Complete US I RECRUITMENT PROCESS Requirement Received Via email Over Phone If received over email : § Check if a proper Requisitio form(preferably use the ab § Allocate job order sequence § If the Requisition form is pr correct. If over the Phone § Create a Requisition form ( § Allocate job order sequence § If the Requisition form is pr correct. Allocation of Task Review work load of Allocate new job ord requisition form to t Update “Job Allocatio copy for personal re Search Phase Ask recruiter to iden search parameters. Reviewing Selected Pro Recruiters will uploa IT Recruitment Proce S : on form is received, if not create a Req bridged form). e #. repared send it for review to ensure al (preferably use the abridged form). e #. repared send it for review to ensure al f the recruiter. ders to recruiters. Also give a copy of j the recruiter. on Report” (which has recruiter’s nam ecords. ntify the keywords or if required, fine t ofiles ad profiles and requisition form in a com ess quisition ll details are ll details are job me) and file a tune the mmon folder.
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Complete US IT
RECRUITMENT PROCESS
Requirement Received
� Via email � Over Phone
If received over email :
§ Check if a proper Requisition form is received, if not create a Requisition
form(preferably use the abridged form).§ Allocate job order sequence #.
§ If the Requisition form is prepared send it for review to ensure all details arecorrect.
If over the Phone
§ Create a Requisition form (preferably use the abridged form).§ Allocate job order sequence #.
§ If the Requisition form is prepared send it for review to ensure all detailscorrect.
Allocation of Task
� Review work load of the recruiter.� Allocate new job orders to recruiters. Also give a copy of job
requisition form to the recruiter.� Update “Job Allocation Report” (which has recruiter’s name) and file a
copy for personal records.
Search Phase
� Ask recruiter to identify the keywords or if required, fine tune the
search parameters.
Reviewing Selected Profiles
� Recruiters will upload profiles and requisition form in a common folder.
Complete US IT Recruitment Process
RECRUITMENT PROCESS
:
if a proper Requisition form is received, if not create a Requisition
form(preferably use the abridged form). job order sequence #.
s prepared send it for review to ensure all details are
a Requisition form (preferably use the abridged form). job order sequence #.
the Requisition form is prepared send it for review to ensure all details
Review work load of the recruiter. Allocate new job orders to recruiters. Also give a copy of job
requisition form to the recruiter. Update “Job Allocation Report” (which has recruiter’s name) and file a
records.
Ask recruiter to identify the keywords or if required, fine tune the
Profiles
Recruiters will upload profiles and requisition form in a common folder.
Process
if a proper Requisition form is received, if not create a Requisition
s prepared send it for review to ensure all details are
the Requisition form is prepared send it for review to ensure all details are
Allocate new job orders to recruiters. Also give a copy of job
Update “Job Allocation Report” (which has recruiter’s name) and file a
Ask recruiter to identify the keywords or if required, fine tune the
Recruiters will upload profiles and requisition form in a common folder.
� Review selected profiles of each recruiter.
� Provide feedback (if any) to the recruiter.� Update the submission list (for that job order)
� Review the documents required for the submission.
Review checklist
§ Ensure skill sets match. § Rates are close to the rates specified by the client.
§ Candidate should be either located near the clients’ location or is willing to work at clients ’location.
§ Good communication skills.§ Get the Rate confirmation over email from the candidate / employer of
H1Bcandidates.
Client wise details of documents required for sub
Direct Client § Formatted CV in J-Squad letterhead.
Logic Solutions § Candidates profile form
§ Resume in MS Word format§ Personal feedback can be included in the covering letter.
Approval or Rejection of a profile
� Interview feedback of all plist.
� A month-wise and client
Tax Terms –
• Contract
2employee for the company.• Contract to hire
2employee for the company with the option to hire
Review selected profiles of each recruiter.
