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Few people realize it, but the most important thing you can negotiate is not a dollar figure.  Far more important is the nature of the job itself.  Once the authority, responsibility and budget associated with a job have been determined, then a given salary range will be indicated.  If you can shape the job to your liking, then it is more than likely you will have little difficulty in negotiating a suitable dollar figure.

In order to fully appreciate the significance of negotiating the nature of the job, it is important to understand the continually changing nature of any job.  By definition, a job is simply a group of duties and responsibilities assigned to an individual who is expected to achieve certain goals.  In any active, progressive organization, those duties and responsibilities will seldom stay exactly the same for any length of time.  In fact, they may even change every day, even if only slightly and almost imperceptibly.

Just as we do not notice the daily changes in a child during the growth spurt, neither do we recognize the changes in a job.  When we look at a picture of the child at ten, and then again at age twelve, we are usually surprised by the dramatic changes.  Likewise, if you were to look carefully at the nature of many jobs in a progressive company, comparing them to what they were just two or three years ago, you would no doubt see significant changes. 

It is this factor of continuing change which enables you to negotiate redefinition of a job which may not be to your liking.  At any point in your discussions, you are free to suggest the addition or deletion of certain responsibilities which may be associated with the job.  After all, the job description is usually one person’s interpretation of the appropriate responsibilities, at one point in time.

EXAMPLES OF SITUATIONS WHERE PEOPLE REDEFINED JOBS

Renegotiating the nature of the job is a fairly commonplace tactic today, and there are literally dozens of examples that might be used.  A few which will give you a fairly good idea of what can be accomplished include:

¨       The president of a $17 million electronics firm thought he needed three people at Manager level for marketing, engineering and production.  The candidate who was originally considered for the marketing position convinced the president that he would be better off with one executive who had strong general management capabilities, could fill one of the primary functions himself, and work directly with existing personnel in the other functions.  A new job was created which commanded a $40,000 base salary, whereas the original position had a range between $25,000 and $28,000.

¨       A general management executive was made an offer to run one company for a conglomerate.  He did not discuss money, but instead continued to negotiate the level of responsibility.  When the final offer was made, his job was to be responsible for five companies, not one.  The compensation, which originally carried a base salary of about $80,000, was worth $150,000 during the first year.

¨       A plastics company ran an ad for a Plant Manager at $28,000.  The candidate who was ultimately hired convinced the president that the real need was for a Vice President of Operations, who could address a number of other problems and opportunities which the company faced, similar to those he had already experienced at another company.  He was hired at a $40,000 base, with a substantial incentive compensation which made the job worth more than $60,000.

THE PREFERRED METHOD FOR INTRODUCING

THE SUBJECT OF RENEGOTIATION

In many instances, the subject of redefining a job can be a very delicate and sensitive one.  It is important, therefore, that you use the following principles when introducing the subject:

1.     Start with a positive comment about the job and/or the company.

2.     Suggest that the company might realize added benefit from changing the character of the job slightly.

3.     Offer to share your thoughts on some of the specific additions or deletions which might help improve the job’s effectiveness.

Following those principles, your opening might proceed along these lines:

“Tom, there is on doubt that whoever fills this job is going to play a key role in helping the company reach its objectives.  In many ways, you have here an ideal situation in terms of the challenges presented and the opportunity for the right person to make valuable contributions in a very short time.  In giving careful consideration to the goals which you outlined, I believe I could be of most help to the company if the job included some other responsibilities as well.  There are three or four specific areas where my past experience could make a big difference.  I would like to discuss them with you.  We may find that some or all of them should be included as a part of this position.”

Of course, by the time you get to that stage, you would have had the opportunity to identify those precise areas you would like to add.  This presumes a good deal of research and planning on your part, with respect to an analysis of the organization’s need and opportunities, matched up to you skill areas.

