Bargaining Power is one of the many factors which determine the salary of the employees. Though the terms of the employment are determined by the employer, however it can be influenced by the following factors:
Perceived value that the prospective employee will bring to the company based on his capabilities.
Supply and demand of the qualified people in the market.
Though the Employer has a major role to play in the making of the employment contract, employee always has the option to negotiate the terms of the contract and leave or join the job depending on the availability of another offer.
Therefore employer ability to effect the terms of the contract is influenced by availability of requisite personnel for the job while that of employee is influenced by the alternative earning option available to him.
I will be in a position to make a non-negotiable offer in the future. This is because it can be made in case I have better employment opportunities, which I believe I will have at some point in my career.
If I receive such a non negotiable offer from my employee I would accept or reject depending on the situation. If he/she is indispensable in the given situation, I would accept the offer. However I believe such situation cannot last for long. In case I have another employee to fill the position I would try to negotiate or else reject the offer.This is because such non negotiable offer would encourage similar behaviour in the company.
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