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Negotiating

Negotiating is an art.  General guidelines apply in many cases, but your approach should be adapted to the realities of each individual situation you face. 


Some of your negotiating will happen easily as part of your everyday conversations with potential employers.  You will agree on many things without special effort.  However, some concerns will require more attention and effort to work out.  If you fail to deal with these concerns early on, they may become trouble spots later in the relationship.  Watch for these potential trouble spots as you talk with employers, and be ready to "think on your feet" so you can discuss them creatively and diplomatically.



 
 
 
 The Importance of Knowing Your Professional Peers

One of the best ways to find out about what to expect from employers is to spend time with people who do the same kind of work you do. Look for opportunities to "hang out" with your peers and "talk shop."  Association meetings, competitions, and other public events are good places to do this.  Invite one of your peers to lunch, or look for a quiet moment to chat.  To draw them out, ask them questions about themselves and what they are doing.  Given half a chance, they are likely to tell you their problems or crow about their successes.  If they are smart, they will take the opportunity to ask you questions about what you are doing.

In exchanges with your peers, you will probably learn valuable tricks of the trade, what or who to watch out for, and much more.  Remember that people sometimes exaggerate, so you may need to take the information "with a grain of salt."  For instance, if one of your peers says, "Don't ever work for Mr. X; he's a slave driver," he could be giving you good information or just complaining about one bad experience.  Reports like this should put you on alert that problems may exist with an employer.  However, be sure to make your own judgment about the situation. The information you get from your peers can be helpful when you negotiate with employers, provided that you put it in perspective.
 
 
 
 The Basics

The basic goal in negotiating is to achieve a "win win" situation.  If your job ends up being good only for you or only for your employer, it probably won't last.  As you consider your needs, think of the potential impact they might have on your employer.  Be sure both of you are getting a good deal.

Good negotiating requires a package of elements that make sense together.  These elements (discussed below) include duties, responsibilities, compensation, job security, other obligations, and timing.  Be sensitive to how these elements fit together.  If one or two elements don't fit the total picture, the job is unlikely to last.  For example, if the compensation does not fit the level of responsibility or if the duties exceed your ability (which reduces job security), the job may not be right for you regardless of how good other aspects of it may seem.

As you work out potential trouble spots with your employer, be careful to avoid ultimatums.  Statements like "I absolutely must have..." or "I can't do this unless you..." will not be helpful or diplomatic.  If you give a potential employer ultimatums, you could miss out on a good job.  Instead, make statements that leave the door open for discussion and give the employer more options.  For instance, you might say something like this:  "From my perspective, it looks like I would need ______ (fill in the blank with housing, a certain salary, or whatever you are negotiating), but I am open to other options that might suit both of us better."
 

Remember -- Any time you ask an employer for something, they may say "no."   Be prepared for this eventuality before you ask.  Have an alternate plan in mind.  If you want to continue the negotiations, be creative.  For instance, if an employer says they don't have time to send you a farm brochure, ask them if they have a web site or an advertisement in a recent magazine.  Or, if an employer says they can't afford to pay the salary you need, consider asking about other kinds of compensation like commissions, more time off, etc. 

Remember -- Everyone who accepts a job takes some risk.  It might be the right job or it might not.  At any point during your negotiations, an employer may ask you to decide about taking a job before you are ready.  You may have more questions or need more information.  Making a decision before you are ready increases your risk.  When this happens, you may have only two choices:  accept the increased risk and take the job immediately or simply turn down the job and walk away.  Be ready to make this kind of "on the spot" decision should it become necessary.

Pitfall -- Don't get too rigid in your thinking about a job.  Problems can often be solved in unexpected ways.  Be open to suggestions.  Be creative in your thinking. 

Pitfall -- Resist the temptation to accept a job before both you and your potential employer have worked out all the details.  Don't jump at the first job that comes along.  Take a deep breath, and make sure your emotions are not tempting you to take shortcuts in the negotiating process.  Employers are subject to this temptation, too.  If they are short of help, they may want to hire you before they have taken sufficient time to get to know you. 


 
 Duties and Responsibilities

Some employers are more organized than others.  The organized ones will have a detailed written job description covering duties and responsibilities.  Others will be clear in their own minds about the job, but they will not have the details written down.  Many will not have thought about the details of their position at all.