AVOIDING PREMATURE DISCUSSIONS OF MONEY

One of the cardinal rules for negotiating is not to mention money until the company is sold on you.  This is easier said than done, however, when an interview begins something like this:

“Jim, before we get started, it’s important for me to know how much money you are looking for.  We may as well not waste our time if it’s totally out of the ball park.”

The principle you should always keep in mind is:  you don’t have to answer the question!  Instead, you can avoid a direct answer with any number of responses.  Here are two examples:

“Bill, I’m glad you are ready to discuss money.  It shows sincere interest.  I too want to discuss money today, and I don’t really think it’s going to be a problem.  But if you don’t mind, I’d like to put that off until a little bit later so I can discuss it with you more intelligently.  My requirements for compensation have to do with a lot more than just a single starting figure.  There is the question of incentive compensation, chances for growth, and many other factors.  Incidentally, I noticed that the job description listed previous bottom-line responsibility as a requirement.  Will this job have  P&L responsibility?”

or

“I appreciate your direct and candid style.  Let me be equally candid.  I would not have presumed to take up your time if I did not have a fairly good idea of the range this company would be willing to pay for someone with my background.  This is a first rate organization, and if we can agree that there are needs and opportunities where my experience and skills fit the bill, I have no doubt whatsoever that we will have no problem agreeing on compensation.  Frankly, that’s not so much a concern to me as the more basic question, which is whether or not you have the needs that would make you want me.  As a matter-of-fact, I read in the Annual Report that you expect to enter a number of new markets with your industrial laser line.  Is that where this job fits in?”

Please notice that in neither case was the question answered.  Instead it was avoided.  Not only that, after the avoidance, the conversation was steered to a different subject, that of the nature of the job itself.

You may or may not prefer the approaches cited as examples.  Whether you use them or not, make sure that you do arrive at a response which follows these principles and which is comfortable for you.  Then rehearse it with a tape recorder until it is firmly imbedded in your mind, so that you do not need to think about it when the situation occurs in an interview.  It should be an automatic response by that time.  The more carefully you rehearse it, the more spontaneous and smooth will be your response during the interview.

HOW TO GET THE EMPLOYER TO NAME A FIGURE FIRST WITHOUT GETTING INTO AN ADVERSARIAL POSITION

Under normal circumstances your avoidance phrases will lead to a discussion of the job requirements and how you might fill them.  Some interviewers will be more persistent, however, and some will come back to the question after you have discussed the job itself.  You may get a comment such as:

“Ann, I have to agree that your experience as you describe it certainly fits many of our requirements.  We might have a match here.  But you know, you never did tell me what kind of money you expect to make.”

Do not retort with, “How much are you offering?”  The problem with that answer is that it is extremely direct, and counters a question with a question.  It might be interpreted as hostile by some interviewers, or at the very least annoy them.  Nevertheless, it is the question you want to ask because if you name a figure first, it may be substantially less than the employer was willing to pay.

The solution here is to remember the first principle, that you do not have to answer the question directly.  Instead, remember that when someone asks what kink of money you are looking for, you have a right to assume that they are interested in making an offer.  You can turn the conversation in that direction, with a comment such as:

            “Oh, does that mean you are interested in making me an offer?”

or

“Tell me, your wanting to talk money at this time, does it mean that if we can settle the money matters, then we are well on the way to my receiving an offer from you?”

In effect, what you have just done with a statement like that is to qualify the actual level of interest on the part of the interviewer, and to put the entire conversation in its proper perspective.  You may expect that you will get either a positive or a negative response.  It does not matter.  Your reply would be the same in either event.

It should follow the principle of the U-turn, where you back away from a direct confrontation, turn the conversation in another direction, then come back with a question about the range they have in mind.  You will accomplish the same thing that you would with a direct response, but avoid the danger of arousing hostility or resentment on the part of the interviewer.  Your U-turn statement might go like this:

First Part:      “Oh, I see.  Well, for my part, I have been most interested in  the ideal situation, in terms of the challenges the job provides, the growth possibilities and the people I will be working with.”

