The art of contract negotiation technique

In the art of negotiation, whether it is business or personal requires planning and execution. Unlike toddlers, who negotiate by crying and rolling around on the floor, adults need to employ a different skill set to get their point across. The following are some tips for successful negotiation.

Before the meeting be well rested and well fed- also visit the restroom before “entering the arena” as you don’t want a nature call to have you leave the room or adjourn the meeting early.

Wear comfortable, yet appropriate clothing- the commercial expression “don’t let them see you sweat” is never more applicable. A tight collar and or tie or a skirt that is being hitched or hiked that will cause you to fidget will detract from your image.

Focus on issues, not personalities- if you have to deal with persons you don’t like (or those you do like) it is tempting to let your thoughts about that person influence your behavior. Focusing on your goal and treating everyone as an equal will help matters become resolved in your favor. By treating all fairly you will avoid simmering about grudges or worrying about feelings, which can be an obstacle in your success.

Speak in supportive statements- Attach credibility to your statements by speaking in facts not feelings. Avoid sentences beginning with “I think” “I feel” or “In my opinion”. When stating facts, be prepared to quote your sources and elaborate or deflect questions meant to deflate your position. Being armed with facts stands up better than trying to justify feelings.

Listen (with more than your ears)- Listen for audible content but also watch the body language. Are your opponents sitting with an “open” body posture or are their arms tightly folded across their chest? Are they scratching their nose often in disbelief? Are they looking down or are they engaging you with their eyes in a game of “blink” to establish who is boss?

Find points of agreement to build on- pick up points that you agree upon and incorporate them into your presentation. An example would be “I agree with you on the importance of XYZ, and this is how the implementation of PDQ can benefit XYZ".

Choose your battles wisely and place some “decoy” items on the table- a trick popular with attorneys is to ask for much more than you want so that you can “sacrifice” superfluous or unreasonable items to gain ground for the important issues. Compromise with care on items important to you. Weigh carefully whether holding out will be in your best interest. Sometimes a speedy resolution isn’t the best.

Take minutes- Have someone tape or take minutes so that all that has been said is recorded. Reiterate that your responsibility will be and that you will execute your part right away. If in a business meeting you can end by saying “I will have this in a memo to distribute this afternoon” or “I will make the necessary phone calls to get this rolling right away”. If contracts are involved, have them ready on the spot or as soon as possible to get a signature to what has been agreed. Although most contracts have a “cooling off” period of three days or so, getting a written commitment to your settlement brings you that much closer to your goal.

End on a positive note - Shake hands and smile. A smile shows friendliness and confidence and that you are a great person to do business with, even if everyone in the room wasn’t altogether pleased with the outcome. Conversely, if you did not get all you wanted, don’t appear a bad sport. Focus on your “wins” and play down the losses. Take honest notes to yourself on your tactics and see how you can improve for next time.

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Negotiation techniques

Recently, I attended a seminar about effective communication in the work world, anticipating the part in the program when the featured speaker would teach us how to negotiate.

I was starting my own business, with promotion an important part of my game plan to success, and I wanted to learn the most effective way for getting what I wanted out of a deal.

The seminar was almost over when the speaker told us she had a few minutes left to tell us about how best to negotiate a deal. She said the lesson involved arm wrestling, so, if we would turn to the person next to us, and clasp hands, elbows on the table, we could start with the lesson.

Everyone laughed. We weren't planning on having to hold hands with our neighbors, let alone arm wrestle. It was a little embarrassing, to say the least.

I looked at the woman next to me, and she was a solid lady, muscular from cleaning corporate offices. We were seated at the table in front of the room, so, I didn't want to lose. We grasped one another's hands, elbows to the table. Her grip was dry and strong. Mine was loose. I didn't want her to think I was trying.

Before telling us to "GO!", our instructor added this last bit of information. She told us that everytime we forced our opponent's hand to the table, we would win $1,000.00. Then she said,"Go"!

