7 Questions to Prepare for Your Next Employment Contract

What Is Your Ideal Next Step?

Before you negotiate with the other side, check in with yourself. How much do you want to work there, or is your ideal next step something else (e.g., another nonprofit, career pivot to a different sector)? If your introspection reveals that you’d like a change, your negotiation might focus on things that support that. For example, you might press for a shorter contract, a reduced schedule, or a consulting arrangement instead of continuing as staff.

What Is Your Ideal Next Contract?

If you know you want to stay, decide what your next contract should include. Compensation covers a wide range of negotiable items: base salary, bonus, retirement benefits, transportation reimbursement, tuition and other learning and development resources, and paid time off. Beyond financial particulars, you may want more resources, such as staff, contractors, or a bigger technology budget. If there are resources that impact how well you can do your job, these should be agreed upon in advance and in writing.

What Is the Current Market Value for Your Role?

Depending on when you last negotiated your contract (or last looked for a job), the current market value for your role may have changed. Talk to recruiters who specialize in hiring for your field and at your level. Get input from peers and members of professional associations. If you have friends in HR, see if they can share compensation surveys. Try to get data for similarly-sized organizations in similar locations. Remember that you’re looking for overall compensation data, not just salary, since additional benefits and pay can add a considerable amount on top of salary.

Have You Exceeded Expectations or Underperformed?

In addition to what the outside market is paying, look at what your individual performance might command. If you recently had a performance review, that should give you an indication of how highly (or not) you are regarded. If you recently finished projects or initiatives with measurable results, take an honest look at whether you exceeded expectations or underperformed. For a nonprofit ED, metrics include fundraising, improvements to the constituents you serve, and visibility for the organization.

How Will This Negotiation Unfold?

Beyond your own side, assess the party across the table. Will this negotiation be collaborative and amicable, or potentially combative? Are you expecting a low offer you’ll have to negotiate up, or will the discussion be mostly about smaller details? Are there many decision makers to corral—for senior roles, Board members and company counsel may need to give input and approvals—or a lone voice to focus on? Finally, how do those decision makers decide: market data, emotional appeals, or past performance?

How Strong Is Your Negotiating Position?

Your negotiating position is based on alternatives open to you and to the other side. If you could take this job or leave it, that strengthens your resolve to negotiate for what you want. If you have other offers in hand, savings in the bank to weather a long job search, and/or a strong, supportive network ready to help with leads and introductions, that helps you stand firm instead of settling for less.

On the other side, if they really want you and don’t have other candidates in the wings, that helps you. If there is a capital campaign or other time-sensitive project coming up, that also helps because the other side is anxious to close a deal and get started.

How Strong Is Your Negotiating Technique?

Finally, get real about your own negotiating technique. If you are anxious in high-stakes conversations, work with a mentor or coach to role play and practice that skill. If you tend to avoid conflict, spend extra time anticipating and overcoming objections. If you tend to get overly aggressive, prepare how you’ll diffuse tension and deescalate when you negotiate.