To be a success at the job you are considering, you must understand its duties and responsibilities.  The best way to understand the requirements of a job is to have them written down.  It does not matter who writes them down, as long as you and your potential employer both understand the details of the job.  If your potential employer does not have a written job description, we recommend that you write one yourself based on conversations with the employer.  No need to write a formal document, but be sure you have stated things clearly and included sufficient detail.  When you have written down the details as you understand them, ask your the employer to review them and tell you if they are correct.  To give your potential employer a reason for reviewing what you have written, you can say something like, "I want to be sure I understand your needs correctly."   Make note of any comments the employer makes.
 

Sample Job Description
Use this sample only as a guide to the basic elements needed. 
Your actual description may be quite different from this sample. 

Position: Trainer -- Winner's Circle Farm

Duties and Responsibilities

Manage the feeding and daily care of horses in training.  Halter break and ground train foals.  Start horses under saddle.  Train horses for competition in Hunter/Jumper classes.  In cooperation with owner, plan a show schedule for each horse.  Prepare horses, personnel, and equipment for travel to competitions.  Take horses and staff to shows.  Show horses in competition.  In cooperation with owner, design and place advertising to attract clients for sale horses.  Give farm tours, and talk with clients.  Be responsible for all stages of horse sales from initial contact through shipping of horses sold.  Supervise barn help.  Teach Hunt Seat riding to beginner through advanced riders in group and private lessons.  Assist owner with general management and decision making.

Work Schedule

Starting Date: May 1, 2005
Regular Schedule: 6:00 A.M. - 4:00 P.M. Saturday through Wednesday; on Thursdays until noon 
Special Considerations:  The regular schedule may be adjusted to accommodate emergencies and special circumstances. 

Holidays, Vacation, Personal/Sick Days

When business allows, days off are provided on national holidays.  Should a holiday be skipped for business reasons, an additional personal day will be provided for each holiday day skipped.  Two weeks paid vacation will be provided for every year of completed employment.  10 days of paid sick leave/personal time will be provided.  Scheduling of vacation and sick leave/personal time is subject to owner's approval. 

Relocation and Child Care Expenses

Not Provided

Compensation

Cash salary $30,000 per year, paid in monthly increments on or before the 10th of the month.  Partial months will be prorated.  Worker's compensation insurance provided.  Employer provides housing with utilities paid.  Single person health insurance provided at employer's expense.  Retirement plan option available.  All job-related expenses to be paid by employer.


 
Pitfall -- Be careful not to make assumptions about the details of your job.  Always make sure you have understood them correctly.  Once you have started work, it may be harder to resolve differences in understanding between you and your employer. 

Pitfall -- Don't insist on a legal employment contract.  Except in special circumstances, we do not recommend employment contracts.  Contracts are binding on all parties and may lock you in when you need to get out of a situation.  If the terms of an employment contract are violated, your only recourse may be a lawsuit.  The time and expense of a lawsuit may not be to your advantage when you need to move on with your life.  The basic reason for any contract is to spell out the agreement between parties.  In most cases, a less formal process that leads to mutual understanding, such as a written job description, may be all you need. 


 
 Compensation

Compensation is a package in itself.  Depending on the employer and the type of position, the package may include cash salary, bonuses, profit sharing, commissions, housing, utilities paid, board for horses, health insurance, retirement plan, meals, and/or a vehicle to drive.
 
 

Elements of Compensation

Cash Salary 

In most cases, some cash will be included as part of your compensation.  Be sure the cash provided will meet your real needs.  Make a list of the cash expenses you will have when you take the job.  Be sure to include amounts for recreation and savings in addition to more obvious expenses.  Total up your expenses.  From the total amount, subtract any income from other sources.  The figure you end up with is the lowest figure you should accept as a cash salary.  From your research, you may have a general idea of what people in your type of work are paid.  However, it is more important that your personal cash needs be met than it is to be paid according to any other standard.  Very few such standards apply to the horse industry anyway.  For further information on setting your cash salary, see the Job Security section below. 

Bonuses, Profit Sharing, and Commissions

Bonuses, profit sharing, and commissions are ways for an employer to provide additional cash compensation as the income from the business allows.  These types of compensation may be provided in addition to a cash salary or instead of a cash salary.  They can be good for both you and the employer in several ways.  (1) You may make more money than you would with just a cash salary.  (2) You will have an incentive to bring in more business for your employer.  (3) Your employer may be protected against losses to some degree when business income is down.  Some types of jobs traditionally provide these types of compensation.  For instance, full-time Riding Instructors frequently receive commissions on their lessons.  If you are compensated by bonuses, profit sharing, or commissions, be sure that they are paid as a direct result of your duties and responsibilities.  For instance, if you are paid commissions on sales of horses but someone else is doing all the selling, problems are likely to arise. 

