The art of negotiation

We bring you a guide to the needs and benefits of negotiating and how to do it successfully. Effective use will be a benefit in your social life as much as at work

Negotiation is actually something we do all the time and is not only used for business purposes. We use it in our social lives when deciding on a time to meet, where to go on a rainy day or when choosing our next holiday destination with family or friends. Negotiation is usually considered as a compromise to settle an argument or issue, while gaining maximum benefit. There are many reasons why you may want to negotiate and there are several smart ways to approach it.

Negotiation in a business context can be used for selling, purchasing, staff contracts, asking for a pay rise, borrowing (loans) and transactions, along with anything else applicable for the business.

In short, the person armed with the most information usually does best. Therefore, always digest as much information as you can about the other party’s situation.

Clive Davis, director, Robert Half UK, tells Student Accountant: ‘The most important thing to remember is to do your research. If you are versed in all areas of the matter, you can foresee objections and suggest solutions.

‘It is also important to learn how to effectively communicate with various professional contacts, whether it be with your boss, colleagues or suppliers. Remember that taking a different approach can often help you reach the same goal.’

Anne-Marie Perkins, managing director at Hays Accountancy and Finance, adds: ‘Learning the art of negotiating will always stand you in good stead in life, so it is a valuable skill to possess both personally and professionally.

‘For areas of negotiating, such as benefits, training and career progression, make sure you are well researched and be prepared to make your case. Present your ideas, but also carefully listen to the feedback as it can provide valuable information for future negotiating scenarios. Have a clear idea about what you want to achieve, but don’t forget to be flexible with your ideas.’

One of the first rules to remember when negotiating is that nine times out of 10, your counterpart’s first offer will be an aspirational goal, not their minimum expected outcome. This means that you should never accept any first offer that is made – you should always negotiate.

There are a series of additional tactics to learn in order to negotiate more effectively. The flinch is one of the oldest negotiation tactics and one of the least used. A flinch is a visible physical reaction to an offer or price. The objective of this negotiation tactic is to make the other party feel uncomfortable about the offer they presented.

Also be aware that people often ask for more than they expect to get. This means you need to resist the temptation to automatically reduce your price or offer a discount.

Kelley Robertson is an author of negotiating books and president of the Robertson Training Group. She says: ‘Ask your prospect more questions and learn what is important to them, as well as their needs and wants. Develop the habit of asking questions. It is also important to learn as much about your competitors as possible, as this will help you defeat possible objections.

‘Most people hesitate to negotiate because they lack the confidence. Develop this confidence by negotiating more frequently, or at least by practising. Ask for discounts from your suppliers. As a consumer, develop the habit of asking for a discount when you buy from a store. Be pleasant and persistent but not demanding. Condition yourself to negotiate at every opportunity as this will help you become more comfortable, confident and successful.’

Davis adds: ‘Also consider the big picture. The more you know about your co-workers’ jobs and responsibilities, or the objectives of your vendors or suppliers, the better you can work with him or her. This will make you a stronger negotiator.’

As with any skill, you can also improve by enlisting a little help.

‘Sometimes it is a wise idea to consult a manager or mentor to help coach you in your negotiation skills. Practice makes perfect and those who are the most highly skilled are likely to have honed  their craft,’ advises Davis. ‘Review your performance. Following your negotiation, reflect on the meeting and identify areas for improvement. Did you reach your desired goal? What could you have done differently to ensure that your position is more persuasive.’

Another thing to bear in mind is cross-border negotiating differences. Negotiating is a way of life in some cultures, while in others the reverse is true.

‘For students looking to work abroad, do your research on cultural etiquette and differences. Speak with a recruiter that hires in your chosen country and ask their advice on things for you to consider when negotiating. Alternatively, if you have anyone in your networks that has made a similar move – ask for their opinions too,’ Perkins advises.

Regardless of what exactly you will be using negotiation for, embrace the idea as it is a valuable skill to possess professionally and personally. Learning the art of negotiating will always stand you in good stead in life, so what are you waiting for? Start practising.

"The most important thing to remember is to do your research – if you are versed in all areas of the matter, you can foresee objections and suggest solutions"

Clive Davis - director, Robert Half UK

"Most people hesitate to negotiate because they lack the confidence. Develop this confidence by negotiating more frequently, or at least by practising"

Kelley Robertson - president, Robertson Training Group