Provide feedback (if any) to the recruiter. Update the submission list (for that job order)
Review the documents required for the submission.
are close to the rates specified by the client.
uld be either located near the clients’ location or is willing to
communication skills. the Rate confirmation over email from the candidate / employer of
of documents required for submission
Squad letterhead.
in MS Word format feedback can be included in the covering letter.
Approval or Rejection of a profile
Interview feedback of all profiles should be updated in the submission
wise and client-wise interview list should be maintained
Contract- W2 – Will be working as a contract W
2employee for the company. Contract to hire -W2 – Will be working as a contract W
2employee for the company with the option to hire.
uld be either located near the clients’ location or is willing to
the Rate confirmation over email from the candidate / employer of
rofiles should be updated in the submission
wise interview list should be maintained
Will be working as a contract W-
Will be working as a contract W-
• Full-time–the company.
• Contract1099employee for the company.
• Contract to Hire contract 1099employee for the company with the option to hire.
• Contractor through another corporation.
• Contract to Hire contract with or through another corporation with the option to
hire. • TN– Visa for temporary workers authorized under schedule
2 of NAFTA.
Employment Types :
1. Contract - Corp-to-Corp
Definition: Corp-to-Corp the client,entity of US Citizen or Green Card Holder, which is organized as a
corporation, for the services rendered. In other words any employment where the contact is between two (2) companies is called Corp
Corp-to-Corp employment contract can happen in 2 cases.
Case – I: Any U.S. Citizen or any Green Card Holder can incorporate a
company. Usually, people register a company to avail the tax benefits or
save tax. This is a complicated setcompany (Company A) can be the sole worker of the company and can take
up employment with another company, a client (Company B). The client(Company B) will make the payment for the services rendered by the
– Will be working as a full-time W-2 employee for
Contract- Independent – Will be working as a contract 1099employee for the company.
Contract to Hire - Independent – Will be working as a contract 1099employee for the company with the option to hire.
Contract- Corp-to-Corp – Will be working on contract with or through another corporation.
Contract to Hire - Corp-to-Corp – Will be working on contract with or through another corporation with the option to
Visa for temporary workers authorized under schedule
Corp
Corp the client, a corporation, pays to the business entity of US Citizen or Green Card Holder, which is organized as a
corporation, for the services rendered. In other words any employment where the contact is between two (2) companies is called Corp-
Corp employment contract can happen in 2 cases.
Any U.S. Citizen or any Green Card Holder can incorporate a
company. Usually, people register a company to avail the tax benefits or
save tax. This is a complicated set-up process. The person incorporating the company (Company A) can be the sole worker of the company and can take
up employment with another company, a client (Company B). The client(Company B) will make the payment for the services rendered by the
2 employee for
Will be working as a contract
Will be working as a contract 1099employee for the company with the option to hire.
Will be working on contract with
Will be working on contract with or through another corporation with the option to
Visa for temporary workers authorized under schedule
a corporation, pays to the business entity of US Citizen or Green Card Holder, which is organized as a
corporation, for the services rendered. In other words any employment -to-Corp.
Any U.S. Citizen or any Green Card Holder can incorporate a
company. Usually, people register a company to avail the tax benefits or
orporating the company (Company A) can be the sole worker of the company and can take
up employment with another company, a client (Company B). The client(Company B) will make the payment for the services rendered by the
consultan tto the corporation that
then draw salary from his own company and pay tax. The client in this case is not liable to pay any tax on behalf of the consultant.
Case – II: This can also happen when a client company hires a consultant
with H1B VISA. H1 is works permit VISA for all professionals who are neither US citizen nor Green card holder. In this case the consultant has an
employer in the US,a registered corporation. This company allows the
consultant to work for another company, a clientbetween the employer company and the client. The consultant is a full time
employee of his own company but a consultant with the client company.
Payment Terms: In this scenario the client company pays to the consultant’s company directly and does not deduct any tax, as payment of
tax is the liability of the corporation rendering services.
