The Art of Negotiation

Negotiating is a handy skill, from business deals to procuring goods and services to job offers and requesting a pay raise. It opens a world of opportunities when properly done.  However, it has a reputation as a challenging skill to utilize and master. Unsurprisingly, according to Procurement Tactics, 40% of all adults in the U.S. do not feel confident in their negotiation skills.   Even when it comes to salary negotiations, more than 55% of candidates don’t try to negotiate for a pay raise (according to hcmag.com), even when 73% of employers in the U.S. expect a salary negotiation on an initial job offer.

Negotiation, as defined by Investopedia, “refers to a strategic discussion that resolves an issue in a way that both parties find acceptable.”  It is both a science and an art—on the one hand, it requires systematic analysis and, on the other, interpersonal skills. It is a dialogue involving give and take and a measure of compromise with a nominal concession from the other party.   

Though it is often interchanged with bargaining, the two have a big difference. Bargaining is getting the best price or deal for products and services.  It is a subset of negotiating focused on sales and below the asking price.  On the other hand, negotiating is a broader term that addresses a mutual need, involving dialogue, discussion, and arriving at a mutually beneficial conclusion.

To be an effective negotiator, you must listen actively, think under pressure, be articulate, and be willing to compromise.  And most importantly, you must be confident. Three factors can judge effective negotiations: how well the agreement met the needs of both parties, the efficiency of said agreement, and whether the relationship between parties either improved or stayed the same.

When entering a negotiation, preparation is half the battle.  Here are a couple of pointers to consider:

Define what you want, do your research, and have realistic expectations

Before entering a negotiation, you need to establish what your goals are.  What do you want to get out of this conversation?  What are you willing to compromise?  What are you willing to concede?   Do your homework and get facts to support your goals.  Do some research on the other party as well to get a better understanding of what they want and why they want it.  Finally, set realistic expectations.  Knowing what you want and understanding the other party’s wants can help you put them.

Timing is everything

When you are setting up your meeting, consider the “when.” You need ample time without distractions from looming deadlines for either party. You also want to consider the time of day. Set up a time when both parties are at their best.

Establish rapport

Communication does not happen without rapport.  This doesn’t mean you have to ooze with charm and the gift of gab.  It means being sincere and open to discussion.  Speak with intention and match your body language with your words.  Make the other person feel you are invested in this discussion as much as s/he is. Validate the other person’s opinion while ensuring you are getting your point across.  They are more open to discussion once they are at ease with you.

Listen actively

Ask questions that evoke discussion and really listen to their responses. This will help you learn more about what the other party wants and how best to reach a mutually beneficial agreement.

Present alternatives and find a middle ground

When you go into a negotiation, it is not about winning and getting what you want.  It’s about finding a resolution to a mutual need.  Sometimes, it’s being prepared with agreeable alternatives to both parties. It’s also about getting the other party to concede without making them feel like they walked away with the short end of the stick.

Follow up and implement

Once a solution has been reached and everyone has reached a consensus, it is important to follow up and implement the changes discussed at the negotiation table. After all, execution is still part of the negotiation.

The important thing about negotiating is ensuring the relationship is maintained or strengthened by what was agreed upon.  Negotiation involves resolving the issue(s) while maintaining a good relationship with the other party. In business, the other party is often your boss, business partner, employee, or client.  And these are important relationships to keep.