Negotiation skills in the workplace

Negotiation is a useful skill that can help you get more from your career. Whether you’re discussing the salary for a new job, asking for a raise, or closing a deal with a client, it’s a handy ability for job seekers, employees and managers alike. 

Negotiating isn’t just about getting what you want; it’s about finding a mutually beneficial solution that considers the interests of everyone involved. It’s something that can help build your career and keep your work relationships happy and productive. In this article, we teach you how to improve your negotiation skills so you can handle future negotiations with confidence.

What are negotiation skills? 

A simple negotiation skills definition is: a set of skills that help you work out mutually beneficial agreements. At the heart of these skills lie:

• communication, 
• active listening, 
• problem solving, and 
• a willingness to compromise. 

In business, these skills mostly come into play when closing deals, where companies must agree on terms that benefit both sides. In personal scenarios, it works for conflict resolution, such as deciding on holiday plans or housework duties. Negotiation skills are versatile and useful across many different situations in your professional and personal life.

Why are negotiation skills important?

Conflict is sometimes unavoidable in the workplace, so it’s worthwhile learning how to deal with it. Negotiation skills can help you do so while maintaining strong, lasting relationships. Armed with these skills, you’ll be able to find win-win solutions while avoiding escalation. 

A well-negotiated salary or promotion can get you closer to your financial goals, while negotiated benefits can improve work-life balance and overall job satisfaction. Negotiation in the workplace can also help you come up with innovative solutions that benefit a range of stakeholders, making you a valuable team player.

In your personal life, negotiation skills can help you come to mutual understandings with loved ones on important matters, like where to live, where to send the kids to school, or what car to buy. 

Mastering these skills allows you to create more collaborative and understanding environments both professionally and personally.

Negotiation vs influence: What is the difference?

There’s a significant difference between negotiation and influencing skills, even though the two terms are often used interchangeably. 

Negotiation is a two-way process. It involves back-and-forth communication and haggling, to reach a mutually beneficial solution. This requires compromise, where each party accommodates the other to some extent.

Influence means persuading others to adopt your viewpoint, regardless of their needs. There is no back-and-forth or compromise to reach the end goal. In a negotiation, you use influence to persuade others to see your viewpoint, but allow yourself to be persuaded as well. Influence alone is more like manipulation of one party by another.

Both negotiation and influencing skills are handy to have in the workplace. The following examples of negotiation skills show how these techniques can complement each other.

What are the qualities of a good negotiator?

Don’t worry if you’re not a confident negotiator – good negotiation skills can be developed over time. What do successful negotiators do? A skilled negotiator uses different interpersonal skills, strategic thinking and emotional intelligence to influence and persuade. Let’s explore what makes a great negotiator stand out.

1. Communication

Clear, concise and persuasive communication is important when it comes to negotiation. Good negotiators get their points across in a way that’s understandable and compelling. They’re skilled in using different communication styles, such as assertive or collaborative communication, and can adapt these to suit the situation and audience. The ability to articulate thoughts and respond appropriately to others is an essential part of successful negotiation.

2. Emotional intelligence

Emotional intelligence refers to the ability to perceive, manage and evaluate emotions – both your own and those of others. In negotiations, this ability helps you keep your composure, build rapport and work through difficult conversations. Emotional intelligence is a factor in building trust and understanding, allowing negotiators to recognise underlying emotions and address them.

3. Planning

Being prepared is important when it comes to negotiations. Start by carrying out extensive research, setting clear goals, and anticipating potential counteroffers. Planning includes understanding the other party’s needs and preparing your own negotiation strategies accordingly. A well-prepared negotiator is more likely to remain focused and confident, steering the conversation toward a favourable outcome for both parties.

4. Value creation

Negotiators focus on creating value that benefits everyone involved. This means identifying shared interests and exploring solutions that are mutually beneficial. Brainstorming sessions are a great way to work out the needs and preferences of all parties, and can help in putting together proposals that create value for all.

5. Expectation management

Expectation management means setting realistic expectations and communicating them clearly to avoid misunderstandings. It’s being honest about what can be delivered and ensuring everyone understands this. Clear communication is important, as is adjusting expectations as negotiations progress.

6. Patience

Patience is a virtue, especially in negotiations. Patience allows negotiators to thoughtfully consider offers, explore options and avoid making hasty decisions. Patience might also be required during lengthy or tense exchanges, or cases where it is difficult to find common ground. Negotiations often take time and shouldn’t be rushed. 

7. Active listening

Active listening is not just about hearing what the other party says, but also about understanding their perspective. This involves techniques like summarising what has been said and asking clarifying questions. Active listening encourages a more collaborative negotiation process and lets the other party know they’ve been heard. This makes them more likely to meet in the middle when a solution is presented.

8. Problem solving

Problem solving in negotiation involves considering different approaches and being open to compromise. It’s one of the best negotiation methods when it comes to finding solutions that meet the needs of everyone. 

9. Decision-making

Clear and confident decision-making is important during negotiations. This involves weighing the available information, considering the possible outcomes and making choices that move the negotiation forward. 

Tips for developing effective negotiation skills

Developing the skills for successful negotiation doesn’t happen overnight. It’s a process that requires self-awareness, practice and planned improvement. Here are some practical tips to refine your negotiation skills, to create more positive outcomes in both your professional and personal life. 