2. Contract – Independent (1099)
Definition: This is actually sole proprietorship concern also called Independent. In other words a
business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence other than
the owner. Its liabilities are the owner’s personal liabilit
Payment Terms: In this scenario(1099) the client company pays directly to
the independent contractor and does not withhold any tax.
3. Contract – W2 Definition: This is the simplest option of all other options. There is no need
of book keeping as is the case other options like Corpthis case the wages of the contractor are subject to the same tax
withholdings as a regular employee of the client. In such cases the liability of depositing tax is with the employing company. The ap
of benefits and taxes is about 12.5 to 15% percent in some cases.
Conclusion
consultan tto the corporation that the consultant owns. The consultant can
then draw salary from his own company and pay tax. The client in this case is not liable to pay any tax on behalf of the consultant.
This can also happen when a client company hires a consultant
B VISA. H1 is works permit VISA for all professionals who are neither US citizen nor Green card holder. In this case the consultant has an
employer in the US,a registered corporation. This company allows the
consultant to work for another company, a client, but the contract is signed between the employer company and the client. The consultant is a full time
employee of his own company but a consultant with the client company.
In this scenario the client company pays to the any directly and does not deduct any tax, as payment of
tax is the liability of the corporation rendering services.
Independent (1099)
This is actually sole proprietorship concern also called Independent. In other words a sole proprietorship is an unincorporated
business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence other than
the owner. Its liabilities are the owner’s personal liabilities.
In this scenario(1099) the client company pays directly to
the independent contractor and does not withhold any tax.
This is the simplest option of all other options. There is no need
as is the case other options like Corp-to-Corp and 1099. wages of the contractor are subject to the same tax
employee of the client. In such cases the liability of the employing company. The approximate percentage
about 12.5 to 15% percent in some cases.
the consultant owns. The consultant can
then draw salary from his own company and pay tax. The client in this case
This can also happen when a client company hires a consultant
B VISA. H1 is works permit VISA for all professionals who are neither US citizen nor Green card holder. In this case the consultant has an
employer in the US,a registered corporation. This company allows the
, but the contract is signed between the employer company and the client. The consultant is a full time
employee of his own company but a consultant with the client company.
In this scenario the client company pays to the any directly and does not deduct any tax, as payment of
This is actually sole proprietorship concern also called sole proprietorship is an unincorporated
business that is owned by one individual. It is the simplest form of business organization to start and maintain. The business has no existence other than
In this scenario(1099) the client company pays directly to
This is the simplest option of all other options. There is no need
Corp and 1099. In wages of the contractor are subject to the same tax
employee of the client. In such cases the liability of proximate percentage
about 12.5 to 15% percent in some cases.
A 1099 employee is in most cases a temporary employee (technically, not
even an "employee"). Because they are not permanent, they do not need to complete a W-4 or have the employer withhold taxes. They are responsible
for paying their taxes directly to the IRS. The IRS requires that the employer report the earnings paid on a form 1099. The IRS would rather put the
burden of tax withholding on the employer and trules regarding when someone can be considered a 1099 employee.
Corp-to-Corp– Indicates that the employer would prefer to deal directly with another corporation. The main reason for this preference is to avoid some of
the potential liability that might exist in dealing with an independent contractor on a 1099 basis. This would include corporations dealing directly
with other corporations or corporations dealing with individuals who have incorporated.
A W-2 employee is an employeand the earnings are reported to the IRS at theemployee completes a form W
instruct the employer on how to withhold taxes. This
issues that may arise with the IRS regarding employment
Important: Keeping in mind the above details we must now understandthe contract fees payable under different work authorizations. Lets assume
that the client agrees to pay the contractor explains the final payment and deductions, if any, as applicable and also
shows the net amount that is finally paid to the contractor under each employment authorization type.
