How can you leverage your current position to negotiate better contract terms?

1 Know your value

Before you enter any negotiation, you need to know your value in the market and in your organization. Research the average salary and benefits for your role, industry, and location. Identify your unique skills, achievements, and contributions that make you stand out from the crowd. Quantify your impact on the bottom line, customer satisfaction, or team performance. This will help you set a realistic and fair target range for your contract terms, and also give you evidence to back up your requests.

2 Understand your leverage

Leverage is the degree of influence you have over the other party in a negotiation. The more leverage you have, the more likely you are to get what you want. To assess your leverage, consider the following factors: How satisfied are you with your current contract? How much does your employer need you? How easy or hard is it for you to find another job? How strong is your relationship with your manager and colleagues? How flexible are you on the contract terms? The answers to these questions will help you determine your bargaining power and your best alternative to a negotiated agreement (BATNA).

3 Prepare your proposal

Once you have a clear idea of your value and leverage, you need to prepare a proposal that outlines your desired contract terms. Be specific and realistic about what you want, and prioritize the most important issues for you. For example, you may want a higher salary, more vacation days, a flexible schedule, or a bonus scheme. Think about how you will justify your proposal with facts and figures, and how you will address any potential objections or concerns from your employer. Also, prepare some alternatives or trade-offs that you are willing to accept or offer in case of a deadlock.

4 Communicate effectively

When you are ready to present your proposal, choose the right time and mode of communication. Ideally, you want to negotiate face-to-face or via video call, rather than email or phone. This will allow you to build rapport, read body language, and respond to feedback. Schedule a meeting with your manager or the relevant decision-maker, and make sure you have enough time and privacy. During the negotiation, be confident, respectful, and assertive. Use positive and collaborative language, and avoid ultimatums or threats. Listen actively, ask open-ended questions, and acknowledge the other party's interests and needs.

5 Close the deal

After you have exchanged proposals and counter-proposals, you need to close the deal and secure your contract terms. To do this, you need to identify the zone of possible agreement (ZOPA), which is the range of outcomes that both parties are willing to accept. You can use techniques such as anchoring, framing, or splitting the difference to reach a mutually beneficial agreement. Once you have agreed on the main terms, confirm them in writing and ask for a formal contract. Review the contract carefully before signing it, and celebrate your success.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?