Negotiation

What is negotiation?

Negotiation is a communication process between at least two parties, aimed at reaching an agreement that benefits each side. In the HR context, it most commonly involves discussions about employment terms, professional development, collaboration rules, or conflict resolution. Participants in negotiations can include employees, job candidates, members of the management team, as well as external partners and vendors.

How is a negotiation different from a regular discussion?

While both negotiation and discussion involve the exchange of information, they differ in purpose, structure, and the way the conversation is conducted.

A discussion is primarily used to share perspectives or explore solutions together. It doesn’t have to result in a decision – its outcomes might include reflection, deeper understanding of a topic, or expanded knowledge. Discussions are usually less formal and more free-flowing. They often rely on an informal exchange of ideas between parties with similar goals or simply sharing their perspectives.

Negotiation, on the other hand, is a structured process aimed at reaching concrete agreements in situations where there is at least a partial conflict of interest. It follows a defined structure: preparation, presentation of positions, exploration of compromises, and finalizing the agreement. Negotiation requires deliberate communication management, and participants often use specific negotiation techniques.

What are negotiation skills?

Negotiation skills are a set of interpersonal and communication competencies that enable individuals to conduct conversations effectively in order to reach an agreement. These skills involve both thorough preparation and the ability to engage in dialogue thoughtfully, with flexibility and a solution-oriented mindset.

An effective negotiator should be able to:

• actively listen and read nonverbal cues,
• clearly articulate positions and arguments,
• identify alternatives and possible scenarios,
• accurately assess the risks and benefits of different options,
• demonstrate empathy and understand the other party’s perspective,
• maintain assertiveness and set clear boundaries,
• manage emotions and stress,
• seek compromise without giving up on key objectives.

How do negotiation skills support HR leaders and specialists?

In day-to-day HR work, negotiation skills prove useful in a wide range of situations:

How to develop negotiation skills in HR?

According to American entrepreneur Victor Kiam, “A negotiator should observe everything. You must be part Sherlock Holmes and part Sigmund Freud”. So if you want to negotiate effectively in the HR field, you need more than just knowledge – you need practice, emotional awareness, and the ability to learn from every conversation.

The good news? These skills can be developed!

Formal education

Start by building a strong theoretical foundation. Courses and training programs in negotiation, interpersonal communication, mediation, or conflict management are investments that quickly pay off in everyday HR work. Look not only for general negotiation courses, but also for specialized ones – such as negotiation in recruitment.

Case study analysis

Studying specific situations – your own or others' – helps you see different negotiation strategies in action. Analyze examples from industry literature or real cases within your company to better understand what drives successful outcomes, which mistakes are most common, and how agreements are reached. Expand your perspective – most situations have more than one good solution.

Mentoring and coaching

Support from an experienced mentor or coach can accelerate the development of your negotiation skills. Regular sessions give you the chance to work on specific challenges, test new approaches, and receive constructive feedback. Learn from people who’ve been through dozens of difficult conversations – their experience is a valuable source of insight and inspiration.

Self-development and reflection

Negotiation isn’t just about technique – it’s also about mindset and self-awareness. Working on yourself – developing emotional intelligence, mindfulness, empathy, and assertiveness – has a direct impact on how effective you are in conversations. Read books, listen to podcasts, and follow inspiring leaders to stay on top of trends. Take notes after difficult conversations – your observations will help you shape your own negotiation style.

Everyday practice

Every salary discussion, recruitment conversation, or attempt to resolve conflict is an opportunity to practice negotiation. After each conversation, ask yourself: What worked? What could I have done differently? How did others react to my words? These “micro-lessons” will help you build confidence and strengthen your negotiation instincts.

Examples of negotiation techniques used in HR

Here are a few negotiation techniques you can use during conversations with employees, candidates, or business partners:

BATNA

BATNA is a technique focused on identifying your best possible alternative if the negotiation does not end in an agreement. Before entering a conversation with a candidate or employee, determine what you’ll do if the other party declines the offer – for example, hire another candidate, leave the position open, or restructure the team.