Corp-to-Corp
Client
Deductions
Contractor
$
60
Nil $ 60
Employment Definitions :
A 1099 employee is in most cases a temporary employee (technically, not
even an "employee"). Because they are not permanent, they do not need to 4 or have the employer withhold taxes. They are responsible
for paying their taxes directly to the IRS. The IRS requires that the employer report the earnings paid on a form 1099. The IRS would rather put the
burden of tax withholding on the employer and therefore has fairly stringent rules regarding when someone can be considered a 1099 employee.
Indicates that the employer would prefer to deal directly with corporation. The main reason for this preference is to avoid some of
ntial liability that might exist in dealing with an independent on a 1099 basis. This would include corporations dealing directly
corporations or corporations dealing with individuals who have
2 employee is an employee whose taxes are withheld by the employer and the earnings are reported to the IRS at the year-end via a Wemployee completes a form W-4 at the beginning of their employment to
instruct the employer on how to withhold taxes. This eliminates any pos
issues that may arise with the IRS regarding employment status.
Keeping in mind the above details we must now understandthe contract fees payable under different work authorizations. Lets assume
the client agrees to pay the contractor $ 60per hour. The chart belowexplains the final payment and deductions, if any, as applicable and also
the net amount that is finally paid to the contractor under each authorization type.
Independent (1099) W2
Client
Deductions
Contractor
Client
Deductions
$
60
Nil $ 60 $
60
12.5 to
15% of $ 60
Employment Definitions :
A 1099 employee is in most cases a temporary employee (technically, not
even an "employee"). Because they are not permanent, they do not need to 4 or have the employer withhold taxes. They are responsible
for paying their taxes directly to the IRS. The IRS requires that the employer report the earnings paid on a form 1099. The IRS would rather put the
herefore has fairly stringent rules regarding when someone can be considered a 1099 employee.
Indicates that the employer would prefer to deal directly with corporation. The main reason for this preference is to avoid some of
ntial liability that might exist in dealing with an independent on a 1099 basis. This would include corporations dealing directly
corporations or corporations dealing with individuals who have
are withheld by the employer end via a W-2. The W-2 their employment to
eliminates any possible
status.
Keeping in mind the above details we must now understand the contract fees payable under different work authorizations. Lets assume
$ 60per hour. The chart below explains the final payment and deductions, if any, as applicable and also
the net amount that is finally paid to the contractor under each
Deducti
Contactors
12.5 to
15% of $ 60
$ 60 –
deduction
1099 Employee – A 1099 employee is in most cases a temporary
employee (technically, not even anpermanent, they do not need to complete a W
withhold taxes. They are responsible for paying their taxes directly to the IRS. The IRS requires that the employer report the earnings paid on a form
1099. The IRS would rather put the burden ofemployer and therefore has fairly stringent rules regarding when someone
can be considered a 1099 employee.
. Corp-to-Corp – Indicates that the employer would prefer to
with another corporation. The main reason for this preference issome of the potential liability that might exist in dealing with an independent
contractor on a 1099 basis. This wowith other corporations or corporations dealing with individuals who have
incorporated.
EB-1 – Employment-based immigration category for aliens ofability.
EB-2 – Employment-based immigration catego
degrees or exceptional ability.
EB-3 – Employment-based immigration category for aliens
degrees. Most immigrants become residents through this
H-1B – Visa for temporary skilled workers (sponsored).
H-4 – Visa for family members of H
Independent – The employer is willing to hire a temporaryeither a 1099 or W-2 Basis.
The IRS classifications of workers are independent according to the "common law" s
that if an employer controls and directs, or has the right tohow, when, and where to work, then the worker is an
free from such direction and control can be
J-1 – Visa for doctors and researcher usually tied to some
grant or exchange program.
A 1099 employee is in most cases a temporary
employee (technically, not even an "employee"). Because they are not permanent, they do not need to complete a W-4 or have the employer
withhold taxes. They are responsible for paying their taxes directly to the IRS. The IRS requires that the employer report the earnings paid on a form
1099. The IRS would rather put the burden of tax withholding on the employer and therefore has fairly stringent rules regarding when someone
can be considered a 1099 employee.