Second Part:  “And it seems from our conversation that I have found that here.  The job that needs to be done, the commitment you have to doing it, and my role in the overall effort all appeal to me strongly.”

Third Part:     “And while money is important, I haven’t settled on any single magic number because these other considerations are more important.  Now that you bring the subject up, though, tell me, what kind of range did you have in mind for this position?”

By using this approach, you maintained a gracious and friendly atmosphere, while still avoiding a direct answer to the question.  In many instances, you will find that the reply is in fact a stated range from the employer.

In those instances where the response of the employer is still non-committal, you may be forced to give a range yourself.  If so, have an estimate of what the job is worth before you begin discussions.  You may estimate this from what others in the company are paid, from the value of similar positions in other companies in the industry, or from an agency or recruiter.  Research is key.

Give a range which surrounds what you believe to be the top end of the actual range.  For instance, if you estimate the range between $30,000 and $40,000, you might estimate “from the high thirties to the low forties.”  At the same time, you can let them know that you are a “top of the range performer”.

WHAT TO DO WHEN YOU LIKE THE COMPANY AND THE JOB,

BUT NOT THE SALARY

Countless times job seekers have been offered positions at a salary they consider unacceptable, so they simply walk away.  What they don’t realize is that they have walked away from what could have been an ideal opportunity.  Had they been aware of the following technique, they might well have been able to keep a dialogue open and get not only the job they wanted, but also the salary.  If you have been made an offer for a job you like, but the salary is too low, use this approach:

“John, first let me say that I am very happy that you decided to make me an offer.  I consider this company and this position to be of extremely high caliber, with substantial growth potential.  I wish I could say yes to you immediately, but frankly, I have difficulty with the level of the starting salary.  At the same time, I know that job classifications and salaries are not cast in bronze, and that they are often open to redefinition.

You and I have discussed the significance of this position, and how important it is to have a superior performer in this spot.  I think we both agree that I have the credentials.  If I were you, keeping in mind the importance of this position, I would be very suspicious of anyone who sits here and tells you that he/she can do this job well, and who still values himself/herself at a starting salary level of only (name the figure you were offered).

Is there any way we can possibly look at this entire thing again, with respect to the nature of the job and its responsibilities, perhaps with an eye toward upgrading job content, classification and starting salary?  For my part, I know that if you are willing to make a relatively small additional investment, I will be able to show you a handsome return on that investment many times over.  I sincerely, want to work for you, and I hope we can reach some adjustment.  Can we take another look at it?”

With a statement such as that, given in a sincere, low-key tone, you have questioned the basis of job valuation, opened the door for redefining the job and the compensation, but at the same time reaffirmed your enthusiasm for the company and the position.  Since you have little to lose because your other alternative is to simply walk away, this approach is a safe one, and it has also proven effective for many job seekers.

HANDLING “HOW MUCH MONEY ARE YOU MAKING?”

For the most part, you can treat this question just as you would, “How much are you looking for?”  The principle is the same:  avoid giving a direct answer.  The two examples given earlier would also be appropriate for this question.  Another response might be:

“I can appreciate why you might be concerned about that.  You want to be sure that the range you people have set up would be sufficient to attract someone with my capabilities.  If the job is right,  I know we will work out something that is agreeable to both of us, and I fully expect that I will fall within your normal ranges.  With respect to the job itself…” (start to bring the conversation around to the requirements of the job and its place in the overall effort).

This approach is simple, time-tested and effective.  In most instances, you will find that you can proceed to a discussion of the job and your talents before you return to the subject of money.  By that time you will have sold yourself effectively, so it would be appropriate to talk money.

The primary problem in revealing your present earnings comes about when an employer attempts to use the present compensation as a basis for the alary offer.  This is a common problem, and we will address it now.

