Negotiating an employment contract can be a difficult and uncomfortable task for both the employee and employer. It is human nature that negotiations are typically interpreted as win-lose scenarios. Why can’t negotiations be interpreted as win-win; and what is a win-win negotiation? A win-win negotiation is when both the employee and employer make adjustments to the employment contract that allows both parties to achieve a mutually agreeable and beneficial result.
Win-Win Employee Negotiations:
- Establish financial boundaries: As the employer, establish a range to negotiate within, be open to making small adjustments.
- Set and communicate expectations: As the employer, communicate aspects of the job and compensation that are non-negotiable up front, including in the job posting.
- Be transparent during the negotiations: As the employer, once it has been communicated what is negotiable be transparent throughout the negotiations and explain the organization’s needs and the reasons behind certain aspects of the negotiation.
Pros of Win-Win Employee Negotiations:
- Creates respect and trust between the employee and employer.
- Employee gains a greater sense of loyalty and responsibility to the employer.
- Demonstrates the employer’s desire to listen and consider the employee’s needs.
- Results in savings on future hiring and replacement costs.
Helpful Tips:
- Track the results of negotiations – This will allow for the employer to determine what is working and what is not working.
- View human capital costs not as a cost, but as an investment that needs to be managed.
- Negotiations do not have to be monetary – Non-monetary negotiation items include title, start time, additional vacation and/or personal days, waive eligibility criteria for employee benefits, allow employee to work from home (flex schedule), wardrobe stipend. Be creative!
Chelsea Baglien / Human Resources Advisor / PEO Canada