When offered a job, you are in a unique position to negotiate and establish yourself as a valuable asset. You do not want to demand a price too high but something reasonable with your level of experience and the market rate. A drafted employment agreement sets out expectations the company has from you, the remuneration they are willing to give and the obligations they have towards you.
It is common to accept any offer, however is bad practice. Take your time, read the contents of the offer letter carefully and tell the employer that you will get back to them. It gives you more time to evaluate your options. If the employer needs an instant decision they confirm a date when a meeting can be held to negotiate terms, this should be as soon as possible and ideally before the job start date.
It can be extremely difficult to self-evaluate certain aspects, all are especially relevant if the employee would be losing options or other benefits for making the job switch, these would include such areas as:-
- Evaluating your “worth” to the company and seeking a fair salary based on this;
- What special arrangements will need to be agreed upon, such as pre-booked holidays
- Rises – agree set increases on pay over the next few years
- Promotion / demotion
- Agreed to sign bonus
- Place of employment, the potential for working from home
- Additional allowances if required to work abroad
The scope of the employment and responsibilities
Is the employee allowed to be involved in other activities (e.g., a directorship on other Boards, involvement in community or voluntary activities). These questions help you understand your role in the organisation, your scope to grow and check if you’re being compensated enough for the work you are expected to do.
Additional benefits
These are often specified in an employment contract. It includes other benefits that come as part of your job apart from compensation. If these aren’t specified the employee can ask about it. They include:
- Health and medical (including spouse and dependent coverage)
- Disability
- Pension
- Cafeteria Plan
- Life insurance
- Stock option/stock grant
- Vision / Dental / Mental health provisions
- Executive financial counselling
- Loans at low-interest rates
- Paid vacation
- Maternity/paternity leave.
Essential terms
You will need to know the circumstances when your employment can be terminated and the resulting consequences need to be specified and stated clearly.
Some important questions to note are;
- How long is the employment term or is the employment “at-will”?
- What are the grounds on which the company can terminate the employee?
- How many weeks notice does an employee or employer need to provide before terminating the contract?
- Would the employee get compensated upon termination?
- What are the causes to fire the employee?
Confidentiality / Non Disclosure Agreement
The employee must be careful not to use or divulge confidential information of a prior employer – the new employer will often want a covenant from the employee prohibiting such use or disclosure. The employee must check for any confidentiality restrictions as they may be held accountable for a breach of confidentiality.
Dispute resolution
The company must provide a dispute resolution clause to settle disputes. If this clause specifies arbitration as the mode of settling the dispute, you might not be able to take your employer to court for contractual matters unless it is a matter of human rights or consumer rights.
You need to read, understand and take into account your obligations to the organisation and the employers obligations towards you. Researching the company, job title, type of work, industry and the people working in the organisation would put you in a better negotiating stance.
Should you be approached by an employer to move jobs then please consider letting us help you get the best deal, moving employers have obvious risks and you need to have as much information confirmed to allow you to make the right decision for you.
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