WHAT TO DO WHEN AN EMPLOYER TRIES TO USE PRESENT

COMPENSATION AS A BASIS FOR A SALARY OFFER

Ideally, any offer should be based on the value of the position to the organization, but in reality most employers will attempt to buy talent at the lowest possible price, and will justify their offer by comparing it to your present compensation.  This can present a significant problem if you have been underpaid in the past or if you have developed talents which now enable you to perform at a significantly higher compensation level.

In such cases, the principle to follow is that of introducing other criteria on which to base the offer.  These can include the importance of the job itself, what you would have made with a raise had you elected to stay where you were, the total package compensation you had, ranges others have mentioned when considering you, or any other relevant basis.  Your comment might go like this:

“I can understand that you would consider your offer to be a fair increase over my past compensation.  But I think I should explain that the very reason I am here is that my contributions had far outweighed by compensation.  I know that the type of job I could handle, one such as you are offering, commanded a higher salary.  Please remember too, that my compensation package was (20% more than base figure).  Had I remained, I would have been due for a raise, which would have increased it to another 10%.  As a matter of fact, as you might expect I have talked to other people in the course of this job search, and when money has been mentioned, it has been more in the range of (name a range which is acceptable to you).”

Conclude your remarks with a request for the employer to reconsider the offer, based more on the value of the job itself, rather than past compensation.  Reaffirm your interest and enthusiasm for the job, the company and the people you have met.

HOW TO RAISE THE BASE SALARYOF AN OFFER YOU LIKE

In a well-run campaign, you are likely to receive offers which please you.  As the guidelines which follow point out, no matter how pleased you are, you are normally better advised not just to say yes immediately.  This is because in most instances you can negotiate for a higher base salary.  Employers often expect to negotiate, and if they have gone to a great deal of trouble interviewing a number of people before making an offer to you, the chances are that they are willing to go another 10% if that’s what it takes to make you happy.

The danger, of course, is that you might give the impression that you would be a dissatisfied employee, and that you are not really eager to join the company.

Be enthusiastic about EVERYTHING…except the base salary!

This is an extremely important principle.  Whenever you wish to bring out any negative, whether it is about money or the nature of the job, you will increase your bargaining position if you are first enthusiastic.  Having reassured the other party of your positivism and good intentions, you can then raise corresponding negatives or questions, without running the risk of their concluding that you are really not so interested after all.

Rehearse a statement, which lasts at least 30 seconds, in which you tell a company how enthusiastic you are.  Don’t rely on your spontaneous ability to express enthusiasm for 30 seconds when you get the offer.  Also, remember that if you rehearse for 30 seconds, when the actual offer comes, you will probably complete your enthusiasm statements in 15 seconds.

Any less than that is dangerous.  The employer may fail to appreciate your enthusiasm, and hear only the negative.  Put together whatever words you like, but make sure they fill the time.  Here is one version that has worked for some clients:

Be enthusiastic about EVERYTHING…

“Phil, I can’t tell you how happy I am to receive this offer from you.  As I have told you, to me this job represents the ideal situation.  The challenge is there, the commitment of the company to meet its goals is there, and my experience is precisely what is needed to make sure that things happen as they should.

What I’m excited about, though, is the fact that I will be working with the kind of people  feel comfortable with.  For my part, I felt a positive chemistry with all of the people I met.

Anyone would be proud to be a part of your organization, and if ever there were a day when I could say that I have made the most significant, single, positive career move in my life, this would have to be it.  Jane and I are going to go out tonight and celebrate, you can be sure of that.  This is certainly something worth celebrating.”

…EXCEPT the starting salary!

“Phil, I am very pleased that you have come back with this offer.  The only aspect of the whole thing that surprised me somewhat was the level of the starting salary.  I had thought you would come in just a little heavier.  Can you see your way clear to another $5,000?”

Generally, you might consider naming a figure which is 10% of the base salary offered.  When the request is phrased this way, the chances are minimal that the employer would withdraw the offer.  When this technique has been used, it has consistently resulted either in increased offers, or in a willingness to review the compensation package in a relatively short time.  The key to the effectiveness of the approach will lie in your ability to convey your enthusiasm before you ask for more money.