Anchoring

According to this technique, the party who states a specific number first (e.g., a salary amount) often sets the tone for the rest of the discussion. People tend to subconsciously “anchor” around the initial number, making large deviations harder to accept. For example, if a candidate asks about salary expectations, it's often better to present your company’s range first rather than waiting for the candidate’s proposal, which might differ significantly from your assumptions.

The Foot-in-the-Door Technique

This approach is based on the idea that if someone agrees to a small request, they’re more likely to agree to a larger or more demanding one later. For instance, you might first ask an employee to temporarily support another team, and later suggest a permanent change in responsibilities or a promotion. Once someone has said “yes”, they're more likely to agree to further commitments.

Reframing

Reframing involves presenting a situation in a different light to change how it’s perceived. People often respond more to how something is said than to the content itself. Instead of saying, “We can’t offer a higher salary”, you might say, “We’re offering a package that includes greater flexibility and real growth opportunities”. The message is the same, but the framing shifts the conversation to value rather than limitation.

Win-win Technique

This method focuses on finding solutions that meet the needs of both sides – without creating winners and losers. For example, if an employee requests a raise, but the company lacks the budget, you might offer a lateral promotion and extra vacation days instead. Both sides benefit: the employee receives something meaningful, and the company avoids additional costs. This approach builds trust and supports long-term relationships.

Practical tips for navigating the negotiation process in HR

Negotiation is an integral part of every HR professional’s role. To ensure the process runs smoothly and leads to lasting agreements, it’s important to approach it with intention and a clear plan. Below are practical tips to help you prepare effectively:

1. Start with analysis and a clear action plan

• Gather all relevant information about the other party – for example, an employee’s work history, previous agreements, current needs, and expectations. If you’re using an HRM platform like PeopleForce, you can quickly access candidate or employee profiles, review team notes, check offer history, and revisit previously agreed terms.
• Prepare your data: have details ready on budget limits, company policies, salary bands, and market benchmarks.
• Define the main goal of the conversation and what you specifically want to achieve.
• Identify your flexibility limits – which concessions you’re willing to make, and which terms are non-negotiable.
• Plan for multiple possible outcomes – including both optimistic and more challenging scenarios.

Thorough preparation will boost your confidence and reduce the risk of making hasty decisions.

2. Listen actively and observe carefully

• Pay attention not only to what the other person says, but also to how they say it. Tone of voice, speaking pace, pauses, and facial expressions can reveal hesitation, uncertainty, or tension.
• Use active listening techniques: paraphrase what’s been said, ask clarifying questions, and confirm understanding.
• Avoid interrupting – give the other person space to express their needs and concerns.
• Watch for inconsistencies between words and body language – these can signal that a topic needs deeper exploration.
• Be mindful of your own body language: maintain eye contact, keep an open posture, and speak in a calm tone to create an atmosphere of trust.

3. Guide the process – take initiative

• Don’t passively wait for the other person to take control – HR should lead the structure and pacing of the negotiation.
• Begin the meeting by clearly stating its purpose and outlining the agenda – this helps organize the discussion and eases tension.
• Ask open-ended questions that invite the other person to share their perspective, while also allowing you to steer the conversation.
• Summarize key points throughout the meeting to stay in control of critical negotiation elements.
• Be proactive – don’t wait for the other party to make a proposal. Thoughtful, realistic offers build your credibility and increase the chances of reaching an agreement.

4. Use the “small steps” technique

• Don’t try to negotiate everything at once. Break the conversation into stages to better understand the other party’s position and respond in real time.
• Start with simpler or less sensitive topics to build cooperation and mutual trust.
• Gradually move toward more complex or delicate issues. Each agreement reached makes it easier to progress to the next stage.
• After each phase, summarize what’s been agreed – this gives both parties a sense of progress and reduces the risk of misunderstandings.
• Remember that some decisions take time. Don’t pressure the other side for an immediate answer if the topic requires reflection or internal consultation.

5. Keep your emotions in check

• Even when a conversation takes a difficult turn – such as pressure, disappointment, or rejection – stay calm. Your composure sets the tone and makes it easier to steer the discussion back to a productive path.
• Avoid reacting impulsively. Instead of responding immediately, pause briefly, ask a clarifying question or suggest a short break to regroup.
• Acknowledge the other person’s emotions if it helps defuse tension (e.g., “I understand this might be disappointing”).
• Don’t take criticism personally. Focus on facts, shared goals, and potential solutions. If emotions escalate, offer to take a break or reschedule the conversation for another time.