1. Create a system to keep track of your negotiation skills

By keeping track of and reflecting on your negotiations, you can discover your strengths and weaknesses over time, and improve these skills. Here’s how you can approach this:

• Be proactive in recognising situations where you can practise negotiating. This could be a formal business negotiation or an everyday interaction, like resolving a conflict or making a purchase.
• After each negotiation, write down the details. Record what the negotiation was about, the strategies you used, the outcome and any feedback you received. 
• Set aside time to think about how each negotiation went. Ask yourself what worked well and what could have been better. 
• Look for patterns in your negotiations. Are there certain challenges you face? Do some methods work better than others? This can help you pinpoint where you might need more focus.
• Consider other strategies you could have used and their potential outcomes. This broadens your perspective and prepares you for a variety of situations in future negotiations.

2. Learn how to create value  

Mastering value creation in negotiations involves shifting away from a default win/lose mindset to a more collaborative approach. This helps build long-term relationships and ensures mutually beneficial outcomes. Here are some steps to achieve this:

• Approach negotiations with the belief that both parties can achieve their goals. This mindset encourages creative solutions and open communication.
• Try to understand the deeper needs and interests of both parties. What drives their view? What are they really trying to achieve? This understanding can reveal new possibilities for agreement.
• View all negotiations as investments in the relationship and the process, regardless of the outcome. Each interaction builds trust and demonstrates your commitment to finding a solution that works for everyone involved.

3. Manage your emotions and try to understand others 

Being in tune with your emotions and having empathy towards others’ feelings can influence the outcome of a negotiation. Here’s how to develop these skills:

• Recognise and understand your own emotions during negotiations. Are you getting frustrated? Anxious? Excited? Self-awareness allows you to identify these emotions and understand their impact on your decision-making and behaviour.
• Once you’re aware of your emotions, learn to regulate them. Techniques like deep breathing, taking a moment to pause, or even excusing yourself for a short break can help maintain composure under pressure.
• Understanding the emotions of the other party is just as important. Empathy involves putting yourself in their shoes and understanding their perspective and feelings. This provides valuable insights into their motivations and helps you respond more constructively during negotiations.

4. Build your confidence

A little bit of confidence goes a long way in the negotiation process. It directly impacts how you present yourself and how others see you. Building confidence is a gradual process that can be achieved through preparation, practice and positive reinforcement. 

Confidence often comes when you feel prepared and know what you’re talking about. Research the topic thoroughly, set clear goals for the negotiation and anticipate potential challenges and rebuttals. Being well-prepared has the added benefit of making your case more credible.

It’s also important to acknowledge and celebrate your successes in negotiations, no matter how small. Reflecting on what you did well can boost your self esteem. Even in situations where the outcome wasn’t ideal, focus on the learning experience for the future.

5. Sharpen your skills 

Refining negotiation skills is a continuous experience. To further develop your negotiation skills, consider the following approaches:

• Educational resources: research books, articles and online courses focused on negotiation. 
• Practise in low-stakes situations: use everyday interactions with friends and family to practise your negotiation skills, such as deciding where to eat for lunch.
• Set clear goals for negotiations: work out what you aim to achieve in each negotiation. Determine the best and worst outcomes you are willing to accept and use this to steer negotiations effectively.
• Know your negotiation angle: your negotiation approach should be well thought out before the negotiation begins. This allows you to negotiate in a structured and logical way, rather than by reacting to the other party’s approach.
• Understand the other party: researching the other party can provide valuable insight into their interests, constraints and negotiation style. This knowledge can guide your approach.
• Workshop your negotiation style: reflect on your past negotiation experiences to identify your style and personal roadblocks. This self-awareness allows you to plan improvements in areas such as assertiveness or active listening.

Negotiation will get you far in your professional and personal networks, which is why these skills are so highly sought after. Learning effective negotiation skills is an ongoing process, centred around clear communication, emotional intelligence, and thorough planning. By reflecting on your negotiations and continuously working on your skills, you can enjoy better outcomes and stronger relationships in all areas of life. 

FAQs 

What are the key skills needed for successful negotiation?

Successful negotiation requires: 

• clear communication, 
• emotional intelligence, 
• researching and planning, 
• the ability to create value, 
• managing expectations, 
• patience, 
• active listening, 
• problem solving and, 
• decision-making. 

How can I prepare for a negotiation?

Preparation for negotiation involves thorough research on the topic and the other party, setting clear objectives and anticipating potential counteroffers. This preparation helps you approach the negotiation with clarity and confidence, and build persuasive reasoning.

What are some common negotiation mistakes to avoid?

Common negotiation mistakes include:

• failing to prepare adequately, 
• not listening to the other party, 
• being aggressive or confrontational, 
• not managing emotions effectively, 
• lacking clear objectives, and 
• not being flexible or open to compromise.

How can I deal with difficult personalities during negotiations?

You can deal with difficult personalities during negotiations by:

• staying calm, 
• employing active listening, 
• understanding their perspective, 
• seeking common ground, and
• remaining respectful and professional.

What tactics can I use to create value for both parties?

To create value for both parties in a negotiation, focus on understanding the other party’s interests and needs, look for win-win solutions, think creatively about potential outcomes, and consider making concessions that are of high value to the other party but of low cost to you.

How can I improve my active listening skills for negotiation?

Improving active listening skills involves focusing intently on the speaker, not interrupting, asking clarifying questions, paraphrasing or summarising what was said to ensure understanding and showing empathy.

What are some tips for managing emotions during negotiations?

To manage emotions during negotiations, practise self-awareness to recognise and understand your emotional responses, regulate your emotions, and use techniques like deep breathing or taking short breaks. 

How can I build confidence in my negotiation abilities?

Building confidence in your negotiation abilities can be achieved through preparation, practising in low-stakes situations and learning from both successes and failures.

What resources can help me learn more about negotiation skills?

Resources for learning more about negotiation skills include books, academic articles, online courses and more. Engaging in workshops, attending seminars and seeking mentorship or coaching from experienced negotiators can also be beneficial.