The phone rings. The mayor is on the line to offer you the job! There really isn’t anything like the emotional high of being offered a city/county manager position, particularly if it is your first one.
You think you’re ready to go, but are you really? There is the matter of negotiating your employment agreement. And if you are not thinking of one, or have never had one, it should be at the top of your list of next steps.
As ICMA senior advisors, we assist with a wide variety of issues and it’s not uncommon for us to offer insight on employment agreements. While the senior advisor is not going to give you actual legal advice, he or she should be able to offer common sense advice and wisdom on what is normal and what is definitely not normal, and perhaps some pitfalls to avoid when crafting your employment agreement.
What’s in a typical employment agreement? Generally, most agreements outline the term of employment, duties to be performed, compensation and benefits, working conditions, and what happens in the event of employment separation. How do you approach negotiating your employment agreement? Let’s explore some different strategies.
Understand Your Bargaining Position
• Understand your bargaining power and what kind of leverage you might have, which requires true self-honesty. The last thing you want to do is inadvertently negotiate yourself out of a job offer.
• Stay at the table and always consider the whole deal. Be certain of the “hills you’ll die on.”
• Be aware of the employer’s sensitivities and constraints.
• Is there a way to create options for mutual gain?
Take the Initiative
• Volunteer to write the first draft. Use the wonderful ICMA Model Employment Agreement as a template.
• “Go high” on your demands, knowing you may be willing to dial it back at a later point.
• It is an entirely different vibe having to respond back to a low offer and then having to negotiate upward.
Do Your Homework
• Information is power.
• Ask an ICMA senior advisor (icma.org/senior-advisors). He or she may know the background to the position and maybe even the council or commission members.
• Ask the current or prior manager about the position. Ask the state association or ICMA. Is there a local managers’ group?
• Is the prior manager’s employment agreement available? Read the budget.
• Scour the internet about the employer.
Contract for the Worst
• An employment agreement is very much like a marital prenuptial agreement; you are negotiating with your exit in mind.
• A decent severance payment can make all the difference in the world for you—and your family—to transition to the next step in your employment journey.
• Beware of ambiguous definitions of reasons to terminate for “cause.”
As a final note, having an employment agreement is not weird or strange. Indeed, I would suggest that not having an employment agreement is atypical. Don’t be swayed by the suggestion that “our word is our bond” or a “handshake deal” is good enough. Accepting a new position is too important and you are more than likely making significant changes to your life and, perhaps, the life of your family not to take all the steps possible to secure your future.
You do not have to confront this issue alone. There are resources out there to help you navigate the journey to a mutually satisfactory and executed employment agreement. Reach out to your senior advisors or to the great staff at ICMA. We are here to help!
GREG SCHULTE has over 30 years of local government experience in California and Colorado. He is a senior advisor for ICMA and the Colorado City/County Management Association.
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