How to Negotiate a Contract With Management

Use visual expression with live meeting contract negotiations

Negotiating with management for a contract can be a daunting task. Workers may need to do this to obtain a better salary, benefits or labor conditions. Management often finds themselves in the position of power and can force the other party to meet their demands. Therefore, to change the position of power, you must hear their terms first. Then, you will be able to make a counter offer that meets the obligation, but guarantees more benefits simultaneously.

Things You'll Need

• Support documentation (i.e., statistics, industry reports)

Instructions

1. Do your homework regarding the contract with management. For example, understand the terms that may be unfamiliar. Formulate your acceptance standards and place it in writing. Determine, if the terms are industry-standard or above. If it is above, there is opportunity to request higher standards for acceptance of the contract. Use statistics and reports to support the opinion and emphasize qualifications. Provide an updated resume to management to further highlight experience.

2. Allow management to place an offer first. Evaluate it, and determine whether it meets your set standards for acceptance. If it does, see where you can earn more benefits. For instance, working from home once a week could be an option for some workers. Catered lunch included in the workday could be another step toward enhancing the worker's contract. However, all benefits must translate to bottom-line savings that are substantial and measurable. For instance, catered lunch at the workplace may find less productivity is lost because the lunch-hour hassle of getting workers back in time is eliminated.

3. Give a set amount of time for response. This way, neither party is left wondering how to move forward for a long time. Provide all contact information and leave management with a lasting impression of what they could loose, if they do not comply. Create at least three substantial benefits to selecting your version of the contract. To negotiate a contract with management successfully, a worker must prove that it will save time, money and/or stress.

4. Offer an initial trial run to give an incentive for overall acceptance. This will enable both parties to see how their expectations will be met. Be willing to compromise, but not give up all standards for acceptance. Have more than three standards, and rank them in importance. Always have one that is non-negotiable and at least one that is negotiable. For live meetings, make eye contact and appear confident. Also, allow management to do most of the talking. However, when appropriate, respond to all concerns within the contract to seal the deal.

Tips & Warnings

• Practice your verbal statements and ask for an outside opinion when possible. Keep a copy of the contract to use while meeting. Use psychology research, and industry knowledge to provide an edge.

References

• Negotiation Institute