Performance Management as an Effective Negotiation Process

Employers can negotiate effectively with employees when the process is based on performance management. Employers can collaborate with their employees by communicating important business goals and the rewards associated with achieving results. The benefits of this collaboration are as follows.

  • Employees know their employer’s performance expectations.
  • Employees develop ownership for meeting or exceeding performance expectations.

Both employer and employees can agree in advance what the rewards will be depending on actual performance outcomes.

  • Communicate a clear understanding of how employee performance will be measured in the coming year.
  • Establish three to five reasonable, measurable goals with each employee at the beginning of the performance year.
  • Agree on what the salary increase and incentive award will be depending on actual performance outcomes.


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