10 Top Tips When Negotiating A Contract Offer
You Want To Negotiate Your Contract – What Exactly Is This?
Negotiating a contract offer is when you and your future employer aim to reach a mutually beneficial resolution during the interview and job offer stage. When it comes to the realm of recruitment and hiring, a contract negotiation will consider all aspects of the remuneration package such as:
- Salary
- Bonus
- Working Hours
- Car/Car Allowance
- Flexible Working Hours
- Annual Holiday Allowance
- Health Insurance
- And so on!
After you have had your interviews and the hiring company decide they want to bring you on board, it’s best to be fully equipped with a strategy on how to negotiate the best contract for yourself – that both you and your prospective employer are happy with.
It is important that, when negotiating, you consider that you and your employer want to get off to the best possible start.
1) Preparation is Key when Negotiating a Contract Offer
When you are preparing for your interview, and contract negotiation, be sure to research the company and the marketplace in which they operate in. Try to fully acquaint yourself with what it is they are aiming to achieve by hiring you.
Are they seeking somebody to streamline processes? Improve control cashflow? Improve profits? Reduce and control costs? Provide reports in a timely manner? Consider these when negotiating a contract offer
When you fully understand what they are looking for – you can adjust your position and market yourself accordingly
2) Clarify what it is you are asking when Negotiating a Contract Offer
People like people who are transparent, clear and upfront with their expectations. This works both ways.
Advise the employer what your salary goals or expectations are.
Likewise, your prospective employer should outline what it is they are looking to pay – remember, this may be tied to an inflexible budget!
3) Don’t give ultimatums
This is a sure-fire way of stopping the negotiation dead in its tracks. Be respectful – people appreciate this.
4) Recognise the limitations and restraints of the hiring party.
As we alluded to earlier on – what a prospective employer is prepared to pay could be tied to an inflexible budget. At this time, they just might not be able to pay what you are aiming to achieve.
5) Focus on the bigger picture
It is not all about the money – consider:
- Does this role offer you a greater work-life balance?
- Is it less of a commute?
- Is the business well reviewed from current and former employees?
- Is there an opportunity to develop within the business?
- Will it simply look great on your CV and lead to greater money-making opportunities in the future?
- Can you learn and develop yourself in this role?
6) Be honest about your current salary
- It’s no good telling a prospective employer that you earn more than what you actually are
- …your p45 doesn’t lie!
- Instead, focus on why you expect to command a higher salary
- Market yourself accordingly!
7) Benchmark, benchmark, benchmark!
Utilise the industry metrics to justify your requests. If you are being offered £30,000 a year and the marketplace is advertising £50,000 a year… be firm!
When negotiating a contract offer, both the employee and employer need to be realistic
8) Be realistic, but don’t be afraid to walk away if things don’t stack up the way you want them to.
If you can’t get what you want, and both sides are determined not to budge, save yourself and the prospective employer the hassle – find something else!
9) Write down what has been discussed
It is always good in life to record and maintain a point of reference…you will never know when you need to refer to it!
We hope our tips help you negotiate a contract that works well for you, and your employer!