6. Document the agreement

• Always summarize key points after the conversation – preferably in writing. This could be an email, a note in your HRM system, or an entry in the candidate’s or employee’s profile.
• Ensure the summary is specific – who’s responsible for what, and by when. Leave no room for assumptions. Documenting the agreement gives both parties clarity and a sense of control over the process.
• If the negotiation covers multiple areas (e.g., salary, responsibilities, start date), organize the summary into thematic sections for better readability.
• When sharing the summary, ask the other party to confirm it – this helps prevent misunderstandings or differing interpretations.
• For more formal agreements (such as contract amendments or new offers), use electronic signature tools to accelerate the process and ensure security.

7. Use modern HR tools to manage the negotiation process

In negotiation, it’s not just about communication – it’s also about accuracy, data access, and smooth internal collaboration. That’s why HRM platforms are so valuable.

• With integrated modules like ATS, compensation management, and 360° reviews, you can quickly access candidate or employee histories, company policies, salary ranges, and notes from previous conversations.
• You can also easily create and send employment offers, document negotiation outcomes, share updates with managers, and automate approval processes.
• Features such as reminders, tagging, private notes, and e-signature integration help maintain transparency and keep the process flowing – without the need to switch between tools.

Using a single platform reduces response times, minimizes errors, and ensures a consistent experience for the candidate or employee – even during the negotiation phase.

Common mistakes in HR negotiations

Why do some HR negotiations end in success, while others lead to frustration and loss of trust? Often, it’s the result of small, avoidable missteps. Being aware of these pitfalls is the first step toward negotiating more effectively.

• Believing that “one script fits all” – Using the same negotiation script for every candidate or employee undermines trust and the sense of being treated as an individual. Every situation has its own context, which should be understood before presenting your arguments.
• Lack of preparation – Entering negotiations without understanding market data, internal salary ranges, or the business context is one of the most common mistakes. A candidate or employee will quickly sense inconsistencies and may lose trust in the entire process.
• Misjudging the other party’s priorities – Ignoring the needs, emotions, or expectations of the other side can lead to deadlock or tension. For example, if HR focuses on salary while the candidate prioritizes flexible scheduling, a mismatched offer can lead to disappointment or frustration.
• Focusing too much on defending your position – When the conversation turns into an effort to push through a predefined decision rather than finding common ground, it limits dialogue. A lack of openness to alternatives can quickly disengage the other party.
• Avoiding difficult conversations – Delaying or sidestepping uncomfortable topics (like denying a raise, changing responsibilities, or issuing a termination) doesn't solve the issue – in fact, it often makes it worse. This can lead to unrealistic expectations in future discussions.
• Communicating decisions without explaining the reasons – When an employee hears a “no” without understanding why, decisions can seem arbitrary or unfair.
• Negotiating under time pressure – Holding negotiations right before an executive meeting or while juggling other duties often leads to rushed discussions, poor judgment, and weaker outcomes.
• Giving in too quickly – Yielding to pressure without doing your homework or safeguarding company interests often ends in disappointment for both sides. Concessions should be deliberate, well-justified, and balanced with clear expectations.
• Being overly rigid or rule-bound – An overly formal or inflexible approach limits your ability to adapt in real time and can stifle productive conversation. It’s important to adjust your style to suit the situation.
• Skipping post-negotiation analysis – Failing to reflect on how the negotiation went and what could be improved is a missed development opportunity. Thoughtful reflection helps prevent repeating the same mistakes.

Negotiation – Summary

Effective HR negotiation is a blend of expertise, interpersonal sensitivity, and strategic thinking. The goal isn’t to "win" the conversation, but to collaboratively reach solutions that benefit all parties. Conversations held in a spirit of mutual understanding directly influence the quality of HR decisions, team stability, and achievement of business goals.

By developing your negotiation skills and leveraging modern tools, you strengthen your role as a strategic partner who bridges the needs of people with the objectives of the business.