HR professionals have to wade through difficult conversations and balance different emotions to keep employees motivated and productive. Though this is an almost everyday task, it can be draining emotionally. Moreover, negotiation skills may not be an inherent quality always.
Still, negotiations are a must-have skill for discussing salaries, resolving conflicts, or securing better vendor contracts. In this article, we explore why negotiation matters in HR, common challenges, and practical strategies to improve your skills.
Why Negotiation Matters in HR
HR professionals engage in negotiations daily, often without realizing it. Negotiation plays a role in various HR functions, such as salary and benefits discussions, where you must find a balance that satisfies both the company and the employee. It is also super important during conflict resolution, as you try to mediate disputes between employees or between employees and management.
Additionally, you may have to negotiate contract and vendor agreements to secure better terms with third-party providers. Another critical area is workplace policies, where the HR leader must persuade leadership to implement policies that benefit employees while aligning with company objectives.
Given these multiple hats you wear, honing your negotiation skills can make you indispensable.
Common Negotiation Challenges in HR
While negotiations are important, it’s not the easiest thing to do in the world!
As HR professionals, you are likely to encounter emotional stakeholders who have strong feelings tied to the outcome, power imbalances when negotiating with senior executives or vendors who have more leverage, conflicting interests that require balancing company goals with employee expectations, and a lack of preparation when entering discussions without a clear strategy or necessary data.
To steer away from these blindspots and to have a better say, learn different strategies, and implement them as needed in your workplace.
Strategies to Improve Your Negotiation Skills
Here are a few strategies to improve your negotiation skills. All of these strategies can be applied in any negotiating situation at work.
1. Active Listening and Empathy
Negotiation isn’t just about speaking. The bigger part of negotiation is about understanding the other party’s needs. To be an active listener, try the following.
- Paraphrase what the other party says to demonstrate understanding.
- Ask clarifying questions to uncover hidden concerns.
- Non-verbal cues like nodding and maintaining eye contact also help build trust and engagement.
2. Thorough Preparation
Going prepared into a negotiation builds confidence and increases the chances of a favorable outcome. Here are some things to do before you get into a meeting.
- Research market salary trends and industry benchmarks, especially if you’re heading into a salary discussion.
- Identify the Best Alternative To a Negotiated Agreement (BATNA) for both sides.
- Have data-backed arguments to support your case. For example, when negotiating health benefits with an insurance provider, gather usage reports and competitor pricing to strengthen your position.
3. Emotional Intelligence (EQ)
A key part of your job is to manage emotions—both yours and those of others. Strong EQ helps in diffusing tense situations. Below are some strategies to help you achieve high levels of EQ.
- Start with calm communication and strive to maintain the same tone throughout.
- Identify the underlying concerns that might not be immediately voiced.
- Build trust and rapport. For example, in a conflict between two employees, recognize the frustration but keep the discussion solution-focused for a productive outcome.
4. Framing and Persuasion
How you present your position can influence the response. Here are some idea to get started.
- Highlight mutual benefits instead of taking a rigid stance.
- Use storytelling to make points more relatable. For example, instead of saying, “We can’t offer you that salary,” frame it as, “We value your contributions, and while this is our current offer, we’d love to discuss other benefits that matter to you.”
- Offer choices instead of ultimatums to improve persuasion.
5. Know When to Walk Away
Not all negotiations will result in agreement, and that’s okay. Know your limits to prevent bad deals. Below are some situations where you should walk away.
- When the offer doesn’t align with company policies or values.
- The other party refuses to engage in good-faith discussions.
- Accepting the terms could lead to long-term issues.
The above strategies can help you become a better negotiator at work. Note that all that we mentioned in this article requires time and practice before they become a part of you. Embrace these ideas and start implementing them, one step at a time, and soon, negotiation will feel like second nature.