contract negotiation

At various stages in your career you will need to negotiate your contract, whether for a new role or a pay review for your current engagement.

In these circumstances it’s key to focus on as few selling points as possible to ensure that the recipient of your message (your potential boss or current employer) is not confused with what you’re saying. Make sure there is one core message that you want them to walk away with and focus on that. It’s easier for people to remember one benefit than a collection. It’s important to do your research, as you would for any sales pitch - know your product. In this case, it’s you, so you need to know exactly what the features, advantages and benefits are. ie. the worth of you. You need to think of yourself as a brand and you as its guardian.

First of all, find out how much you are worth:

Call us for advice on market rates in your locality
Take a look at salary surveys on the internet
Analyse press advertisements and ads on our site for similar vacancies
Speak to colleagues in similar roles in similar locations (but note that this is the least reliable source)

It’s key to appreciate the dynamics that impact on salary:

Geography
Experience
Responsibility
Number of direct reports
Relevant qualifications
Market trends
Inflation and general economic climate.

The list could go on. If you’re re-negotiating your contract with a current employer there are additional factors to consider:

The profitability of your company
Your firm’s position in the business life cycle (start-up, growing, stable or turnaround)
How you/your team is performing
Whether or not there is a policy of banding salaries for staff of a particular grade or length of service
Your relationship with your boss
Your profile within the organisation/team
Is there a limiting bonus/commission structure
Are you asking for a pay increase out of season – i.e. not at a recognised pay-review time.

All of these factors could impact on your contract negotiation so be wise to them all and prepare for their discussion. Astute negotiators should also:

Make sure they have met or been surpassing expectations if they want to be taken seriously for a pay rise. Similarly, if you are negotiating a salary at the top end of the band in a new role, then be sure that you satisfy the job specifications laid out. Holding out for “top whack” when you fall woefully short of the “must have” skills and experience may discredit you.
Speak to someone who has managed to negotiate a pay rise in your organisation. This could be a useful conversation to have to understand the process and what was required of him or her.
Be honest if you are considering other opportunities. Suggesting that you have alternatives will focus the mind of potential employers and highlight you as an attractive candidate. Obviously this can be a dangerous strategy when trying to establish a better deal with a current employer. It could be perceived as disloyal and should only be used if you’re confident you can suffer the consequences should your bluff be called.
Decide on a figure you are going to ask for, which should be a touch higher than what you’re happy to settle for. This will give you some room to negotiate and avoid disappointment.
Manage your own expectations – being realistic and keeping hopes in check is sound advice. No one is obliged to say yes to your every wish.

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