Negotiating can sound intimidating. From deciphering negotiation tactics to understanding negotiation strategies, you're probably wondering where to even start.
For you to be prepared for your next negotiation, we're breaking down this necessary skill of the professional world. It’s important to remember just that: it's a skill. It can be learned and mastered. So, let's start with the basics.
What Is Negotiation?
Simply put, negotiation is a discussion with the objective of reaching an agreement. This discussion involves strategy, persuasion, and give and take to resolve the issue at hand in a way that both parties find adequate. The goal is to arrive at a compromise through a productive conversation, ideally while avoiding argument.
During the conversation, both sides want to achieve the best possible outcome for what they believe is the best position. Negotiation comes into play when you incorporate fairness and ensure the agreement reached is mutually beneficial.
Types of Negotiation Tactics + How They Work
First off, there are two broad types of negotiation to understand: distributive and integrative.
Distributive Negotiation
In a distributive negotiation, both parties are discussing a single issue—for example, the price of a good or service. You'd use this type when negotiating the price of a car or haggling with a street vendor.
The objective is to divide up the pie when there are limited resources available. Each party is actively working to get more out of the negotiation than the other party instead of coming to an agreement based on interests and needs.
Integrative Negotiation
During an integrative negotiation, more than one matter is at stake. Since multiple items are up for discussion, there is give and take to create the best possible outcome for both parties, so each walks away with some value. For example, salary negotiations are integrative negotiations.
With multiple things up for negotiation, like salary, benefits, and flexible work arrangements, there is the opportunity to create value for both the employee and employer by arriving at a mutually beneficial agreement. If you care more about having the flexibility to work from home vs. an extra couple thousand dollars, then you can bring this into the discussion with your employer until you arrive at an agreement that benefits you both. Many people confuse integrative negotiation with distributive negotiation, when many factors can actually be added to the table for discussion.
It's important to keep in mind which type of negotiation situation you are walking into so that you understand what’s up for discussion. Now, let's get into the negotiation tactics and negotiation strategies you can use to approach these situations, so you have the best chance of walking away with what you want.
Before the Negotiation
Identify Your Goal
Ask yourself what you're trying to get out of this negotiation. Clarifying this before you walk into a negotiation helps keep you better aligned during your conversation. Some questions to consider when identifying your goal are: What do you value? What are you willing to give up? Where are you willing to compromise? What are your absolute must-haves? What are all possible outcomes? Keeping your goals in mind will help you refocus your attention if and when the conversation gets sidetracked.
Know Your Priorities
Once you identify your goal, align it with your priorities. For example, if you're planning to meet with your boss to ask for a raise, think about what's most important to you. Is it the amount you see on your paycheck? The title on your email signature? Your benefits and flexibility? Knowing how you prioritize the important factors surrounding your negotiation clarifies where you are willing to compromise.
Also, taking the time to really think about your priorities before the negotiation will help you get clear on what you want. Maybe you thought you wanted a substantial pay bump, but when you take the time to reflect, you realize you’d be just as happy if you had the flexibility to work remotely and a more modest pay increase.
Do Your Research
If you're planning to negotiate for a salary increase, don't walk into the meeting and blindly throw out a number. You need to be able to back it up. Research the position and industry stats to learn what a fair compensation is for your position and responsibilities. If you feel comfortable, talk to your coworkers to get their input or even ask what they are making to better align your expectations. Arm yourself with information. If you can back up your ask with solid facts, you're more likely to walk away from the table with what you want.
Develop a Plan
You've heard it before: failing to plan is planning to fail. If you walk into a negotiation without a plan, you're already losing the negotiation. Know what you want. Know where you're willing to compromise. Know what will make you walk away.
Find the Best Time
Timing is everything when it comes to negotiations. Going back to our salary negotiation example, if you plan to ask for a raise for the coming year and you know the budget process is completed in November, you're not likely to get what you want if you approach your boss in December when the numbers are final. Get a meeting on the calendar in September or October to get ahead of the budget meetings. Even better if you can meet earlier, not necessarily to negotiate, but to plant the seed about all the great work you've done this year and that you'd like to discuss your compensation in the coming months.
Sometimes there won't be a best time. But be mindful of your surroundings and what's on the other party's plate. Taking the entire picture into consideration gives you the best odds of a successful negotiation.
