You're worth it

Being humble won't get you anywhere when it comes to contract negotiations, writes Owen Thomson.

A decade ago only sports stars and corporate executives could look forward to careers punctuated by regular contract negotiations.
 
But due to a fundamental shift in the employment landscape, the rest of us are now more likely than ever to find ourselves in a similar position.

About 30 per cent of the national workforce is now employed on time-based contracts, with experts predicting this figure will rise to 50 per cent by 2015.

Paul Baker, a director at recruitment company Hudson, says: "This is the most significant change in the Australian labour market I have witnessed in more than 30 years."

"Employees on time-based contracts extend across all levels of the workforce. This trend is consumer-driven in a supply-short market, particularly by the X- and Y-generation, as well as baby-boomers seeking to extend their working life."

The message, it seems, is clear: if we're not already comfortable with regularly negotiating our pay and entitlements, we'd better get used to it.

At 22, Laura Heath is no stranger to the process. A specialist in the field of two- and three-dimensional computer animation, she has negotiated around 20 project contracts in the past three years.

But that's not to say she always finds the process enjoyable.

"Negotiating would have to be the most uncomfortable and awkward part of the job, particularly when you really like the company and the people you're working with" she says.
 
"You don't want to sabotage the opportunity by asking too much, but then again you don't want to undervalue what you're worth."

Executive coach Chris Simpson, from PHR Consulting, says negotiations need not be feared.

"You need to start with the mindset that everything is up for negotiation, including start and finish time, how much leave you want as well as the kinds of benefits you want" he says.

"You've got to think about the supply and demand of your skill set and experience and ask yourself: should there be a premium rate for those skills?"

He says employees shouldn't be afraid to ask for what they're worth, even putting their price in the upper ranges of acceptable limits if they can justify it.

"You should do the research first," he says.

"You've got to come up with a figure that's in tune with the market. If it's below market rate they're going to perhaps question whether you're right for the role. If it's above, there's a higher expectation of your delivery."

Calum Coburn, a negotiation expert from www.negotiations.com, also stresses the importance of thorough research - even when renegotiating with an existing employer.
 
"Negotiations for positions and salaries are hugely predictable, but so many people neglect to prepare," he says.

"There are books and websites written about them. Do a bit of research and come up with the most popular questions and answers.That takes most of the pressure off. If you've been working for the employer for a while, you know what sort of questions they're going to throw at you and you should know what questions you're going to ask them. Write down your questions and answers beforehand."

Heath says research and thorough preparation helped increase her confidence going into negotiations.
 
"Through networking with contacts and friends, I was able to judge a rate that was fair to the level of the skill and experience I had. I was also lucky enough to work with a coach. First, she was able to get me to visualise the type of salary I wanted as well as the type of company and project I wanted to be involved with."

"Then she was able to build up confidence in my approach to negotiating a salary by getting me to think about what qualities and skills I had to offer, instead of thinking what I lacked."

Simpson says employees should focus on their skills and play down any weaknesses when negotiating new contracts.

"It's no time to be humble," he says. "It's about your life and your career and also your sense of self-worth. You should be firm and stick to your guns and say, 'this is what I require"

"If you're too demanding they'll just write you off, but if you're humble they may question whether you have the strength of character to do the role."

Achieving the best outcome comes down to more than just making a strong case for yourself.

Coburn says the quickest way to increase your desirability is to have other employment options.

"Get other offers on the table before you go to your employer, even if you want to work only for your employer and you have zero intention of working for anyone else," he says.

"If you're ready to walk out that door and you have somebody willing to give you a better offer, that gives you incredible leverage."

"It makes you worth more because someone else is willing to pay you more, which is a strange dynamic in today's workplace. It's only when we have the threat of losing someone that we find them valuable."

But be careful, Coburn says. "You don't want to flaunt your options in your employer's face. It's usually enough to let them know you have been looking in the job market."

Tips for negotiating:
 
* Start with the mindset that everything is up for negotiation, including start and finish time, annual leave and benefits.

* Weigh up the supply and demand of your skills set and ask yourself how much you are worth. Don't be afraid to ask for what you're worth, but do your research. You have got to come up with a figure that is in tune with the market.

* Even if you're renegotiating with an existing employer, make sure you prepare thoroughly. Think about the questions they might ask and prepare good answers.

* Don't be too aggressive or submissive but don't be afraid to be firm and stick to your guns. It's your life and career.

* Even if you would never leave your current employer, have other offers on the table before you enter into negotiations. Proof that you are a desirable employee increases your worth and gives you incredible leverage.

Published: 19 July 2008