UNDERSTANDING SALARY SYSTEMS AND EMPLOYER ALTERNATIVES

In major corporations, the salary for most jobs is usually flexible within a specific range.  Even when a firm claims that the salary is “open”, you can be sure that the employer has an idea of what he is willing to pay to fill a position.

There are exceptions to this, namely, in smaller firms, in top spots and in those cases where an employer wants to hire you and will be willing to create a new position in order to bring you aboard.  Obviously, these situations will present your best opportunity for negotiating something attractive.

The most common salary systems ordinarily have a range established which differs by half the amount of the minimum salary.  For example, a company may have a job which can pay form $30,000 to $45,000.  While they may hope to hire an individual at the lowest figure possible, the usual procedure would be to allow the direct superior to offer any amount between the minimum (i.e. $30,000) and the mid-point (i.e. $37,500).

As a general rule, the lower the amount at which an individual is hired, the higher the annual percentage increase for which he is eligible.  As an alternative, some companies follow a policy which states that the lower a person’s salary (within the range), the more frequent the salary review.

WHEN TO DISCLOSE SALARY

If your salary is relatively low in terms of the positions which you hope to explore, you should obviously avoid stating it before an interview.  In these cases, you would not want to negotiate from your present base, and divulging it in advance would only put you at a disadvantage.

There are certain individuals who have successfully conducted campaigns, and negotiated offers, without ever revealing their current income.  However, despite some successes, most employers will not tolerate an individual’s excuses for not providing the information.  The point remains that if your present earnings are far below your goals, you should attempt to avoid salary disclosure for as long as possible.

Regardless of your talents, many employers will evaluate your potential worth to them in terms of present earnings.  For example, if you were earning $22,000, you might not be considered by certain people for a $35,000 position.  Someone else could have the same set of credentials but be earning $30,000, and the firm would welcome him as an eligible applicant.

If you’re looking for a substantial increase, one of the keys to your negotiating success will relate to your ability to sell potential accomplishments…the benefits which you can bring someone.

When your salary is high relative to your age and experience, you may also not wish to disclose it at an early stage of negotiations.  Making a decision in this regard must be based upon each individual situation.  There are times when it is wise to state your earnings in the beginning.  Obviously, you do not want to waste time on positions which eventually prove disappointing.

One way to disclose salary which is almost always effective involves communicating the growth which you have achieved over a specific period of time.  For example, you may wish to cite the percentage growth in compensation attained in your last position.  People associate salary growth with performance, and if you have something to say in this regard, it can frequently raise the offer.

Needless to say, when speaking of previously earned compensation, you must always refer to your total earnings if you are eligible for a bonus, commission, profit sharing, etc.

TELLING THE TRUTH ABOUT PRESENT INCOME

In terms of financial matters in job-hunting, there can be little doubt that some people are very imaginative fabricators.  However, before you exaggerate your present earnings, you should be aware that it is very easy for an organization to verify your real income.

In actual practice, most firms will not seek a verification of present salary, and if you do claim higher earnings, you probably will survive.  Nevertheless, if anyone in a given firm has reason to suspect your claim, they have a number of avenues open to them.  Some of these are as follows:

1.     They may ask to see a payroll stub from your present employer.

2.     They may ask to see a copy of your last tax statement, or your W-2 income summary form.

3.     They may attempt to make a written or phone verification with your former supervisor and/or personnel department.

4.     They may rely on an outside agency for an investigation of your background and earnings.  (Many of these firms can perform a very accurate check on any earnings claim.)

If you have a low salary and feel you must exaggerate to be considered, be sure to hedge in terms of expected bonus or increase in salary.  In other words, state your present salary as it is, but if you have a remote change of shortly receiving a raise or a bonus, be sure to make that level of earnings the basis for your negotiations.

