Negotiation: An Important Skill for HR
In an Organization,
Negotiations are generally associated with functions of the Procurement and
Sales departments as it is generally believed to be used in buying and selling.
Negotiation is an integral part of day-to-day life as people have different expectations.
This soft skill is more important for HR Professionals as they primarily deal
with people in the Organization. It is used in many HR activities, from hiring
the best talent to releasing employees.
Armstrong (2014)
describes Negotiation is about achieving the most gain in a discussion between
two parties through the process of bargaining, that is, through a process of
offer and counter-offer, and it has four steps;
- “Initial steps”
of deciding the strategy, listening, obtaining data and organizing
- “Opening”
step of challenge other party’s position and non-committal proposal
- “Bargaining”
involves Negotiation of the whole package
- “Closing” step by making concessions, applying pressure and arriving at agreements.
Janove (2019) states
that he realized while working with HR Professionals that many of them lack
negotiation skills that affect their ability to meet compliance, protect
against claims and build trust with all stakeholders within the Organization.
There are many
negotiation types but “Distributive” where one side Win and the
other Lose, and “Integrative,” when both parties benefit from the
outcome or win-win situation, are the two most common types of Negotiation and
outcome (Indeed, 2021). Negotiations can impact employee morale, productivity
and even the succession of leadership and HR Managers spend much time
negotiating with various members of the Organization (Olivera, 2015).
Skills for Effective Negotiations
According to Armstrong
(2014), the following are the skills required to be effective in negotiations
and HR Professionals should develop these skills through training and
experience.
Analytical
ability
Empathy
Interactive
Skills
Communication
Skills
Not exposing the
desire
Flexible realism. Flexible realism is the capacity to move
realistically to reduce claims or increase the offer.
Also, an article in
Indeed (2021) list downs following additional skills that are also necessary
for negotiations;
Patience
Adaptability
Persuasion
Problem-Solving
Conclusion
Negotiation skill is critical while discussing sensitive topics with employees such as compensation, resolving conflicts, building relationships and even discussing redundancies at difficult times such as a current pandemic. An HR Professional with good negotiation skills can protect the company from potential financial claims and damages to employer brand induced by angry or dissatisfied employees. It is an absolutely important soft skill to learn for all HR Professionals to handle employees and managers more efficiently.
References
Armstrong, M., 2014. Armstrong's Handbook of Human
Resource Management. 13th ed. London: Kogan Page Limited.
Erich Pommer,
2018. The Harvard Principles of Negotiation - Youtube. [Online]
Available at: https://www.youtube.com/watch?v=RfTalFEeKKE
[Accessed 17 August 2021].
Indeed, 2021.
12 Important Negotiation Skills: Definition and Examples. [Online]
Available at: https://www.indeed.com/career-advice/career-development/negotiation-skills
[Accessed 17 August 2021].
Janove, J.,
2019. Every HR Professional Needs Negotiation Skills. [Online]
Available at: https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/humanity-into-hr/pages/putting-humanity-into-hr-compliance-every-hr-professional-needs-negotiation-skills-.aspx
[Accessed 17 August 2021].
Olivera, F.,
2015. Honing negotiation skills a competitive advantage. [Online]
Available at: https://www.hrreporter.com/news/hr-news/skill-of-negotiation-important-for-hr/281281
[Accessed 17 August 2021].
PMTips, 2019.
The Art of Negotiation in Project Management. [Online]
Available at: https://pmtips.net/article/the-art-of-negotiation-in-project-management
[Accessed 17 August 2021].
Zieba, M.,
2018. How To Improve Your Negotiating Performance & Results in 3 Easy
Steps. [Online]
Available at: https://www.negotiationacademy.com/negotiation-tactics-techniques/master-negotiation-skills/
[Accessed 17 August 2021].
A negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable. One party will put its position forward, while the other will either accept the conditions presented or counter with its own position. The process continues until both parties agree to a resolution. As you discussed Fayaz, this soft skill is very important in HR view and has a direct impact to employer brand, employee satisfaction and HR budget also.
ReplyDeleteNegotiations involve dialogue between two or more parties with the aim of resolving disagreements and reaching consensus. Each party tries to advance its interests and tries to find common ground.
