Bargaining Power

Labor negotiations require organizations to understand the financial impact of proposals before decisions are made. Nearly all companies rely on internally developed spreadsheets to forecast labor costs that account for 30 to 70 percent of operating expenses. Spreadsheets struggle to model multidimensional work rules in a two-dimensional format. This forces users to rely on complex, error-prone formulas that are difficult to maintain, increasing the risk that important workforce dynamics and proposal costs will be overlooked.

Recognizing the limitations of spreadsheets and finding no solution in the marketplace, labor negotiator Betsy Cagan developed Bargaining Power® more than three decades ago to provide organizations with a more accurate way to evaluate labor costs. To cost compensation, benefit contributions, time-off allowances and work rules, Bargaining Power® software creates a dynamic simulation of the workforce itself. Using employee data imported from HRIS systems, the software creates the workforce simulation that projects how employee costs change over time. It applies user-specified turnover rates and tracks workforce changes, allowing firms to evaluate proposals considering evolving demographic conditions.

“The spreadsheets we see are very cumbersome. Even the most sophisticated models can’t compete with compiled software. We developed Bargaining Power® to provide a comprehensive and intuitive solution,” says Cagan, president and founder.

The platform's value lies in its ability to reveal costs that are not identified through traditional approaches. In addition to accounting for workforce aging and turnover, the software evaluates the operational impact of changes to holidays, vacation allowances, sick leave, and other paid time-off provisions, including the cost of replacing lost productive time through overtime or workforce adjustments. It also accounts for interactions among contract provisions, helping organizations understand how changes in one area can affect expenditures elsewhere in an agreement and develop a more accurate understanding of bargaining-proposal costs.

The software’s capabilities have evolved in response to customer needs. Over the years, users have driven the addition of features supporting more than 50 pay types, benefit contributions, legislated payments, time-off allowances and work rules. Customer feedback has shaped reporting enhancements that allow companies to compare settlement scenarios, consolidate results across bargaining units, and review model assumptions. The platform's what-if analysis capabilities enable users to evaluate bargaining trade-offs, test workforce assumptions, and assess how individual proposals affect overall agreement costs. Proposal libraries help negotiators track movement throughout the bargaining process, while industry-specific additions, support a wide range of labor agreements.

Since labor costing challenges vary widely from one organization to another, Bargaining Power complements its technology with hands-on support and consulting services. The company works with organizations ranging in size from 500 to over 100,000 employees, including both large employers managing multiple negotiations and smaller firms with limited internal resources. During onboarding, the Bargaining Power® team loads the first agreement, reviews costing assumptions, and provides six to eight hours of hands-on training. Customers also have access to consulting services and around-the-clock support during active negotiations.

The practical value of that approach was evident in a large, complex bargaining environment. An aerospace and defense customer previously spent six to twelve months building and debugging spreadsheet models that often had to be recreated for new negotiations. By adopting Bargaining Power, the client gained enhanced insight costing capabilities that were impossible to replicate through internally-developed model. In their analysis, the organization estimated that the software eliminated their model rebuilding and debugging effort, generating staffing savings of $100,000 to $200,000. When training efficiencies and other operational benefits were factored in, the customer estimated total savings of nearly $500,000. Such outcomes helped Bargaining Power® earn recognition as the Top Labor Costing and Workforce Analytics Software 2026.

As labor agreements continue to evolve, Bargaining Power® remains focused on helping businesses accurately evaluate labor agreements and negotiation proposals. More than three decades after its founding, the company's core objective remains unchanged: helping organizations understand the true cost of proposed agreements, evaluate economic trade-offs, and approach negotiations with greater confidence.