Learning to Negotiate

            According to the article “Six Habits of Merely Effective Negotiators,” James Sebenius believes there are several common mistakes that hinder problem solving. In order to create a successful negotiation, it is incredibly important to consider the other side’s concerns, strive to meet both sets of interests, and assess the next best alternatives. In order to reinforce these concepts, each will be demonstrated in an employee’s request for 20% compensation.   

            The first mistake takes place when one side ignores the concerns of the other. It is very easy to focus on market strengths without identifying potential weaknesses. Try to put yourself in the other person’s shoes and attack the argument using their perspective. If you are able to solve their problems and dismiss their concerns, negotiations are more likely to unfold smoothly. When asking for increased compensation, an employee will be expected to provide justification. Employers want to know how the increase will benefit the company and will be more agreeable if an employee requests an available form of compensation. For example, ask to be compensated with a meal plan if there is a company owned cafeteria.

            Another mistake made by negotiators is associated with the distinction between the terms position and interest. Positions are the stances/opinions of each party and interests are the underlying reasons why the parties have taken that position. To achieve a mutually beneficial outcome, the interests (not positions) of both sides need to be clearly defined. The cliché, “it takes two to tango,” is incorporated in this concept. Male and female dance partners are assigned opposing stances since neither individual is interested in colliding: the male moves forward and the female moves backward. When arguing for a 20% increase in compensation, employees need to uncover the reasons why they want the raise and then determine why employers have taken specific stances. Most employees request more compensation because they want more disposable income for vacations. It is possible your boss does not want to increase salary more than 5% because he does not want other employees to be jealous or expect similar treatment. If that is the case, ask for an all-expenses paid vacation and agree to keep it secret.

 

             Finally, establish what the next best solution includes. Coined as the “best alternative to a negotiated agreement” (BATNA) by Roger Fisher, this reflects the course of action taken if a proposal can’t be negotiated. Although it is difficult, also think about what alternatives could exist for the employer.  The alternative in most cases is the status quo. Logically, employees asking for more money/benefits should be willing to accept any amount of increase since some improvement is better than the alternative- no change. Depending on their level of importance, an employee can create persuasive alternatives. For example, a senior level manager can threaten to quit and take away loyal clients unless he given the 20% increase in compensation.

            In a professional environment, negotiating is considered an art form but even the most experienced individuals make common errors. In many instances, individuals fail to assess the concerns, interests, and alternatives for both party involved in the discussion. Use the examples provided by the employee asking for a 20% increase in compensation to help frame a successful argument.