such as good communication or team player skills, etc.) and specific knowledge (software proficiency, foreign language, training certifications, etc). It's also important to note that law and court rulings have been clear in the use of criteria listed in job specifications. Only those criteria that are truly job related may be identified. It's also wise to have an attorney review your completed position contracts prior to formalizing them in your organization.

The third component is the accountability section. Its purpose is to specify what's expected from the position and any metrics used for measuring those expectations. Ask yourself, “What are the desired results for this position?” Examples of desired results that tie pay to performance could include measurements such as sales level, profitability, customer satisfaction, efficiency or productivity measures. The key here is that the metrics used must link the employee's performance to the organization's overall goals and objectives. These measures should also be included as evaluation criteria for the employee's regular performance reviews.

Finally, a position contract should include a place for both employee and employer to sign, demonstrating their mutual review and commitment. With these components in place, you now have a very effective document that clearly delineates roles and responsibilities and provides accountability to obtain maximum results from your team members.

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