The cleaning lady and I pushed against each other arm to arm, palm to palm. I could feel the strain of keeping my arm up all the way to my toes. At the end of 12 seconds, our leader called time's up! She asked how many of us won $1000.00. A few women raised their hands. Then she asked a strange question. She asked how many of us had made more than $1000.00. Two women raised their hands. They were partners in the arm wrestling, and they managed to make $10,000.00 in 12 seconds.

Everyone gasped. "How did you do that?" our leader asked.

"We did this," one of them answered. They demonstrated by holding hands while they pushed each other's arms to the table--back and forth--back and forth---as fast as they could. Each hit won them $1,000.00 imaginary dollars.

As the point of the lesson hit home,I more than learned what I had come to learn. Negotiating in the right way is a win-win situation. Everyone profits. Good negotiation is cooperation.

How have I used this valuable lesson in the work world?

I have a radio show. I highlight area musicians, writers, poets, you name it. One lady that I interviewed was grateful for the free exposure. In return for my free promotion of her, she wrote a song to preface my program--giving it a much more professional sound.

This has caused my program to be picked up by other stations. Which has increased my audience--and hers!

She and I have never charged one another a dime for our mutual services and support. But, our negotiations always take us places we could never have reached alone.

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Salary Negotiation: Don't Be Emotional

One of the most difficult situations for an employee, is when he/she wants to ask for a salary raise. However, if you are well prepared and use the right approach then you can negotiate an amount of money that both you and your boss can be happy with. There's nothing wrong when asking for a raise, if you do it professionally.

And here are some suggestions:

First do some thinking. What are those negotiating techniques you could implement when asking for a salary raise? When is the best time to ask for a raise? What is the best way to ask for a raise? It all depends.

Stay focused. Prepare your mind for success. This is quite vital. If you don't expect your boss to listen to you then how do you expect to get a salary raise?

When negotiating your salary it's important to be flexible and have alternative plans. For example your boss may not offer you more money but different benefits like stock options, tuition reimbursement etc. Will you be happy then?

The majority of employers ask for a raise without even knowing their market. This is a big mistake. Do some salary and job research and see what other employees in your field earn. This will strengthen your position when negotiating your salary with your boss.

See what you worth in the market. You must think like a freelancer. Search for other job opportunities, talk to other companies, get offers, see what your value is in your area of expertise. You may need to make career moves. The bureau of labor statistics is a great resource. check it out.

Don't use your emotions to outsmart your boss. You will not win. Your boss is probably experienced enough to not fall for these techniques. Just don't bring emotions when negotiating your salary. Be professional and always give your boss enough time to think what he/she can do for you.

Take your future in your hands. Stop being manipulated by your employer. Get the salary raise you deserve using powerful psychological and other secret techniques. Make your plan, prepare yourself, start negotiating your salary and beat your boss! Good luck.

By Maria Markella

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Keys to Passive Salary Negotiation For Job-Seekers Who Don't Like Negotiating

by Jack Chapman
Passive negotiating. So you're not one who enjoys conflict? In fact you avoid confrontation of any kind? You don't want to hurt anyone's feelings or take advantage of anyone. You're a giver -- not so good at receiving? You're a helper, not so good at being helped?
Here's the two things you can do that will not create the dreaded possibility of tension and disapproval, but give you a chance to add dollars to your paychecks.
Some negotiations require action on your part. Documenting, comparing, estimating, promising, etc. Other things are more passive. you want the least amount of negotiating besides saying "OK" (which is simply no negotiation at all!) consider these two passive techniques.
1. Be quiet when it's time to be quiet. You can still be an agreeable person, just don't agree right away! Use "The Flinch." When it comes time -- and it will come time to do this no matter how nice you are -- to talk money, simply let them talk. You don't need to break in; don't need to counter offer; don't need to do anything proactive, or even reactive: just be quiet. When you hear their offer, repeat it and say "Hmmm." Think about it. You will probably get a raise on the spot.
2. Ask "What's the best you can do?" You don't need to argue, present your evidence, make a case, etc. You don't need to say "no" to the offer you received or re-negotiate terms or cover fine pits. You don't need to demand more money or even ask for more money. You won't push them outside their comfort zone. Simply say, "Wow, thanks for your offer. I look forward to starting. And I'm not a very good negotiator, so I prefer to leave this up to you -- I trust you'll tell me the truth. What's the best you can do?
There, that's not so hard, is it? Have fun! 

