7 Lessons for Effective Bargaining
Ever wondered how some people just seem to have a talent for negotiating and always seem to get really amazing deals that to you seem totally unreal? Negotiation and bargaining skills are something that is relevant not only in business but in our every day lives, and are indeed a bit of an art. Do not fret - we are here to provide a crash course on effective bargaining and to tell you that, you too, can walk away from a negotiation and feel great about saving a great deal of money for your business.
Bargaining is a key component when employers hire new employees and is a vital skill for any business owner. It most often comes into play when employers consider how cost effective it is to have a larger number of employees where each has a specialized skill as opposed to having a smaller number of employees who are able to multitask and work on a variety of projects.
Below we present you with seven strategies derived from an American example to will aid you in building your bargaining power.
When to Begin the Groundwork
The logistic support and analysis behind the scenes should begin as soon as an enterprise is considered. In the event that the enterprise is existing, as with any project, the earlier preparation work is started, the better. One of the strongest strategies in preparation to wage a bargaining campaign is to look at the demands of both sides. Clearly outline which of your demands you are willing to be flexible with and which cannot be altered at all. Your key goal is to build a strong case for your view and piece by piece take apart the demands of the opposing side.
Tread Carefully at the Enterprise Bargaining Stage
To avoid confusion, at this stage it helps to refer to the good faith obligations established by the Fair Work Act 2009. These obligations aid and push both sides to view the negotiation with an open mind, allowing for a serious consideration of the other side’s argument. This will demonstrate the seriousness of your desire to come to a consensus and to also provide a powerful and rational explanation of your point of view.
What is a Successful Bargaining Campaign
To lead a fruitful bargain, your seriousness and commitment must be obvious to the other party. And what better way to accomplish this than have top officials endorse it - and maybe even present the pitch. The campaign must also be all-encompassing. This means that everyone in the company should actively participate - and not just one department. The views and strategies of all the departments should be utilized for best results.
The Strategy That Never Works for Employers
Avoid resorting to the “tit-for-tat” scenario, where both sides give in a bit. As soon as the other party, involved in negotiations sees this, they will understand that your position can be easily weakened and will go in for the kill. Stand your ground, and refrain from compromise that in the end will leave you out in the cold just because you wanted to show that you were willing to give up something important, only because the other side offered to as well.
Taking Charge Spells Success for the Bargainer
Do not allow yourself to be bullied into compromise. Firmly stand your ground and show that you have done your homework including the costs analysis, and resist high cost or impractical solutions.
Plan in Advance and Consider an Alternative
Make sure that you consider all options, especially the worst-case scenario and have a solution prepared for two outcomes. Have the best alternative to the negotiated agreement and the “best-worst” alternative.
Value the Individual Relationship
Always remember not to allow things to get personal whilst you are in negotiation mode and to value the input of the employees and the effect they have on the company.
What Should I Do Next?
Contact us if you would like further legal advice on negotiation. Our lawyers at You Legal will be happy to assist you in whatever way we can.
* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.