Why negotiation skills are critical for success? Top tips on mastering the art of effective negotiations
As a business professional, freelancer, or even a student – it’s almost guaranteed you’ll be required to participate in negotiations from time to time. Negotiation skills are one of the most important skills for people in both personal and professional environments. Negotiation skills can be applied in situations including business deals, job offers, personal conflicts, or even bargaining in a street market for that product that you really want.
Imagine, you are interviewing for a job and are at a stalemate regarding salary even after having performed very well in the interview. So, what do you do?
You could use your negotiation skills and aim for a mutually positive situation by showcasing why you deserve the numbers you have quoted – maybe talk about your upcoming bonuses, salary increase plans at your current employer, or maybe another offer you are holding. Express genuine interest in the prospective employer, show gratitude and be ready for a win-win compromise if needed.
Here are the top 7 tips to sharpen your negotiation skills:
- Prepare, prepare, prepare: Before entering a negotiation, do your homework – research the other party, understand their motivations, and gather all necessary information. The better prepared you are about what the other party’s constraints are – the better you can handle the situation.
- Listen actively: Active listening is key to successful negotiations. Pay attention to what the other party is saying and ask probing questions to clarify their points. Please read my article on Active Listening for more tips.
- Be assertive in expressing your position: During negotiations, don’t be afraid to state your position clearly and assertively, but avoid being aggressive or confrontational, which might lead to a deadlock or stalemate situation.
- Positive body language – Your body language can convey a huge deal about your confidence and openness or fears and hostility. Use good friendly posture (avoid crossing arms), proper eye contact, and an open stance to project confidence and build trust.
- Keeping emotions under control: In case you show that you need that something at any cost, high chances are that you would be on the losing end of the negotiation since the other party is likely to take advantage of your massive interest in what they have to offer. For an effective negotiation, be calm, rational, and composed at all times. For example, in a tough discussion with your spouse, be the one who is composed, rational, and practical – your ability to be calm will help negotiate the situation better when you are cool and do not engage in escalating the situation by getting too angry.
- Compromise: Know your limits and be ready to compromise if the situation is within your acceptable limits. Do not be fixated on a particular outcome in case you are looking for a mutually positive outcome.
- Be ready to leave: A very effective negotiation technique, in case you are on the losing side, is to be prepared to walk away from the offer. In case the other party is also keen but was playing hardball – they might concede for mutual benefit.
- Practice: Negotiation is a skill that can be improved with practice. Seek out opportunities to negotiate, even if they are small, and try out different strategies.
A few more good articles available online on negotiation skills include:
- Harvard Business School articles: https://online.hbs.edu/blog/post/negotiation-skills
- You may also take a course on Udemy for negotiations: https://www.udemy.com/course/negotiation-skills-and-strategies
I am very confident once you learn the art of effective negotiations – your path to successful outcomes in both your personal and professional life would be very easy.