Indicates that the employer would prefer to deal directly
with another corporation. The main reason for this preference issome of the potential liability that might exist in dealing with an independent
contractor on a 1099 basis. This would include corporations dealing directlywith other corporations or corporations dealing with individuals who have
based immigration category for aliens of extra
based immigration category for aliens with advanced
degrees or exceptional ability.
based immigration category for aliens with bachelor's
degrees. Most immigrants become residents through this category.
Visa for temporary skilled workers (sponsored).
Visa for family members of H-1B Visa holder.
The employer is willing to hire a temporary employee on 2 Basis.
The IRS classifications of workers are independent contractors oraccording to the "common law" standard. The common law standard holds
that if an employer controls and directs, or has the right to tell a worker how, when, and where to work, then the worker is an "employee". A worker
free from such direction and control can be classified as an "independen
Visa for doctors and researcher usually tied to some sort of research
grant or exchange program.
A 1099 employee is in most cases a temporary
"employee"). Because they are not 4 or have the employer
withhold taxes. They are responsible for paying their taxes directly to the IRS. The IRS requires that the employer report the earnings paid on a form
tax withholding on the employer and therefore has fairly stringent rules regarding when someone
deal directly
with another corporation. The main reason for this preference is to avoid some of the potential liability that might exist in dealing with an independent
uld include corporations dealing directly with other corporations or corporations dealing with individuals who have
extra ordinary
with advanced
with bachelor's
category.
employee on
or employees standard holds
tell a worker "employee". A worker
classified as an "independent".
sort of research
J-2 – Visa for the spouse of an J
Job seeker – Candidate looking to better their employmentThere are three types of Job Seekers:
• Announced are Job Seekers that are readyappear on the Hot-list.
• Passive Public are those Job Seekers that
for a job but would entertain the right opportunity.seeker names display on the Hot
list.
• Passive Confidentialto know who they are. Job Seekers can chothey will show up in the passive list as a confidential
Negotiation Skills :
Introduction
Negotiation is something that we do all the time and is not only used for business purposes. For example, we use it in our soci
deciding a time to meet, or where to go on a rainy day.
Negotiation is usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible.
Communication is always the link that will be used to
issue/argument whether it is face
Remember, negotiation is not always between two people: it can involve several members from two parties.
There are many reasons why you may want to negotiate and ther
several ways to approach it. The following is a few things that you may want to consider.
Visa for the spouse of an J-1 Visa holder.
looking to better their employment opportunities. There are three types of Job Seekers:
are Job Seekers that are ready to work in 30 days and list.
are those Job Seekers that are not actively lookin
for a job but would entertain the right opportunity. Passive Public Job seeker names display on the Hot-list, but they will be on the
Passive Confidential are those Job Seekers that do not want anyone to know who they are. Job Seekers can chose to be confidential and they will show up in the passive list as a confidential candidate
Negotiation is something that we do all the time and is not only used for business purposes. For example, we use it in our social lives perhaps for
deciding a time to meet, or where to go on a rainy day.
Negotiation is usually considered as a compromise to settle an argument or issue to benefit ourselves as much as possible.
Communication is always the link that will be used to negotiate the
issue/argument whether it is face-to-face, on the telephone or in writing.
Remember, negotiation is not always between two people: it can involve several members from two parties.
There are many reasons why you may want to negotiate and ther
several ways to approach it. The following is a few things that you may want
opportunities.
to work in 30 days and
are not actively looking
Passive Public Job list, but they will be on the passive
that do not want anyone
confidential and candidate.
Negotiation is something that we do all the time and is not only used for al lives perhaps for
Negotiation is usually considered as a compromise to settle an argument or
negotiate the
face, on the telephone or in writing.
Remember, negotiation is not always between two people: it can involve
There are many reasons why you may want to negotiate and there are
several ways to approach it. The following is a few things that you may want
Why Negotiate?
If your reason for negotiation is seen as 'beating' the opposition, it is known
as 'Distributive negotiation'. This way, you must be prepared to
persuasive tactics and you may not end up with maximum benefit. This is because your agreement is not being directed to a certain compromise and
both parties are looking for a different outcome.
Should you feel your negotiation is much more 'friendlyaiming to reach agreement, it is known as 'Integrative negotiation'. This way
usually brings an outcome where you will both benefit highly.
Negotiation, in a business context, can be used for selling, purchasing, staff (e.g. contracts), borrowing (e.g. loans) and transactions, along with
anything else that you feel are applicable for your business.
Planning and How to Negotiate
Pre-Negotiation
Before you decide to negotiate, it is a good idea to prepare. What is it
exactly that you want to negotiate? Set out your objectives (e.g. I want more time to pay off the loan). You have to take into account how it will
benefit the other party by offering some sort of reward or incentive (explained later).
What is involved (money, sales, time, conditions, discounts, terms, etc)?
Know your extremes: how much extra can you afford to give to settle an agreement? Although you are not aiming to give out the maximum, it is
worth knowing so that you will not go out of your limits.
Know what your opposition is trying to achieve by their negotiation. This is
useful information that could be used to your benefit and may well be used to reach a final agreement.
Consider what is valuable to your business, not the costs. You may end up
If your reason for negotiation is seen as 'beating' the opposition, it is known
as 'Distributive negotiation'. This way, you must be prepared to
persuasive tactics and you may not end up with maximum benefit. This is because your agreement is not being directed to a certain compromise and
both parties are looking for a different outcome.
Should you feel your negotiation is much more 'friendly' with both parties aiming to reach agreement, it is known as 'Integrative negotiation'. This way
usually brings an outcome where you will both benefit highly.
Negotiation, in a business context, can be used for selling, purchasing, staff , borrowing (e.g. loans) and transactions, along with
anything else that you feel are applicable for your business.
Planning and How to Negotiate:
Before you decide to negotiate, it is a good idea to prepare. What is it
exactly that you want to negotiate? Set out your objectives (e.g. I want more time to pay off the loan). You have to take into account how it will
benefit the other party by offering some sort of reward or incentive
ney, sales, time, conditions, discounts, terms, etc)?
Know your extremes: how much extra can you afford to give to settle an agreement? Although you are not aiming to give out the maximum, it is
worth knowing so that you will not go out of your limits.
ow what your opposition is trying to achieve by their negotiation. This is
useful information that could be used to your benefit and may well be used to reach a final agreement.
Consider what is valuable to your business, not the costs. You may end up
If your reason for negotiation is seen as 'beating' the opposition, it is known
use
persuasive tactics and you may not end up with maximum benefit. This is because your agreement is not being directed to a certain compromise and
' with both parties aiming to reach agreement, it is known as 'Integrative negotiation'. This way
Negotiation, in a business context, can be used for selling, purchasing, staff , borrowing (e.g. loans) and transactions, along with
Before you decide to negotiate, it is a good idea to prepare. What is it
exactly that you want to negotiate? Set out your objectives (e.g. I want more time to pay off the loan). You have to take into account how it will
benefit the other party by offering some sort of reward or incentive
ney, sales, time, conditions, discounts, terms, etc)?
Know your extremes: how much extra can you afford to give to settle an agreement? Although you are not aiming to give out the maximum, it is
ow what your opposition is trying to achieve by their negotiation. This is
useful information that could be used to your benefit and may well be used
Consider what is valuable to your business, not the costs. You may end up
losing something in the negotiation that is more valuable to your business
than money. It could be a reliable client or your company reputation.
Negotiating:
It is important that you approach the other party directly to make an
appointment to negotiate shouldthrough a phone operator, receptionist, assistant etc) as this will allow you
to set the agenda in advance, and improve the prospects of the other party preparing sufficiently enough to make a decision on the day.
open about your reason for contact or they may lose interest instantly and not follow up on the appointment. Save all your comments for the actual
appointment- don't give away anything that will give them a chance to prepare too thoroughly: it's not war, but it is business!
So, it's time to negotiate and you've prepared well. What else must you have? Two things: confidence and power. Your power will come from your
ability to influence. For example, you may be the buyer (but not always a strong position), or have something that the other party wants, or you may
be able to give an intention to penalize if the other party fails to meet the agreement (as is the way with construction). As briefly mentioned above,
you may be able to give a rewarselling kitchen knives and as part of the package you are giving a knife
sharpener and a storage unit away free as an incentive.
It is always important that you keep the negotiation in your control: this can mean within your price range, your delivery time or your profit margin. If
you fail to do so, you will end up on the wrong side of the agreement, and with nothing more out of the deal other than maintaining trading
relationships.
When negotiating, aim as high
best deal for yourself. The other party may bring this down but it is a good tactic, as it is always easier to play down than to gain.
Make sure that you remain flexible throughout the negotiation in case the
opposition decides to change the direction of the agreement (they may want different incentives or even change their objectives). This is where your
preparation comes to good use: knowing your limits and the other party's
ing something in the negotiation that is more valuable to your business
than money. It could be a reliable client or your company reputation.
It is important that you approach the other party directly to make an
appointment to negotiate should it be in person, writing or by phone (not through a phone operator, receptionist, assistant etc) as this will allow you
to set the agenda in advance, and improve the prospects of the other party preparing sufficiently enough to make a decision on the day. Try to be fairly
open about your reason for contact or they may lose interest instantly and not follow up on the appointment. Save all your comments for the actual
don't give away anything that will give them a chance to y: it's not war, but it is business!
So, it's time to negotiate and you've prepared well. What else must you have? Two things: confidence and power. Your power will come from your
ability to influence. For example, you may be the buyer (but not always a trong position), or have something that the other party wants, or you may
be able to give an intention to penalize if the other party fails to meet the agreement (as is the way with construction). As briefly mentioned above,
you may be able to give a reward or an incentive. For example, you may be selling kitchen knives and as part of the package you are giving a knife
sharpener and a storage unit away free as an incentive.
It is always important that you keep the negotiation in your control: this can within your price range, your delivery time or your profit margin. If
you fail to do so, you will end up on the wrong side of the agreement, and with nothing more out of the deal other than maintaining trading
When negotiating, aim as high as you feel necessary in order to gain the
best deal for yourself. The other party may bring this down but it is a good tactic, as it is always easier to play down than to gain.
Make sure that you remain flexible throughout the negotiation in case the
position decides to change the direction of the agreement (they may want different incentives or even change their objectives). This is where your
preparation comes to good use: knowing your limits and the other party's
ing something in the negotiation that is more valuable to your business
than money. It could be a reliable client or your company reputation.
It is important that you approach the other party directly to make an
it be in person, writing or by phone (not through a phone operator, receptionist, assistant etc) as this will allow you
to set the agenda in advance, and improve the prospects of the other party Try to be fairly
open about your reason for contact or they may lose interest instantly and not follow up on the appointment. Save all your comments for the actual
don't give away anything that will give them a chance to
So, it's time to negotiate and you've prepared well. What else must you have? Two things: confidence and power. Your power will come from your
ability to influence. For example, you may be the buyer (but not always a trong position), or have something that the other party wants, or you may
be able to give an intention to penalize if the other party fails to meet the agreement (as is the way with construction). As briefly mentioned above,
d or an incentive. For example, you may be selling kitchen knives and as part of the package you are giving a knife
It is always important that you keep the negotiation in your control: this can within your price range, your delivery time or your profit margin. If
you fail to do so, you will end up on the wrong side of the agreement, and with nothing more out of the deal other than maintaining trading
as you feel necessary in order to gain the
best deal for yourself. The other party may bring this down but it is a good
Make sure that you remain flexible throughout the negotiation in case the
position decides to change the direction of the agreement (they may want different incentives or even change their objectives). This is where your
preparation comes to good use: knowing your limits and the other party's
needs. If you're a quick thinker the
turn it around quickly if things start to go against you without putting your objectives at risk.