ReplyDeleteFor HR executives, in particular, negotiation skills are needed and can make the difference between new prospects and better contract conditions, and lost prospects and money left on the table. The reason why conversations can make some people uncomfortable is to suggest that there is a winning situation.
Human resource managers spend a significant amount of time negotiating with numerous stakeholders, and these negotiations can influence everything from employee morale and productivity to the health of the leadership pipeline. Therefore as you very well written, negotiation is a very important skill in HR..
ReplyDeleteNegotiation includes a discussion between two or multiple parties with the object of ending differences and reaching an understanding. Each party tries to further its interests and also tries to attain a compromise.
ReplyDeleteNegotiation skill is very imporant when dealing with people . My opinion is in business world where one side win and the other lose is common and may be acceptable .But when it comes to HRM this skill should be used in a way both parties benefit from the outcome or rather win-win situation, Good article Fayaz.
ReplyDeleteWell written article Fayaz.
ReplyDeleteYou have nicely described one of the major duties of HR.
An HR manager must always negotiate in order to keep the organization's wheels turning. It is important for the HR manager to stay informed about the situation, and if a conflict arises, he or she should use his or her best negotiation skills to gain the most benefit.
Negotiation is a voluntary method of resolving conflicts or disagreements or dividing resources among two or more parties (Zohar, 2015).
Negotiation is an important skill in all areas of life. HRD professionals need to know how to communicate his special interests, the long term needs of the organization, and the overall business objectives.
ReplyDeleteNegotiation skill is important to, Closing deals, Minimize conflicts , Build or improve relationship with other parties and Gain or maximize profits, Handling the situation. This skill is important for both work life and personal life.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteAs a part of the preparation, you need to be clear with points about what you want to convey to the opposite party. To negotiate effectively, managers need to be able to express their thoughts and needs clearly.
ReplyDeletenegotiation involves resolving conflicts of interest between two or more parties, this
resolution is achieved through persistent communication. Negotiation is a tool that can be used to
create a good relationship with others (Dreu ,2014).
A common misconception about negotiation is that it is a word that is only used by dishonest salespeople to gain an advantage over their competitors. However, whether in business or personal relationships, negotiation is an unavoidable aspect of the life. In the field of human resource consulting, negotiation skills are particularly important because they can mean the difference between new prospects and better contract terms. As you stated in your article, a skilled HR professional can protect the company from financial claims and damage to the company brand.
ReplyDeleteInteresting Article. As you have correctly concluded, negotiations can bring benefits to all the connected parties if they are done in the manner discussed in this article. Good negotiations specially with related to sensitive subjects like remunerations, career development, disciplinary actions, etc may contribute significantly to the development of the relationships between the parties and also for the successful existence of the business. Quality negotiations between the parties could also bring the success to the organization in the long-run rathe than the short-run. Keep up the good writing
ReplyDeleteNegotiation Skill is an important and yet hidden requirement for a HR person. Negotiations happen in every aspect of HR,
ReplyDelete- Recruiting an employee : HR negotiate with all the candidates to identify the suitable person
- Salary & Wages : HR negotiates with employees regarding salary and when salary increments
- Conflict : At the time of resolving conflicts among peers or teams HR team is involved to negotiate among the parties who are involved to the same.
- Trade union issues : HR has to negotiate with the companies trade unions whenever they arise their voice with regard to the employees benefits and rights.
Likewise, negotiation happens in every aspect related with HR and it is clinical skill for a HR person.
Creative article Fayaz, by developing and honoring negotiation skills will improve effectiveness with compliance and claim prevention and will improve relationship within and outside organization.
ReplyDeleteMahmoodi (2012) describe that the greatest way for individuals to deal with their differences is by negotiating. Negotiation is something what someone ones to gain from others. Individuals negotiate with each other every day even when they do not understand it.
ReplyDeleteTimely topic for HR professionals, as they are the potential of the companies. Good negotiation skills of HR helps to retain the Goodwill and reputation of the company and even more to retain the best fit as well which leads to the market success.
ReplyDeleteNicely Written Fayaz, & I personally think that it is an extremely timely topic for any HR professional as negotiation skills are essential for any individual to successfully navigate corporate world & in order to be a proactive leader. Thanks for Sharing
ReplyDelete