During the Negotiation
Listen
Don’t think you need to walk into a negotiation and do all the talking. In an ideal negotiation, you listen more than you talk. Active listening is a crucial negotiation tactic. It requires you to fully concentrate on what is being said, understand the message and information, and then thoughtfully respond. Active listening involves understanding verbal communication and reading body language.
When you listen with detailed attention, you'll better understand the other party's viewpoints and discover areas for compromise. There may be more on the table to negotiate than you initially thought.
Communicate Clearly
As with most conversations, you want to ensure you communicate clearly and effectively. This means clearly and concisely stating what you want. If you cannot communicate effectively with the other party, a misunderstanding can lead to a big downfall—the better the communication, the better the negotiation.
Ask Open-Ended Questions
When listening to the other side's thoughts and concerns, ask open-ended questions to clarify their position. According to former FBI hostage negotiator Christopher Voss, it's important to ask 'what' and 'how' questions. For example, Voss says when given a difficult task at work, you can ask your boss, "How am I supposed to do that?" Asking this type of open-ended question forces empathy from the other side by making them think about how you can feasibly get the work done.
It creates an environment of collaboration because the question is tailored in a way to create a thought in the other person's head.
Get When You Give
This negotiation tactic is all about finding common ground. The goal of a negotiation is to find terms that work for both parties, so don't be afraid to counteroffer or ask for something else.
If you're asking for a salary increase, you've done your research, and you know what your salary should be to be fairly compensated for the market. If your boss offers you lower, make sure you get something else in return. You could provide them with the data and say if the lower number is as high as they can offer with the budget this year, that you’d also like to work from home two days a week.
Keep Your Emotions in Check
We know this is easier said than done. Especially when conversations get heated and you're finding it hard to keep your calm. But remember, it's not personal, so don't take it personally. When you're negotiating, especially at work, you're advocating for yourself while your boss is advocating for your company.
They're not out to get you just because a promotion is off the table right now. If you find yourself getting angry or on the verge of tears, take a breath. Literally. Stop and breathe a few deep breaths, refocus, and dive back in. If you let your emotions get the best of you, you may walk away with exactly what you came in with, nothing.
Make the First Offer
Making the first offer may be contradictory to other negotiation strategies you've heard, but here's why you should consider it the next time you negotiate: anchoring. Anchoring is a cognitive bias where an individual relies on the initial piece of information given when making a decision. In practice, if you come into a salary negotiation with a set number in mind, that based on your research, is a fair number, offer it up first. Tell them your price, back up your number, and then wait for them to respond. If and when they counter, they'll be more likely to base their offer off of your number, instead of the number they had in mind.
Be Willing to Walk
Based on your planning and preparation before the negotiation, you'll know what terms will make you walk away from the table. Another way to phrase this is determining your BATNA, meaning your Best Alternative to a Negotiated Agreement. This is the most advantageous alternative for you if you cannot come to an agreement with the other party or if negotiations fail. Know what your BATNA is and when it would benefit you not to settle vs. settling for less than what you want.
Using Negotiation at Work
Negotiation is a regular occurrence in the workplace. From small items like agreeing on a due date to more critical items like salary and benefits, it's a skill that you will learn and hone throughout your career. While the above negotiation tactics and strategies can be used in any facet of your life, there are a few key points to keep in mind when negotiating at work.
Remember Your Soft Skills
While we recommend keeping your emotions out of the negotiation room, that doesn't mean you need to take your soft skills off the table completely. Soft skills include people, social, and communication skills that are essential for job success. When negotiating, the following soft skills will come into play: knowledge, understanding, critical thinking, value, and confidence. Learn more about how to master these soft skills here.
Keep the Relationship in Mind
Relationships are crucial in the workplace, and if not appropriately handled, negotiations can cause strain in those relationships. While it's essential to negotiate for what you want and deserve, don't forget to think about the long-term the next time you sit down to negotiate. Effective negotiators work to maintain good working relationships with those involved in the negotiation.
They use persuasion and patience over manipulation to create a positive atmosphere during difficult conversations. Ask yourself if it's worth getting what you want at the risk of tarnishing a relationship.
Practice Makes Perfect
Negotiation is a learned skill. Some people are born great negotiators, while others really have to work at it. If you find yourself struggling through a negotiation or coming out of a discussion not achieving what you want, you'll know better for next time because, trust us, there will be a next time. You'll negotiate throughout your entire career. While the negotiations may vary in magnitude, you'll have plenty of time to practice and perfect your negotiation tactics.
