How To Negotiate Employee Contracts Like A Pro

How To Negotiate Employee Contracts Like A Pro

How To Negotiate Employee Contracts Like A Pro

Picture this….

Your business is in the process of profitability scaling, and growing… and you just found the ultimate “Rock Star Applicant” (see recent blog post to find out if they are a “Rock Star Applicant”!)

*They fit the culture of your organization perfectly….

*They have the exact skill-set and experience that your company needs to scale and grow at a faster rate…

*They are positive, energetic, and willing to do whatever it takes to get the job done…

At this point, the only thing left to do is negotiate the contractual agreement so that this “Rock Star” becomes a permanent member of your winning organization.

Luckily for you, today’s blog post will share some powerful strategies to help you negotiate employee contracts like a pro.

This way your business is protected, and the contract is well negotiated so both you and your new employee win!

On that note, be sure to read every single word on today’s blog post because it’s crucial to the success of your future negotiations, o.k.?

Contract Negotiation Is A Breeze When You Follow These Steps…

Step #1: Clearly Define Role And Responsibilities And Perks Of Your New Hire

If you’re going to come to an agreement in writing, you must first clearly define exactly what you and your new hire are going to agree to in writing.

For best results, be sure to include these areas: 

*Clearly define the specific role of your new hire.

*Clearly outline the “exact” responsibilities that this employee is required to perform in this role with a specific clause stating that the roles and responsibilities that may increase or decrease depending on the needs of the company.

*Be sure to state the exact location of where the new hire is designated to work. (Ex: remote, on-site, travel, relocation, etc.)

*Be sure to specify if the employment is seasonal, part-time, full-time, or on-call.

*Be sure to specify specific guidelines for time off in terms of paid, or unpaid after the specific # of days of employment.

*Be sure to specify if the employment is conditional or guaranteed.

Step #2: Clearly And Explicitly Define How Your New Hire Will Be Compensated

One of the most important elements of a contractual agreement is to clearly define exactly how your new hire will be compensated in writing.

For best results, be sure to include these areas:

*Clearly outline in writing if your hire will be compensated with an hourly wage, a salary, a share of equity, incentives, or a combination of any of these areas.

*If compensation is hourly, specify hourly wage, as well as time periods eligible for incremental increases in this area.

*If compensation is salary, specify the starting amount as well as if their is room to increase on an annual basis.

*If compensation is based on a shared equity agreement then specify % of equity.

*If incentives like performance bonuses, perks like health, dental, and stock options are available to your new hire, please be sure to specify them in writing, as well as what qualifications they will have to receive them, as well as what can disqualify them from receiving any of these special incentives.

signing a contract

Step #3: Clearly Define What Happens At The End Of Your Work Together

Business relationships don’t always last FOREVER, so be sure to clearly outline exactly how you and your new hire will end your business relationship in writing.

For best results, be sure to include these areas:

*If you have specific “trade secrets” that your company uses, specify in writing that your competitor cannot use your competitive advantage against you for their own personal gain by having them sign a “non-compete agreement”.

*If you are going to use a “non-compete agreement”, be sure to specify the length of time that the agreement is for, the geographic area it covers, as well as the specific areas and business endeavors that it would prohibit them from competing with you in.

*If you’re not sure what length of time to specify in your “non-compete agreement”, be aware that 6 months – 2 years is a favorable period time.

*Be clear…be direct…be firm… and most importantly be fair because they are part of your team!

Step #4: Seek Legal Counsel To Review Your Contractual Agreement

The third and most important step is for you as the business owner to seek out legal counsel to review your contractual agreement.

For best results, we suggest these 2 services to aid you in these areas:

You Have The Winning Formula

Congratulations – you now possess 4 highly effective strategies to help you streamline your contract negotiation process.

The only thing now for you to do now is simply to implement it.

At the end of the day, accountability is a crucial factor in both the successes and failures in your business venture.

Stick to the script, and you’ll begin to see the positive results that you’re looking for.

Talk Soon,
Michael James

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