Negotiation skills: become an expert negotiator! Here, we discuss some of the different types of negotiating styles and common negotiation strategies.
Imagine you have been working at a company for a long time. You are ready to make a career move and transition to a more senior role with a higher salary. Although you get the offer, the pay is not as much as you expected.
So, what do you do? Do you go straight to the HR and demand a pay rise? Or do you go to them and have a rational discussion and tell them why you deserve more by negotiating?
Effective negotiation skills are a must-have, no matter what situation you find yourself in. From buying a new car, to bargaining over a starting salary, or even putting your kids to bed – negotiation is related to almost anything we do, which is why it helps to be good at it.
However, negotiating can often be a daunting prospect, especially to people who are uncomfortable with conflict. For example – a recent survey by staffing firm Robert Half, found that only around 39% of respondents tried to engage in a salary negotiation with their employer.
Here we will discuss some of the different types of negotiating styles, and common negotiation strategies so that you too can become an expert negotiator!
The main topics that this article will cover are:
Negotiation is a process through which people settle their differences and try and come to a mutual decision that reduces conflict between both parties. During a negotiation, it is common to see both parties trying to gain the maximum advantage, but the key is to reach a win-win solution which benefits everyone involved in the deal.
Negotiation helps in:
Negotiation, like any other business principle, follows a certain process which you need to know about so that you get a desirable outcome. Skipping any of these steps could lead to miscommunication along the line.
In the initial phase, you prepare facts and identify the potential opportunities that can arise out of the discussion. Next, you proceed to assess the interests of the parties involved and aim to create value and build the initial relationship. During the negotiation process, you aim to address everyone’s interests and expand on the value you think that you can create. This forges the path towards a successful future collaboration.
The negotiating process consists of four main steps which are explained below with the help of the example of a raise negotiation.
The advent of the digital age has seen the automation of many business processes. From project management tools like Trello, to communication tools like Microsoft Teams, there is a software for almost anything! Likewise, the process of negotiation is also possible to negotiate through tools like Contractbook.
With Contractbook you can make business deals and create contracts that you can share with your team and other people through its various features. The platform has multiple templates that you can customize to meet the latest legal guidelines.
The comment feature allows people to add in their feedback and views and clarify information without having to make multiple calls. Another feature which is extremely useful during the negotiation process is the change tracking feature which allows people to access the contract and keep themselves aware of any changes that are made.
Barriers to negotiation
Not all negotiations are successful at the first go, and in case you cannot reach a resolution in the first meeting, it is always better to schedule a meeting for a later date. One of the biggest hurdles to a successful negotiation is failure to understand and accept others’ viewpoints. Other common issues during a negotiation discussion are:
Developing a negotiation strategy takes time, and there are many tools that you can use. One of the better tools is Lewicki and Hiam’s Negotiation Matrix. The principle assumption of this model is that people have two main motivations during a negotiation.
The first one is to achieve their own interests, and the other is the level at which they are willing to co-operate. The combination of these two factors give you five different approaches to handling a negotiation which are domination, avoidance, collaboration, accommodation, and compromise.
The ability to negotiate requires a mixture of interpersonal and communication skills that are used simultaneously to achieve a certain goal. In the corporate world, negotiation skills are extremely coveted and it is a sure-fire way to get what you want at the time you want it. Whether it is a new business deal or a pay rise, you need to be clear on what your final objective is.
Some important negotiation skills and tactics are:
A negotiation is not a fight or a competition. It is all about communication and understanding. Every business is different and the situations in which negotiation is required differs immensely. This is because of the sheer number of factors involved such as the value of the deal, individual personalities, and relationship dynamics between everyone. These are all variable and can change over time. The key to a successful negotiation is to capitalize on what each party has to offer and evaluate the possibility of creating value for one another, which will lead to the most beneficial outcome in the long run.