Housing and Utilities Paid

Housing with utilities paid is probably the most common fringe benefit in the horse industry.  Many employers like to provide housing on the premises for their employees.  Doing so makes it easier for the employee to be "on call" for emergencies.  Plus, the housing portion of your compensation is probably not a cash expense for your employer. 

The housing provided may or may not be furnished.  In some cases, it may be shared with other employees; in other cases, it may be large enough for a family.  Utilities such as electricity and gas may or may not be paid by the employer.  If the employer is not paying these expenses, be sure to find out what they are likely to cost and figure them in to your total cash needs before accepting a job.  Telephone and cable bills are usually your responsibility. 

Board for Horses

Board for horses is also one of the more common fringe benefits.  Usually the limit is one or two horses.  Stallions are commonly not permitted.  The term "board" is frequently used, but in some cases only stabling or pasturing is provided, and any feed needed may be your responsibility.  Board for horses is a negotiable benefit.  We recommend that you have alternate horse care plans in mind in case your employer does not provide this benefit.  Don't let your horses limit the jobs you can accept. 

Health Insurance

Health insurance is a less common benefit.  Some employers provide it, and some do not.  Those who provide health insurance may have a waiting period ranging from six months to a year before providing coverage for new employees.  The cost of coverage varies in relation to the coverage provided.  If your employer cannot provide regular coverage, consider asking for less expensive coverage.  Catastrophic injury policies or those with higher deductibles are less expensive.  Some coverage is better than no coverage.  If insurance is not provided at all, you will need to decide whether to pay for it out of your own pocket.  If you decide to pay for it, remember to include it in your total cash needed for expenses. 

Retirement Program

Saving for retirement is commonly a low priority for people working in the horse industry.  However, the economic advantages of starting a savings program early in life are tremendous.  A few horse industry employers provide a retirement program for their employees.  If your employer does not, plan to establish an independent retirement account.  Be sure to figure the contributions you will make into your total cash needs. 

Meals

Meals are usually provided as a fringe benefit only when the employer provides meals for customers.  For instance, guest ranches and outfitters may provide some meals for their employees.  Sometimes employers who expect their workers to travel to competitions will provide a supplemental allowance for food while traveling.  Otherwise, meals are not usually provided. 

Vehicle

A few employers provide a vehicle for their employees to drive.  Because you will probably have your own transportation, this may not be a meaningful benefit.  In addition, use of the vehicle may be restricted in some ways, and the responsibilities for its maintenance may be difficult to work out. 


 
 
Remember -- If your employer is providing housing and you will be living on the premises, issues concerning family and pets will need to be worked out.  Some employers allow pets; some do not.  Some employers do not mind children being around, whereas others do.  Be prepared to set the employer's mind at ease concerning children and pets.  Who will care for the children while you are working?  How will the children be restricted from dangerous activities around the horses?  How will pets be contained so that they do not create problems for the horses and/or customers?

Idea -- Being stuck in employee housing when a job does not work out can be awkward for both employer and employee.  Before you commit yourself to the employer's housing, consider arranging an employment trial period of 30 days or so.  Travel light, and arrange for temporary housing during the trial period.  Do not move your family and belongings until you and your employer are confident that the situation is working out.  Plan for a place to live that you can return to if things don't work out.  If you do accept the job, be sure to arrange for the time you need to complete your move. 

Idea -- Equimax has information on compensation for the horse industry. Check out our Horse Insdustry Compensation Study currently has statistics for a few horse related positions and may add more as time goes by.  (If salary.com becomes unavailable or a better site is found, this link may connect you to a different site.)

Pitfall -- Don't worry too much about whether you are getting paid a fair wage in comparison to other people in similar jobs or what others might think about your compensation.  The most important thing is to negotiate a deal that meets your needs and makes you happy. 

Pitfall -- Be careful about creating a conflict of interest with your employer.  For instance, if you are selling your own horses and you work for an employer who is also selling horses, then you have a conflict of interest with your employer.  You may eventually lose your job because of this kind of situation. 

Pitfall -- If you own livestock or equipment that is of interest to your employer, don't mix your business dealings with the arrangements for your job.  For example, if you own a horse trailer, don't offer to provide it for free to enhance your attractiveness.  If something happens to the horse trailer, you may suddenly look less attractive.  By the same token, if you own mares that need to be bred, don't let your employer pay your regular compensation with stallion services.  If something happens to your mares and you no longer need the stallion services, you may have trouble getting the cash out of your employer.





