Even though the ‘new’ HR are tech-savvy and aware of the importance of keeping their employees happy, engaged and satisfied, sometimes they underestimate the value of a written proposal or contract. After all, they want to keep their employees, don’t they?
When an HR person interviews for a job and they recognize that the position has been offered verbally, they may assume that a contract isn’t needed since everything has been settled.
But what happens when the employee is concerned that the terms of the contract/proposal aren’t being upheld? What if there are additional responsibilities that the employee feels are being ignored? Or what if the offer is just too good to be true and there’s a risk of fraud?
In these situations, a contract/proposal is exactly what the employee needs to have confidence in the workplace. It also provides some legal protection for both parties in case of a dispute. So it’s definitely worth having!
Whether you’re just starting out or you’re already an experienced HR professional, you’ll eventually find yourself in a position where you need to negotiate with an employee over the terms of a Job offer. It might be the case that you’ve interviewed with several candidates for a specific job, but none of them seem to fit perfectly into what you’re looking for. Or perhaps you’re trying to fill a vacancy and no one seems to be able to match up the requirements with the capabilities of the candidates you’ve interviewed.
In any case, when you’re not sure how to approach the negotiation process, here are some tips that might be helpful. We’ll cover everything from how to introduce the idea of negotiation to closing the deal.
Set Up The Opportunity For Negotiation
The first step is to make sure that you’ve set up the right environment for negotiation. This means taking care of a few key items so that both parties feel that they have something to gain from negotiation. The most important of these items are:
- The proposal or contract needs to be in written format so that there aren’t any discrepancies between what was said during the interview and what is written in the proposal.
- The proposal or contract needs to be signed by both parties. This way there will be no disagreements about the terms. It also creates a permanent record that the parties agreed to certain terms and both parties are bound by them.
- The proposal or contract needs to be presented to the employee in a suitable manner (i.e. something that will motivate them to negotiate). Typically, this would mean handing it over during a meeting or e-mailing it to the employee. Doing it over the phone isn’t usually desirable because it could easily end up being misinterpreted.
- The proposal or contract needs to be explained to the employee in a manner that is easy to understand. This could mean using plain language or even adding some technical Jargon if necessary. A simple ‘Your review of my resume indicates that I can do the job you’re offering’ doesn’t provide the employee with enough information about the process.
- The proposal or contract needs to contain all the important information regarding the role, responsibilities and required skills. Including this information in an e-mail can be useful, but putting it in writing provides even more clarity. It also makes it easier for both parties to refer to it during the negotiation process.
- The proposal or contract needs to be reviewed by the employee before they begin negotiating. This will help ensure that all their questions are answered and there are no misunderstandings about the terms. It also provides an opportunity for the employee to ask for clarification on anything that might be unclear. It’s often the case that employers will add additional requirements after the interview process has ended. In these cases, having the proposal or contract written beforehand will make adding these requirements much easier.
- The proposal or contract needs to be amended or updated whenever it’s necessary. This is particularly important if one of the parties discovers that they’re not accurately reflecting the agreement that was made during the negotiation process. An updated version of the proposal can then be presented to the employee so that they have everything they need to make a decision. As an HR person, it’s your job to ensure that the terms of the contract are fair and agreed to by both parties. This requires continuous communication and reviewing of the contract to ensure that it remains up-to-date.
- The proposal or contract needs to be presented to the employee in a manner that is easy to understand. This could mean using plain language or even adding some technical Jargon if necessary. A simple ‘Your review of my resume indicates that I can do the job you’re offering�>’ doesn’t provide the employee with enough information about the process.
- The employee should negotiate for both benefits and pay. While it might seem obvious, it’s worth mentioning that some employers will only offer part of the compensation that was agreed upon during the interview process. In order to secure the other part, the employee will then need to negotiate. This can be rather tricky and may require some legal advice. But, as a general rule of thumb, the more experienced the employee, the more leeway they have to ask for additional compensation.
- As a rule of thumb, it is usually a good idea to include a summary of all the key points at the end of a proposal or contract. This way, everyone will know what was agreed upon and there won’t be any misunderstandings about the terms. Including a summary of the key points at the end of the proposal or contract is also useful for employees who have to review the contract later on. This will assist them in remembering what was agreed upon and make any needed amendments easier to locate.
How To Approach Negotiation
Once you’ve set up the environment for negotiation, it’s time to begin the process. The general rule of thumb here is: