Sunday, June 17, 2007
Contract Negotiations
Contract negotiation is an art. The very fundamental of contract negotiation for overseas secondment is that you must realize that the company will give you the bare minimum. If the company is able to give you only sticks and stones, be expected to get that. Of course in all humanitarian reasons, companies will give you what we known today as a “sizable” package for you to survive. Of course, there is a really thin grey line between humanitarian and absolute disregard of welfare. Management has no qualms about purposefully misinterpreting the very meaning of humanitarian. It’s the bottom line after all that’s most important. It’s really to you to justify that you need additional money and so-called “benefits” to survive.
You also need to know absolutely what you want; that is primarily cold hard cash. There’s no shame in asking for more than you require. For all you know, the company is earning enough from you just by deployment you elsewhere. You either be the monkey who works for peanutsor be Bill Gates. I chose the latter obviously… here’s what a basic contract should consist of:
1) How much more are you going to get on top of your current pay? Take consideration of the living standards of the country you are going to.
2) Allowance for extreme weather conditions
3) Taxes. This is one of the most important. Who pays the taxes? How many percent is going to be taxed?
4) Other financial instruments required by regulations. Like Superannuation, CPF etc. Who pays? If it’s reimbursable, is the reimbursed sum taxable?
5) What currency to be paid in? This one cuts both ways depending on currency exchange rates. However if you are going to third world or developing countries, choose the currency more stable if you have a choice.
6) Who pay for the housing, utilities bills, telephone, transport etc?
7) Any allowance given? Is it fair considering the hardship you are about to go through? Remember wherever you are going, you are going to suffer a certain degree of hardship.
8) Any pay adjustments during your tenure?
Basically one also has to realize that there can never be a win-win situation in contract negotiation. There is a certain amount of give and take needed. If most of what you expect (that is something to meet your needs as if you are living at home + allowance) then you are fine. Never accept a contract that you think you will regret. If so, you will suffer during your entire tenure. I had taken one that I hope I will not regret. Guess I will find that out in due time.
Long - 1st March 2007
You also need to know absolutely what you want; that is primarily cold hard cash. There’s no shame in asking for more than you require. For all you know, the company is earning enough from you just by deployment you elsewhere. You either be the monkey who works for peanutsor be Bill Gates. I chose the latter obviously… here’s what a basic contract should consist of:
1) How much more are you going to get on top of your current pay? Take consideration of the living standards of the country you are going to.
2) Allowance for extreme weather conditions
3) Taxes. This is one of the most important. Who pays the taxes? How many percent is going to be taxed?
4) Other financial instruments required by regulations. Like Superannuation, CPF etc. Who pays? If it’s reimbursable, is the reimbursed sum taxable?
5) What currency to be paid in? This one cuts both ways depending on currency exchange rates. However if you are going to third world or developing countries, choose the currency more stable if you have a choice.
6) Who pay for the housing, utilities bills, telephone, transport etc?
7) Any allowance given? Is it fair considering the hardship you are about to go through? Remember wherever you are going, you are going to suffer a certain degree of hardship.
8) Any pay adjustments during your tenure?
Basically one also has to realize that there can never be a win-win situation in contract negotiation. There is a certain amount of give and take needed. If most of what you expect (that is something to meet your needs as if you are living at home + allowance) then you are fine. Never accept a contract that you think you will regret. If so, you will suffer during your entire tenure. I had taken one that I hope I will not regret. Guess I will find that out in due time.
Long - 1st March 2007
# posted by Long @ 10:21 PM 
