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The Art of Renegotiation

Jeff Cochran

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Despite our best efforts, sometimes we negotiate a bad deal. But is that the end of it? After you acknowledge your mistakes – and face the sinking feeling in your stomach – you can begin to seek opportunities for renegotiation. Here’s how to find more favorable terms.

Before A Deal Breaks Down

While no one wants to be involved in a deal gone bad, you can protect yourself before negotiations even begin by doing the following:

  • Building strong relationships. If the other party trusts you to consistently deliver what you promise, they are will be more likely to be flexible if you need to make changes.
  • Doing your research. Take the time to explore all related information to make it less likely your deal will be affected by unforeseen circumstances.
  • Writing nrenegotiation into contracts. Cover foreseeable circumstances in your contract and provide for a renegotiation process for specific events.
Understand What Triggers Renegotiation

Both buyers and sellers can reasonably expect to revisit terms when a contract is imperfect or the circumstances surrounding the deal change. Most buyers realize that even if you’ve signed a contract, no one can predict everything that can impact the transaction. For instance, if materials prices suddenly skyrocket, new technology makes your current offering obsolete, or a spike in energy costs dramatically increases production requirements, sometimes both parties must either walk away from the deal or come to new terms.

Ask if You Can Afford to Lose

Successful renegotiation often results only when negotiators speak from a position of strength. If you can’t afford to lose the deal if you’re unsuccessful in renegotiating it, your fear could very well undermine your confidence and even damage your credibility.

If you realize it would be better to lose the deal than honor the current terms, openly address the situation with the buyer and let them know you’re not happy with the terms to which you agreed. Ask if they’re willing to look at the numbers again and find a mutually beneficial solution.

Choose Positivity

When a deal goes bad, both sides feel stress, which can create hostility. If you become angry or defensive, your emotions will work against you. To guard against that possibility, look for ways to create value for the other side and create a problem-solving atmosphere. Invite everyone who participated in the original agreement to help find a solution. If meetings continue to be stressful and unproductive consider hiring a mediator to manage the process.

Facing Employee Retention Challenges in 2018

Jeff Cochran

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Employee retentionThe U.S. unemployment rate is low, and companies are cranking up recruiting efforts. Organizations will face a challenge in the year ahead to keep current employees from being lured away by companies offering attractive benefits and innovative perks. Businesses can attract and keep employees by improving digital efficiency, providing relevant feedback and matching people with their passions for improved job satisfaction.

Intentionally Endorse Culture

When employees believe in what their organization stands for, they are more loyal and engaged. Make creating a positive culture top priority when it comes to employee retention. Define the values most important to your brand and seek ways to communicate and practice those ideals throughout your organization.

Analyze and tweak every step of onboarding to highlight those values in company policies and practices. Make sure training gives specific steps for how to incorporate them in workplace interactions, not just with outside clients.

Develop Leadership

Supervisors often obtain their position because they were effective as lower-level employees. While they might have been the strongest member of their team, they don’t necessarily have the skills to be effective management.

One of the biggest reasons employees leave their job is because of conflict with a supervisor. Offer leadership training to provide the communication skills necessary to effective relationships with employees.

Prioritize Growth

Some employees change jobs because they see another company as an opportunity to get ahead. If your staff feels stuck in their current positions, they are likely to experience frustration and defeat. Instead of losing your talent to the competition, keep them when you do the following:

  • Offer performance-based bonuses or other perks to top performers.
  • Provide training and staff development that gives employees skills they need to be promoted.
  • Let staff members know the career opportunities available and the ways your company can help them reach their goals.
  • Allow employees to cross-train so they learn a wide range of skills.
Make Your Offer Better

Money isn’t everything, but employees are lured away when they can make more with your competitor. Make your compensation package as attractive as possible. Salaries and bonuses are a major part of what attracts talent, but other factors can be just as important. Health insurance, flexible scheduling, vacation time and retirement packages also play into an employee’s decision to stay with your organization or go somewhere else.

Know what the competition offers so your staff isn’t lured away by a few dollars. When Glassdoor analyzed job transitions, they found base pay that is 10 percent higher makes it 1.5 percent less likely employees will leave.

Invest in retaining your current workforce by creating a positive place in which they thrive. The productive work environment that results will improve your bottom line and attract top talent to add to your team.