NEGOTIATING FOR MAXIMUM SALARY

If you are presently employed, during the initial stages of your campaign you should maintain firm salary objectives.  You will need to discipline yourself against letting people discourage you, but you should be sure to aim for what you believe you are really worth.

Obviously, if you are unemployed, or otherwise under immediate pressure to make a change, this will affect the posture you take.  For most people, the following guidelines should prove of some assistance.

1.     Set optimistic goals for yourself and always sell quality rather than low starting price.  If you are interested in change for financial reasons, you may be looking for at least a 20% increase in net annual take-home pay.

If you allow yourself to be talked into a 10% or 15% increase, you may only be fooling yourself.  This is particularly significant because there are people from $10,000 through $100,000 who have been getting increases with ease.  Don’t sell yourself short.

2.     When people ask you what you are looking for, try to avoid the question until the firm is completely sold on you.  Once you have committed yourself, when the potential employer meets your requirements, he will be looking for immediate acceptance of the job.

3.     Before you do any negotiating, you should always make sure that the employer is going to extend an offer.  (Complete the sale before you try to close the deal.)  Remember that your first objective is to have an employer make up his mind on hiring you.  If he isn’t sure about you, premature financial discussions may turn him off very quickly.

4.     The finer art of negotiating requires some precise insight into the other person’s alternatives, along with a knack for phrasing your needs so that they seem very reasonable. 

You will have to communicate your point of view or the background to your thinking before you get to the stage where you are pinned down on a number.  Make it easy for the employer to have some empathy with your situation.

5.     During your discussions you should focus on standard of living and short-term take home pay…as opposed to gross annual income.  Also, depending on how much you are presently earning, it may be better to speak in terms of “percentages” instead of “thousands of dollars”.

6.     Regardless of how excited you may be when you receive an offer, you should never accept it on the spot.  Always ask for time to think it over.  Then if  you want the job you should try to negotiate a better financial package.

Any good organization will never withdraw an offer just because you think you are worth more.  The worst that could happen would be that they would hold firm on their original offer.

If you’re looking for the maximum, when you negotiate you should be absolutely enthused about everything but the financial aspect.  This means being completely outgoing in your excitement about the job…about your future boss…about the firm…about the future opportunity.  In short, everything but the money.

At this point, one thing you might say is that after carefully reviewing your situation, the intangible costs of the move and other alternatives, you wish they could see their way through to meeting your needs.  If that doesn’t work, then try to get them to meet you halfway.

If you do not meet with any success in your negotiations, then you can always shift from negotiations concerning the present, and focus instead on the future.  Here we are referring to a review after six months, a better title, an automatic increase after 12 months, etc.  These are easy things for an employer to give.

Because of inflation the whole area of salary negotiations has become more fluid.  Many employers have been focused to set aside their old guidelines in order to hire attractive candidates.  Still, many people allow themselves to be deceived by employers who talk about increases in gross annual dollars.

From a financial standpoint, what you must be concerned with are immediate and potential opportunities for improving your standard of living.  In line with this, we recommend that before accepting an offer, you calculate just what an increase means in terms of “added funds on a weekly basis”.  This generally puts things into a more meaningful perspective.

EVALUATING/ACCEPTING OFFERS

As a job seeker, your most difficult decision may involve the evaluation of “comparative offers”.  If you’re young, or just starting out, the decision may be quite easy.  Our recommendation is always put future opportunity over starting salary.

If you are an executive, there are very few “rules of thumb” which we can provide.  However, we have found that it does help to take the time to write the positives and negatives of comparative offers on paper.  While it is always convenient if the highest offer is also the position with the most growth potential, things rarely, if ever, seem to work out that way.

When you decide to accept a job, you should always accept it verbally, and then confirm your acceptance in writing.  The purpose of the letter is to restate the terms under which you have agreed to work for the organization.  Hopefully, they will do the same.

