5 Tips for Negotiating with Employees

The best business leaders treat their employees with the utmost respect and try to foster positive relationships with their team members. Unfortunately, this people-first policy can sometimes make it difficult for employers to negotiate or renegotiate with their staff. Indeed, as important as it is to keep your best employees happy in order to retain them, business owners can’t neglect the financial side of their company. After all, if your organization falls into debt and you’re forced to shut down, you won’t be able to pay anyone! With that in mind, today we’ll share five tips that business leaders can use to negotiate with employees. Check them out here:

Don’t Lowball

Negotiations are a game of give and take. It’s okay to suggest a lower offer first with the expectation of further negotiation. However, take care not to totally lowball your best employees. If, for instance, you offer an employee much less than what they’re worth, they might get offended and refuse to listen to further offers.


It’s imperative that business leaders understand every aspect of a contract negotiation before they enter into it. As such, do your homework well in advance. Study economic trends, inflation rates, review your company’s books, and determine what professionals in comparable positions are making. Handling this first will give you solid stats that you can use to great effect.

Get Creative

Perhaps you can’t offer an employee the full 10% salary increase they’re requesting. Not to worry. As an alternative, you can suggest other perks and benefits instead. Consider granting them additional time off, increased stock options, or greater autonomy in the workplace. Remember, not all employees are motivated by hard dollars and cents. Some value other things more highly.

Keep it Professional

Sometimes business negotiations can become tense; harsh words may be said, egos, bruised. It’s important to avoid this sort of petty behavior. Always strive to keep your emotions in check and remember that negotiating tactics are not personal attacks.

Be Honest

Employees appreciate bosses who are honest with them. Given that fact, the best advice we can give employers is to be open and honest in negotiations. If you play fair with your team, they’ll likely go above and beyond for you.


Of course, doling out bonuses and higher salaris is just one way to boost employee morale. In reality, employers should always be on the lookout for methods to improve employee performance, productivity, and mood. By introducing compliance training courses and providing your staff with elearning possibilities, for example, you can enhance company culture and strengthen your bargaining position later on. It may sound simple, but few people will decide to leave a work environment they love!