How to Negotiate a Contract With a Company
Negotiating a contract with a company is a part of any new employment situation. Negotiate well and you may end up with the position of your dreams. Negotiate badly and you could end up in a job you don't enjoy and that doesn't pay you according to your skills. Effective negotiating strategy can ensure that you end up with a rewarding job that pays you for your knowledge and abilities.
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Instructions
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Protect yourself, advises the website CIO. Should the company no longer wish to employ you, ensure that, if possible, you will be remunerated. In addition, if you are changing companies, ensure that your new company covers any losses to your pension plan and retirement benefits.
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Do not leave your old job until you have finalized your new contract. Not only does this put you in a stronger negotiating position, but it ensures that if you cannot reach an agreement, you will still be employed.
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Negotiate your contract gently but firmly. You don't want to take the sheen off any new relationship, but you have to look out for yourself. Generally, if you handle contract negotiation tactfully, rather than aggressively, companies will be amenable to small changes and your continuing relationship will be better.
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Consider hiring a lawyer, if the contract is large enough to warrant it, to examine any contract before you sign it. Not only can he advise you, he can also negotiate for you, minimizing any bad feelings that may arise between you and the company.
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Consider how much you are worth to a prospective employer. Do you offer unique strengths or skills? Or could other people fill the role equally well? You have a much stronger negotiating position if you are one of only a few people who are suitable for a particular position.
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Give as well as take. Contract negotiations usually involve trade-offs, meaning you must be willing to make concessions. For example, you may have to accept lesser bonuses to obtain a higher salary.
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Negotiate with realism. Some areas of a contract simply may not be open to negotiation, and any attempt on your part to change these provisions will engender bad feeling to no end.
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Make your expectations explicit, advises Carly Chynoweth in the "Sunday Times" newspaper. If an issue is important to you, raise it during the interview process rather than assume it to be part of the position. This might, for example, include opportunity for travel or training in your new position.
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Clarify any offer carefully. Was the end-of-year bonus a certainty or based on performance? Do all employees enjoy business-class travel or just executives? Define your contract exactly to avoid later disappointment.
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Tips & Warnings
Approach the area of notice periods with caution. A long notice period may seem attractive initially, but it will make other companies less eager to employ you in the future if they have to wait a long time for your services.
References
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