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As a small business owner, I want to empower my employees to negotiate better with me.
I care about my team and I want them to feel valued. I also acknowledge that when my employees believe they are being treated fairly, they are more engaged. When they know that I listen to their wants, needs and worries, they are more likely to listen to my wants, needs and worries, which is reflected in my vision for the company.
I'm not alone.
According to a recent Oxford University study, happy employees are 13% more productive – and more likely to stick with them.
So, yes, I want to have conversations about benefits and pay with my employees. I also want you to feel empowered to start the chat. But I also want these conversations to be participatory, pleasant affairs – not heart-pounding encounters that we all just want to leave behind us alive.
It's not impossible. Here are my five successful strategies …
Related: 3 Golden Rules of Negotiation
Set a date
For most employees, discussions about salary and performance feel strange and uncomfortable. Even the prospect creates fear. I'm sure fear is one reason a U.S. Randstad poll found 57% of women and 51% of men never negotiated their pay. Help employees overcome their initial fear by adding a meeting to the calendar. Let them know how the discussion fits into the process of determining their salary and performance. Emphasize that this is not the meeting. Rather, it is the beginning of a dialogue about their role in the company's success over the next year.
Provide a list of questions that you would like to discuss
By answering a few simple questions, you will focus your team members and yourself. A few questions I ask: What role would you like to play in the company and are there any new tasks you would like to take on? How can I help you to be successful by helping you learn a new skill or by helping you remove obstacles? And what information should I include in our discussion about your compensation and benefits over the next year?
Related Topics: How To Negotiate More Effectively In Current Home Market
Let them collect facts and figures
State the research you should do before your meeting. For salary discussions, I ask employees to bring industry comps and other information with them to assess whether they are being paid correctly. Likewise, I make sure I know as much about our industry, our company, and our compensation plan as my team members know about their specific job titles. I share my sources with my team so they know what I am referring to. All of this work helps us get on the same page about salary expectations. At the same time, the conversation can clarify discussions that go beyond payment. If an employee is currently a trader but is hoping to switch to the role of portfolio analyst, I know that will feed into the discussion.
Encourage your team members to be clear about what they are asking for and why it is important to them. For example, if they want more flexible hours, ask them to bring a solid case. In the end, you need to be clear about your answer. As you allow more flexibility, you set expectations for deadlines, accountability, and communication. Make it clear to yourself and your employees how flexible working time approval will affect others in the company. Do you need to offer the same benefit to everyone in the office?
If you decline, you can also make it clear why. For example: I request that some tasks be carried out in our office, where I know that my team has a well-functioning IT network. Certain activities such as portfolio trades or live events are too risky to be carried out from a location with questionable connectivity. Yes, someone can work from home due to COVID, but no, they cannot stay at a beach hotel in the Bahamas for the next six months. When your team understands why you can or can't say "yes", it helps them figure out what to ask for next time. And it helps them to shape this question of the future in such a way that both they and the company benefit from it.
Knowing that "no" is just the beginning
Prepare for the pushback. Employees who feel heard and respected in a negotiation will likely continue to push for a solution that both of you will be satisfied with. Are you ready to change your answer? And what do you need in return for a yes? Don't worry about taking the time to think about your final decision. Your rep will appreciate your willingness to think more carefully about the options.
Relatives: To negotiate better I had to 'L.A. Right & # 39;
Empowering my employees to succeed in these difficult conversations not only helped reduce my sales, but also brought additional benefits. We have all sharpened our negotiating skills, my team feels valued and valuable and I don't wonder if people are happy and likely to stay or quietly angry and looking for another opportunity. My business is better for the negotiation toolkit I share with my co-workers and yours too.
Brennan Financial Services / 8201 Preston Road, Suite 400, Dallas TX 75225 / (972) 980-7526 Securities and advisory services offered by FSC Securities Corporation (FSC), a member of FINRA / SIPC, and financial planning services from DBT Wealth Consultants . FSC is separately owned and other companies and / or marketing names, products, or services referenced herein are independent from FSC.