How to Write a Negotiation Letter?
Negotiating can be challenging, especially if you find face-to-face transactions intimidating. One of the most common ways of negotiating is to write a negotiation letter that expresses your continued interest in a position or offer, but with a change in the terms. Whether you are an employee looking to improve your salary and compensation package or a businessman looking to earn more equity in the company, here are some tips for writing a negotiation letter:
1. Do Your Research
Do your research before you begin writing the letter. For instance, if you are negotiating your employment terms, determine what the average salary is for your position, and factor in your level of experience and other accomplishments. For business terms, consider the expertise that you are bringing to the company, and research similar deals in your field to compare the terms and negotiations of the venture.
2. Be Professional
Write a negotiation letter like you would a business letter. Avoid informal content and focus on the details that you want to convey to the other party. Emphasize the skills that you want to highlight to make you valuable in the eyes of the recipient. Remind the recipient of the negotiations and express interest in the offer. Get to the point of the negotiation in one or two sentences.
3. Detail the Terms
Indicate your negotiation offer and terms, including salary and compensation for employment, or, in case of a business transaction, your equity in the business venture. This is because the negotiation letter is used to begin negotiations, avoid putting in your best and final offers. Instead, give the recipient an opportunity to match or counter your terms.
4. Give Ample Time
Give the other party enough time to respond to your terms and include a timeline for their response. Do not forget to include your contact information so that they can reach you for negotiation or closing purposes. Before you send the letter, make sure that you proofread the document as well.
Do employers expect new hires to negotiate their job offer?
A study found that the majority of employers expect their job applicants to negotiate salary beginning at the interview stage of the hiring process. Many applicants are hesitant to do this as they don’t want to risk losing the job. However, there should be no reason to lose a job offer if you handle the situation properly.
How much should you negotiate a salary?
Generally, it is usually appropriate to ask for ten to twenty percent more than what you’re currently making in the company without seeming greedy about your salary negotiation.
How do you write a letter of negotiation?
Much like any other business transaction, make sure that you write a letter of negotiation in a formal manner. Be direct about your purpose without being too aggressive in your negotiation letter.
How long does it take to negotiate a contract?
Contract negotiations can go from ten to four months. If the contract is not resolved by then, you go into binding arbitration, which will help you reach a final agreement.
What are the three phases of negotiation?
The three phases of negotiation are preparation, development, and closure.