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Salary Negotiation: Negotiating A Relocation Package

By Nathan Newberger

Each month thousands of employees move to a new community, to start a new job. Moves often are more expensive than anticipated. Not only is there the actual expense of moving, but also, for a home-owner, the expenses connected with selling an old home, and buying a new home.
Some corporations may offer to cover some or all of the relocation costs for employees who are moving at the company's request. Larger companies usually offer a more elaborate relocation package than smaller firms. These benefits become particularly important when there is a large increase in housing costs. For example, an employee leaving a $150,000 four bedroom home in a small midwestern community may find that comparable housing in the San Francisco Bay Area may cost around $500,000.
When interviewing for a job, ask your prospective employer whether or not it has a relocation program, and find out as much as you can about it.
Benefits which may be offered to a relocating employee vary widely. Each situation may call for a different bundle of benefits; analyze your own situation carefully. It is always best to negotiate these matters as part of a transfer package, before accepting the new job, to avoid surprises to either the employee or the company after the move has taken place.

1. Cost of a familiarization and house-hunting trip for the employee, spouse, and family. (Does your family really want to move here?)
2. Extra time off (with pay) for traveling and house hunting in the new location.
3. Moving expenses, including packing and insurance.
4. Travel expenses (lodging, meals, gas, etc.) while traveling to the new location.
5. Assistance in the sale of your old home:
• º Company assumes responsibility for monthly payments, taxes and insurance until
    the old home is sold.
• º Price guarantee: if sold by the employee, the company will pay the difference
    between the net selling price and a specified price.
• º Alternative price guarantee: If employee can not sell the house within a
    specified period of time, the company will buy it at a specified price.
• º Company will pay commissions and other costs of sale.
6. Assistance in the purchase of a new home:
• º Company to pay rent of temporary quarters, until a permanent home is located.
• º Buy down the interest rate.
• º Company provides low or no interest loans.
7. A salary level commensurate with any increase in cost of living between the new location and your old location.

You will want to minimize the tax impact of any benefits you receive. For information on the tax ramifications of your relocation expenses and any reimbursements by your employer, see the IRS Publication 521, Moving Expenses. Browse on-line or download this publication from the IRS at www.irs.gov/ How hard should you push for relocation expenses? Try to analyze your bargaining position relative to the prospective employer. Does the employer have many options? Are there many qualified local applicants for the same job? Or do you have unique skills unavailable in the local market? Ask yourself, "If I owned the company, would I be willing to pay for my relocation?"
As a final check-list before accepting a new job in a new community, consider the effects on your over-all career goals:

1. Does the move represent a true promotion, or a desirable change in direction, or is it only a lateral move?
2. Is the new location in the "mainstream" of your industry, or are you moving to a "backwater"?
3. Would you prefer to live in the new location for personal, life-style reasons?
4. Considering the changes in salary and costs of living, is the move a financial advantage or disadvantage?

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11 Commandments For Smart Negotiating

By Lee Miller

The job market is the best it's been in 20 years. The Commerce Department estimates that U.S. businesses will need to hire one million new computer scientists, engineers, systems analysts and computer programmers by 2005. Yet graduates with degrees in computer science are being produced at a fraction of the rate needed. The Information Technology Association of America reports 190,000 current job openings for web experts and other information-technology specialists, and similar shortages are cropping up in other industries as well.
These market conditions provide a great opportunity to negotiate an excellent compensation package, but only if you understand how.
There are 11 basic commandments to help you negotiate the best possible deal when changing jobs, whether internally or with a new company. They are:

1. Be prepared. The more information you have about your market value and the prospective employer, the greater your likelihood of success. This is the first commandment because it's the most important. There's a wealth of information available on the Internet, at the public library and through professional associations and networking groups. Time spent learning how to negotiate and preparing for negotiations may be the best investment you'll ever make.
2. Recognize that employment negotiations are different. When the negotiations are over, you'll have to work with the person with whom you're negotiating. Moreover, your future success may depend on that person. So, while you want to negotiate the best possible deal, you need to do so in a way that doesn't damage your image. At the same time, the employer's primary concern isn't negotiating the least expensive compensation package it can get away with. Rather, their focus will be on getting you to accept the job.
3. Understand your needs and those of the employer. To be successful in this type of negotiation, you need to examine your priorities. What do you really want? Are you comfortable with a low salary and a large equity stake? Are you able to handle dramatic swings in income from year to year? Understanding your needs will also help you determine the type of company you want to work for. For example, a family-owned company may be able to offer a competitive salary and a large bonus based on results, but may not be willing to offer significant equity to a non-family member. A start-up company, on the other hand, may not be able to offer market salary, but will typically offer stock options. By recognizing what an employer can and can't do, you'll be able to determine what issues you should press.
4. Understand the dynamics of the particular negotiations. Sometimes you'll have skills that are in great demand. And sometimes, you may be one of several qualified candidates the company would be happy to hire. Sizing up the situation and understanding the relative position of each party will help you determine when to press your advantage and when to back off.
5. Never lie, but use the truth to your advantage. It's not only wrong to lie, but in employment negotiations, it's ineffective. If you lie during negotiations, sooner or later you're likely to be caught. Once you are, even if you don't lose the offer, you'll be at a tremendous disadvantage, and your credibility will always be suspect. On the other hand, total candor won't be rewarded. You're under no obligation to blurt out everything you know. You can determine what you want to say and how you want to say it, and try to put everything in its most positive light. One key element of your preparation should be to recognize areas of concern so you can rehearse how to handle them when they inevitably come up.
6. Understand the role fairness plays in the process. The guiding principle for most employers when negotiating is fairness. Within the constraints of their budget and organizational structure, employers usually will agree to anything that's fair and reasonable to hire someone they want. Appeals to fairness are your most powerful weapon. Thus, you should be able to justify every request you make in terms of fairness. For example, if other computer programmers in similar companies are being given sign-on bonuses, you should expect to be treated no differently. Your prospective employer will want you to accept its offer and feel that you've been treated fairly. Understanding the importance of fairness as a negotiating principle can make the difference between success and failure.
7. Use uncertainty to your advantage. The more information you convey to a potential employer about your bottom line, the more likely it will limit what you get. Before making an offer, a company typically tries to determine what it will take for you to accept the position. With that information, the prospective employer will be able to determine the minimum package it needs to offer. While they may not offer you as little as they can get away with, if you've divulged too much information, they likely won't offer you as much as they might have otherwise. By not disclosing exactly what your current compensation is or exactly what it would take to get you to leave your job, you'll force a potential employer to make its best offer.
8. Be creative. Consider the value of the total package. Look for different ways to achieve your objectives. Be willing to make tradeoffs to increase the total value of the deal. If you're creative, you can package what you want in ways that will be acceptable to the company. You'll also be able to find creative "trades" that allow you to withdraw requests that might be problematic to the company in return for improvements in areas where the company has more flexibility. That way, you can maximize the value of the package you negotiate.
9. Focus on your goals, not on winning. Too often in negotiations, the act of winning becomes more important than achieving your goals. And it's also important not to make your future boss feel as if he's lost in the negotiations. You'll have gained little by negotiating a good deal if you alienate your future boss in the process.
10. Know when to quit bargaining. The one sure way to lose everything you've obtained is to be greedy. There comes a point in every negotiation when you've achieved everything you could have reasonably expected to gain. While most companies will want to treat you fairly and make you happy, few companies want a to hire a prima donna. Being perceived as greedy or unreasonable may cause the deal to fall apart. Even if it doesn't, you'll have done immeasurable harm to your career. This brings us to the 11th and most important commandment:
11. Never forget that employment is an ongoing relationship. Job negotiations are the starting point for your career with a company. Get too little and you're disadvantaged throughout your career there; push too hard and you can sour the relationship before it begins.

Understanding these principles will allow you to effectively negotiate the terms of your new job. Then do your job well and continually seek out new challenges. As you take on added responsibilities and learn new skills, there will be opportunities to negotiate further improvements.

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