Negotiating an employment contract is a critical phase where you establish the terms of your professional relationship with your employer. A well-negotiated contract can set the stage for a strong future with the company and a successful future career—or even set the terms for a fair exit. How can you approach this process with greater confidence?
Know your value.
When approaching negotiations, you should know how the compensation outlined in the contract compares to other positions in your area and your industry. This knowledge can empower you to negotiate compensation that reflects your experience and the contributions you will make to the company. If any compensation formulas are included, such as for commissions or bonuses, assure that the criteria are clear and transparent.
While a salary and bonuses are important considerations, you should also be sure not to overlook the non-monetary compensation in the contract. Opportunities for career development, benefits, time off and other details are also important aspects of your contract.
Consider what your time at work will be like.
When you take a job, your daily job responsibilities, work-life balance and opportunities for advancement can have a significant impact on your job satisfaction. Discussing these details during contract negotiations can lay the groundwork for both your contentment and your career growth.
Know how the contract might limit you.
Non-compete (now generally prohibited in many situations), non-solicitation and confidentiality clauses can significantly impact your freedom to change jobs or start a business in the future. Reviewing these terms to ensure that they are reasonable can help you avoid unfair restrictions in the future. Consult an experienced attorney, such as those at Cross Law Firm, S.C. to assist you with these terms.
Seek assistance during contract review and negotiations.
Employment contracts can be complex, and skilled legal guidance is invaluable. An experienced attorney can help you understand the implications of the terms. They can also bring negotiation experience to the discussion with your employer and protect your interests.
Know when to be flexible.
When it’s time to negotiate, it is important to be assertive and know the essential changes you will not sacrifice. However, you may also be ready to consider alternatives that still meet your core needs. This can set a positive tone for the beginning of your work with the company while also ensuring that you have what you need when negotiations are done.
While negotiating an employment contract is a strategic process that requires preparation, it is possible to negotiate a contract that protects your interests.
Pay attention to the exit terms.
The best employment contracts include a roadmap for the employee’s exit, including severance terms, use of employer equipment, references, benefits, and outplacement.