CONTRACTS AND TERMINATION  AGREEMENTS

It is very difficult to generalize about employment contracts.  In recent years, many organizations have been more forceful in taking a stand against them.  Their reasons for doing so are quite simple.  Contracts usually guarantee employees a certain compensation for a prescribed length of time…as long as they work “to the best of their abilities in normal business hours”.  Employers are guaranteed very little, and the individual can usually break a contract quite easily.

On the other hand, corporations are usually forced into financial settlement if they choose to dismiss an executive under contract.  When arguments over broken contracts cannot be resolved, the courts most frequently rule in favor of the individual.

Despite corporate policies against contracts, it is difficult to conceive of any firm which would be willing to lose a sought-after executive simply to maintain its policy.  A contract is just one additional element in the total negotiable as are any matters relating to salary, bonuses, stock option participation, etc.

If you can possible arrange it, a contract will usually be to your advantage.  While you can always be dropped, a contract can provide you a measure of financial security and a certain degree of independence from corporate politics.

In many cases, the mere possession of a contract may be the most significant status symbol that exists in a firm.  For senior executives a contract usually has a higher priority than amount of salary.  This is especially true if a corporation is likely to experience turnover in top management, or if a firm is occasionally the subject of merger or acquisition discussions.

As a general rule, we feel that anyone above $50,000 should never be reluctant to ask for a contract.  A request, as opposed to a demand will never result in a revoked job offer, and again there is always a chance that they may accede to your request.  Don’t be deterred by the fact that you have heard that the firm does not give contracts.  There is always a first time for everything, and as previously mentioned, if a firm really wants you, a contract request will not stand in its way.

This is not meant to imply that the contract will be won easily.  You should be aware that your first request may result in a number of negatively phrased routine comments.  The most common ploy is to hint that your request reflects a lack of confidence in the firm, their management, or in your own ability.  They may also ask you if you are the kind of executive who values security more than opportunity.  You should anticipate comments such as:

“Your contract request makes me wonder if you have the self-confidence and entrepreneurial qualities which you’ve indicated.  We’re also very concerned about your trust in us.  If our relationship is going to be as successful as we all plan, I think it should begin on a note of mutual trust and integrity.”

As long as you anticipate them, these types of questions should be easy to finesse.  There is usually only one major disadvantage that goes along with most contracts.  If you request one, your employer may insist on inserting a protective clause which would limit your ability to take future employment with a competitor.  The insertion of such a clause is often requested as a show of good faith, and is quite hard to refuse without creating a serious doubt in the mind of your new employer.

If you are at an executive level, there are certain companies with whom you must be very firm in your request for a contract.  These would include companies in financial trouble, firms that are merger or acquisition candidates or those which have just been merged or acquired, family-controlled and private companies, and companies where one individual personally dominates the environment.

In these unstable situations, you might consider seeking a three-year contract that covers your minimum compensation, and that also has provisions for such things as bonuses, deferred compensation, moving expenses, annual renegotiation upwards, and profit sharing.

You also may be able to negotiate life insurance, release with compensation in case of merger, salary benefits to your family in case of death, special reimbursements for foreign service, and consulting fees in the event of termination after the end of the contract period.  In any event, don’t treat contract terms lightly and be sure to review all the fine print with a competent lawyer.

In recent years, there has been a considerable growth in the use of “termination agreements”.  In most cases these are substitutes for employment contracts.  Termination agreements are usually in the form of a short letter in which an employer agrees to an irrevocable severance compensation.  We personally favor the idea of these agreements and think that they can be devised to adequately serve the needs of most executive job candidates.

In some industries, these agreements have already become quite common at salary levels of about $50,000.  In most cases, they provide for a minimum severance compensation of six months salary, along with relocation expenses, professional outplacement assistance, and the extension of all insurance benefits for a period of twelve months.

Any agreement that you accept should explicitly cover any and all situations under which an employer may choose to terminate your services.

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