Confidence comes from knowing your business, your product, what its
worth, and being able to communicate this well people are almost impossible to get the better of, as some of you will know
only too well.
Agreement in Negotiation
Once you have come to a final agreement, it is important that you have it
down in writing along with both paor practical. Before it is signed, or formally ordered, it is wise not to say
anything about the terms agreed because your next sentence could break the agreement: the best sales
have to!
If it is a sale/purchase that you are making, then officially, it isn't a sale until you/they have actually ordered the product/service. Usually, this will be an
Order Form (we have one in our free business software). In most other
negotiations, one party sending a letter and fax to the other in which the agreement is outlined (to a sufficient degree) will form a legal basis.
If the other party then amends the conditions in the agreement in writing to
you, those amended terms then disagree in writing, and so on…
Summary
We use negotiation in everything we do but you have to be sure that it is done in the best way possible to achieve maximum benefit. The most
important part is planning: prenegotiating.
needs. If you're a quick thinker then you've got an advantage. You'll need to
turn it around quickly if things start to go against you without putting your
Confidence comes from knowing your business, your product, what its
worth, and being able to communicate this well to the other party: these people are almost impossible to get the better of, as some of you will know
Agreement in Negotiation:
Once you have come to a final agreement, it is important that you have it
down in writing along with both parties' signature: this is not always possible or practical. Before it is signed, or formally ordered, it is wise not to say
anything about the terms agreed because your next sentence could break the agreement: the best sales-people never over sell - well, not until they
If it is a sale/purchase that you are making, then officially, it isn't a sale until you/they have actually ordered the product/service. Usually, this will be an
Order Form (we have one in our free business software). In most other
negotiations, one party sending a letter and fax to the other in which the agreement is outlined (to a sufficient degree) will form a legal basis.
If the other party then amends the conditions in the agreement in writing to
you, those amended terms then become part of the agreement, UNLESS you disagree in writing, and so on…
We use negotiation in everything we do but you have to be sure that it is done in the best way possible to achieve maximum benefit. The most
important part is planning: preparing well will give you an advantage when
n you've got an advantage. You'll need to
turn it around quickly if things start to go against you without putting your
Confidence comes from knowing your business, your product, what its
to the other party: these people are almost impossible to get the better of, as some of you will know
Once you have come to a final agreement, it is important that you have it
rties' signature: this is not always possible or practical. Before it is signed, or formally ordered, it is wise not to say
anything about the terms agreed because your next sentence could break not until they
If it is a sale/purchase that you are making, then officially, it isn't a sale until you/they have actually ordered the product/service. Usually, this will be an
Order Form (we have one in our free business software). In most other
negotiations, one party sending a letter and fax to the other in which the agreement is outlined (to a sufficient degree) will form a legal basis.
If the other party then amends the conditions in the agreement in writing to
become part of the agreement, UNLESS you
We use negotiation in everything we do but you have to be sure that it is done in the best way possible to achieve maximum benefit. The most
paring well will give you an advantage when
Only use the knowledge and experience you need to achieve your objective:
having the business owner negotiating the supply of pencils is overleaves you little room to power
you want them to supply you with, say, colour photo
Have confidence and be sure that you can keep control at all times. Aim highly, but don't underestimate the opposition. They too may have just read
the same advice. If you're selling something, be persuasive and offer some
incentive to keep the customer interested.
Don't close an agreement until you are happy. This could be difficult if you have been put in a 'corner' but this would perhaps be an effect of poor