Salary negotiations can be delicate situations and require a great amount of strategy to achieve optimal results. It's a balancing act between reaching a conclusion that will please your employee and staying within the guidelines of your budget. People do it every day, but it doesn't make this process any less difficult or important. It can often be a make it or break it situation for your employee as your attentiveness and flexibility could determine if they're starting a job hunt or if they have an increase in workplace morale. With it being such a sensitive subject, it's important that you go in prepared and know how to tactfully negotiate a raise with your employee.