Master contract negotiation
You have lots of requirements when it comes to job hunting. You’re looking for a position within a certain commute distance of your home. You want to be working in a field you’re passionate about. But more than anything, you want to be compensated fairly.
Securing a new job is only half the battle. After a company has reached out to offer you a position, you need to develop a strategy for negotiating contracts. Considering that you’ll probably remain in your new position for at least a few years, you absolutely must make sure that you’re getting everything you want from your employer from the get-go.
While you can and should adjust the minutiae of your contract negotiation strategy for each potential employer, there are six elements you should build your expectations around.
1. Have your end goal in mind
What’s your ideal salary, and how did you get that number? Sure, you might want to make $100,000, but why did your mind immediately jump to that number? Examine your past experience and respective salaries. Then, look at your finances. How much money do you need to not only cover all of your expenses, but to start generating wealth and saving for retirement? When you’ve finally figured out your goal salary, know without question that you won’t accept anything less than this during a contract negotiation.
2. Be realistic
As stated above, you’ll need to look over your experience and previous salaries to determine what you should be making, and compare it to the standards in your industry and in your area. The job that pays $75,000 in one region might only pay $60,000 in another. Additionally, know what exactly you bring to the table in terms of skills.
Author and entrepreneur Keith J. Cunningham suggests viewing contract negotiation as an agreement that will benefit both parties. In order for you to benefit the way you want, the opposite party – your prospective employer – needs to benefit as well. What can you offer your potential new boss that makes you worth $80,000, $90,000 or $100,000? How many new customers will you reel in for them, or how much money will you save them by maximizing efficiencies? Do they need your particular set of talents?
You should always know your worth, but researching the company and its industry will help you determine how much you should ask for.
3. Realize that everything is negotiable
Has the company you’re interviewing with said that there’s a set cap on your position’s salary? Jeff Cochran, one of the partners of Shapiro Negotiations, is a master of negotiation and believes that everything is negotiable. Jeff has consistently been a speaker at Business Mastery events, and knows how to negotiate a contract. Keep in mind that the reason you’re negotiating is because there are so many variables in play, so don’t think of anything as a final say until you’ve signed an agreement that pleases you.
Jeff also recommends that during contract negotiation, you move your number up incrementally, rather than making big leaps in your asking price. The latter risks alienating your future employer; instead, move upward in small, strategic sums until you find a salary that makes both parties happy.
4. Think beyond your salary
We often think of contracts purely as documents that establish how much we’re paid, but there are many other things to consider. Consider your lifestyle. How many vacation days is your prospective employer offering you? Can you negotiate your title to something that will be more powerful when listed on your résumé? Have you been offered health benefits and stock options that work for you and your goals? Consider all these factors during contract negotiation – it’s not just about your salary.
5. Be prepared
Contract negotiation is an art that takes time to learn. Even after you’ve mastered the skill, there are times when you simply need to be prepared to walk away from an organization. Whether they’re not meeting your needs financially or otherwise, you need to have a point at which you can leave and feel all right about it. What does that point look like? It’s entirely up to you, but planning ahead will help you formulate what you will and will not accept. At the very least, you should have a clear vision of your goals, your contract needs and where you need the two to align for ultimate job fulfillment.
6. Know how to present yourself
Whether you’re negotiating a new contract or revising your current one during an annual review, be conscious of how you’re presenting yourself. Dress well. Approach this contract negotiation with confidence: Sit up straight with your shoulders squared, keep your hands and feet still and make eye contact. You’re here to obtain the salary you want, but focus on building rapport, too. Remember that you are trying to give both parties what they want; observe the posture of the person you’re negotiating with, as well as how they are responding to your discussion. When the person you’re negotiating with sees you as organized, professional and self-assured, they’re more likely to trust your worth and give you exactly what you want.
Most importantly, know that negotiating a quality contract is a learned skill. The more you practice the art of negotiation, the better you’ll become at getting what you want and expressing your needs to the people around you.
Leverage your way to success through negotiation
Tony Robbins’ complimentary Seven Forces content series uncovers the negotiation skills and tactics necessary to achieve your ultimate business goals.