 
 Job Security

Job security is an important, but often overlooked, part of negotiations.  Some people need more job security than others.  Job security is increased or decreased by the relationship between your abilities and your compensation.  If you are a bargain for your employer, your job security will increase.  If you are expensive for your employer, your job security will decrease.
 

Ways in Which You Can be a Bargain for Your Employer
Being able to do your work easily and correctly without much supervision
Being reliable, honest, punctual, and helpful
Making an effort to understand the employer's needs
Being happy with less compensation
Being patient about opportunities to advance

Ways in Which You Can be Expensive for Your Employer
Accepting a position where you need lots of supervision and help to do your work correctly
Being unpredictable in your work habits
Seeing everything from strictly your own perspective
Expecting a level of compensation that is high for your abilities
Being impatient about opportunities to advance

Don't assume that the best job you can get is the one that pays you the most and gives you the most responsibility.  If you do this, you may suddenly find that you are being replaced by someone who has more experience and will work for less money.  Don't forget Job Security.  Be conservative about your abilities, and don't be greedy about your compensation.
 

Remember -- You will almost always be in competition with other people for the good jobs.  If you have done your research properly and have spent some time talking with your professional peers, you will know which jobs you can realistically compete for and which ones are currently beyond your reach.  Without this knowledge, you could get turned down for one job after another and have no idea why. 

 
 
 Other Obligations

In the process of negotiating for a job, there may be prior or ongoing commitments you need to discuss with your potential employer.  You may have promised to work at a particular event for a previous employer, or you may have clients to whom you have made commitments.  After you are hired for the new job, you may have supplementary work you would also like to do.  For instance, if you are a judge and want to spend some of your time judging competitions, you will need to work out the details in advance with your employer.  If some of your past clients will be continuing as your clients when you take on your new job, determine if you will receive any special compensation from your employer for bringing in extra business.  It is much easier to discuss issues like these before you accept a position.  If you bring up these topics after accepting a position, your employer may feel like you changed the deal in midstream.
 
 
 
 Timing

A new job is a life-changing event.  Deciding whether to accept a job and when to accept it can be as difficult as deciding who you will marry or whether to have a child.  You cannot make such decisions without taking some risk.  To reduce the risk, get as much information as you can about the employer and the job before you make a commitment.  Make your decisions with care, and give them the time and effort they deserve.

When you find that special job, don't let anything of lesser importance prevent you from taking it.  If at all possible, be available when and where your employer needs you.  Be ready to devote your full time and energy to the job.

Remember that in order to be your most productive, you will need time off for rest and relaxation.  A good employer will understand this need and provide for it.
 
 

Pitfall -- Beware of dangerous thinking like this:  "I must take this job because it may be the only one I'll be offered."  Watch out!  This attitude may make it impossible for you to judge a job on its merits.  You are a valuable person with many gifts and talents.  Don't take a job you have serious doubts about just because you are afraid it is the only one out there for you.  If you are realistic about your abilities, if you have done your research correctly, and if you don't put too many limits on your search, you can be confident that you will always find another job to consider.

Pitfall -- Here's another dangerous thought:  "This job looks good, but maybe I should wait for a better one to come along."  If you have done your homework, asked the right questions, and negotiated a job that is good for you and your employer, take it!  Don't wait for something better.  Every job will have pros and cons. 

Pitfall -- Watch out for this kind of thinking, too:  "My lease doesn't run out for another six months."  Don't let anything of lesser importance deter you from accepting a good job.  Ask your landlord to find a new tenant and let you out of the lease, or  pay the lease off in full if you have to.  The same caution applies to pets and family members.  If your employer won't allow your dog on his premises, find a friend or relative who will take the dog for you.  Maybe the employer will change his mind, and the arrangement will only be temporary.  If your wife or children have commitments that prevent them from relocating when you need to accept a job, consider moving by yourself and relocating your family later.  Do whatever it takes to accept a good job.

Pitfall  -- Here's another way you can sabotage yourself.  "My previous employer is going out of business, and I promised to stay with them until the very end."  As an employee, you do not have an obligation to stay with any employer for longer than a reasonable notice period.  Don't let your desire to be helpful prevent you from taking a new position. 

Success -- Negotiations do not stop when you accept a job.  Any human relationship, including the employer/employee relationship, is built by negotiation.  You will know you are succeeding when you find yourself negotiating comfortably whenever problems arise on the job.

For more information on the negotiation process and almost every aspect of the employment process, get a copy of What Color is Your Parachute? by Richard Bolles.

   What Color is Your Parachute?
(If this book changes its title or becomes unavailable, you may be linked to a book with a different title.)




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