Negotiating Process in Employee Relations

Employee relations is a field that governs interactions between employees and the employer. In general, employee relations is a troubleshooting area, and its methods are only used when something goes wrong. Often, the aims of the employer and employee will differ. Employers may want to cut wages in order to save money, while workers may be expecting higher wages to keep up with the rising costs of living. The negotiating process is the steps that the business and employees go through in order to successfully come to an agreement.

  1. Negotiation Mediums

    • First, the employer and employees must find an agreed method to discuss the issues, some type of bargaining environment. No negotiations can begin until the players allow a conversation to take place. Many organizations will require a face-to-face meeting to help facilitate negotiations. Others may agree to conversation over email or digital boardrooms.

    Representatives

    • Next, the parties must choose their representatives. Some workers belong to unions that have representatives already chosen to negotiation with employers in case of conflict. Other groups must choose their own representative -- a required step for legal negotiations. In some cases, the company itself hires a representative who is meant to have a knowledge of the workforce and occupy a third-party position to help employees and the employer communicate.

    Preparation and Presentation

    • The next step is the two sides must prepare their arguments and work toward a presentation. Preparation is typically grounded in legal details. The sides must know what precise goals they want to work toward and how their position is related to regulations, standards and legal precedent. The sides present the arguments to each other through representatives.

    Agreement

    • After presentations, the employees and employer must agree on a solution. Many negotiating processes fail at this stage because one side is not willing to compromise. If the sides become obsessed with details, the agreement phase can last for months. However, when common ground is found and the players can agree on terms, the negotiation process is seen as a success.

    Formalization

    • The final and vital step of the process is formalization, where the agreed terms are written now and enacted legally, typically with a contract that binds both sides to certain actions. Agreements cannot stay as implicit compromises, when a side may be able to go back on its word without written proof and create additional problems.

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