September 27, 2017
Tips on Mediation in Workers’ Comp
by Teddy Snyder
The best way to start is to start. Don’t be afraid to make the first offer to settle. It establishes a ballpark for settlement.
The way mediations start is important. A bad start can result in a lot of wasted time getting to the place you should have been at the beginning.
The First Move
The best way to start is to start. Don’t be afraid to make the first offer to settle. Setting a settlement floor or ceiling tells your negotiating opponent where you are. Silence can falsely communicate that you are in the same ballpark.
Even if your offers did not get a response before, making a new offer now re-defines the settlement ballpark. An offer made “in light of new information” (even if that is simply a reconsideration) is not bidding against yourself.
See also: ‘Twas the Night Before Mediation
Start Very Big or Very Small
Think about how your negotiating opponent will react to your opening. Your initial offer should not be so ridiculous that your opponent will walk out. On the other hand, research tells us that an extreme number can lead to a final result closer to the speaker’s expectation than does a more moderate opener.
Pick the Tiny Issue
Seldom does a workers’ comp settlement turn on only one issue. Plan to start with the issue where the parties have the smallest evaluation difference and continue on as the challenge size increases. You may have to skip and come back to the thorniest issues regardless of size. Isolating issues and knocking them down one by one is an effective way to reach agreement.