A negotiation involves two or more parties entering a dialogue to reach an acceptable solution. It's a give-and-take process that usually requires compromise from each party. A negotiation may result in a contract, verbal agreement, or other forms of understanding.

In today's competitive Singapore job market, strong soft skills can help you stand out from other job seekers. For example, a salesperson, account executive, real estate agent, or lawyer requires excellent negotiation skills.

We explore negotiation skills in this guide and explain how to improve them. Here's what we'll cover:

• What are negotiation skills?
• Why are negotiation skills essential?
• Negotiation vs influence: What is the difference?
• What are the qualities of an effective negotiator?
• Tips for improving your negotiation skills
• Conclusion
• FAQs

What are negotiation skills?

Negotiations can occur between departments, managers, and colleagues in the workplace or between company representatives and clients.

For instance, in Singapore, project managers may negotiate project specifications and deliverables with stakeholders at companies based in regions.

Employees might request flexible work arrangements to balance work-life demands in a city known for its fast-paced lifestyle. Even before you start working for a company, you might negotiate your job scope or salary with the hiring manager.

Practical negotiation skills can help you achieve an outcome that benefits you and aligns with the expectations of Singaporean businesses.

Negotiation styles are a toolkit for reaching mutually beneficial agreements. Some examples of negotiation skills include communication, active listening, emotional intelligence, problem-solving, planning, decision-making, and persuasion. Below are a few situations where you might engage in negotiation techniques in the workplace:

• You could negotiate a project timeline with your team leader or manager.
• You could negotiate a pay rise after a promotion.
• You could negotiate with your manager for a few days off to deal with family matters.
• You could negotiate contract terms with a client in Singapore’s thriving business districts.

Why are negotiation skills important?

Negotiation skills can help companies in Singapore achieve their business objectives. Let's look at a few reasons why negotiation skills are important in the workplace:

• Building relationships: People may have different perspectives. Negotiation skills can help you reach a mutually agreeable solution. These skills seek to create value and goodwill and build long-term relationships.
• Resolving conflicts: During negotiations, the parties make concessions to arrive at a solution that respects their opinions and interests. This allows them to minimise the negative impact of a disagreement to achieve conflict resolution, which is essential in Singapore’s high-stakes business environments.
• Achieving goals: Good negotiation skills enable businesses to overcome problems that may prevent them from reaching their goals. They contribute to an environment of business success and increase the chances of future transactions. 

The importance of negotiation extends beyond the confines of the workplace. Negotiating skills also provide practical advantages that can positively impact your personal life. They can help you solve relationship problems, manage conflicts, and get a salary increase or a better job.

Negotiation vs influence: What is the difference?

People sometimes use the definition of negotiation skills to explain influencing skills. But the two terms don't mean the same thing. A negotiation seeks a two-way compromise. Influencing means persuading someone to do something. Although you can use influence tactics within a negotiation, negotiating isn't only about controlling the other party.

Let's look at an example to understand the differences between negotiation and influencing skills. Suppose you're attending a performance review where there's usually a discussion about salary. Since you've been doing your job well, your manager offers you a salary increase. Then, you make a counteroffer and reach a compromise. Here, you're using your negotiation skills to get a better offer.

Let's say you receive a poor performance review instead. Your manager doesn't think you deserve a higher salary, but you ask for it anyway. So, you need to influence or persuade them to give you a raise.

What are the qualities of an effective negotiator?

Here are several critical skills that can make you a great negotiator:

Communication

Clear, concise, and persuasive communication is vital in a negotiation. It enables you to eliminate misunderstandings and doubts that can prevent you from reaching a mutually agreeable solution. Also, make sure you use the right negotiation style for the specific situation.

The five main negotiation methods are collaborating, compromising, competing, accommodating, and avoiding.

Effective communication in Singapore's multicultural environment involves understanding and respecting different cultural perspectives. Whether negotiating in a local SME or a multinational corporation, clear communication helps bridge cultural gaps.

Emotional intelligence

Emotional intelligence is recognising another person's feelings and controlling your own. Understanding the emotional dynamics during a negotiation helps you maintain composure, build rapport, and focus on the core issues. Emotional intelligence is a critical tool for building trust and navigating challenging conversations.

Planning

It's essential to think ahead and devise a plan before a negotiation. You must research the subject matter, determine your desired outcome, and anticipate counteroffers to prepare yourself properly. You should also have at least one backup plan if you and the other party disagree.

Value creation

An effective negotiator focuses on creating value. This involves identifying shared interests and potential solutions that satisfy all parties involved. Try to devise alternatives that cost you nothing and benefit the other party. For example, a company could negotiate for three smaller weekly shipments instead of two larger ones to reduce warehousing costs.

Expectation management

Expectation management involves finding the right balance between steadfastness and collaboration. During a negotiation, it is important to ensure that both sides clearly understand each other's goals and expectations. If you can't reach an agreement with the other party, try adjusting your expectations.

Patience

Negotiations can sometimes take a long time, especially if they involve counteroffers and renegotiation. Avoid rushing into an agreement that could lead to a bad deal. A skilled negotiator practices patience and properly assesses the situation to find ways to achieve the best possible outcome.

Active listening

Active listening means focusing on the other party's opinions and expectations while waiting for your turn to speak. Understanding the perspectives of others enables you to stay engaged in the discussion and take advantage of important information.

You can use techniques to recall details and concerns from a negotiation, such as clarifying questions and summarising.

Problem-solving

Problem-solving involves identifying a problem, devising possible solutions, and taking the best course of action. Different problems may require different approaches, so be open to compromise and find a solution that's agreeable to all parties.

Decision-making

A good negotiator is adept at evaluating options quickly and acting decisively. Being confident and assertive removes uncertainty and stress, which the other side of the negotiation can use to their advantage. For example, if you experience analysis paralysis or decision fatigue in a negotiation, you might accept unfavourable terms to escape the stressful situation.

Tips for improving your negotiation skills

So, what do successful negotiators do to hone their skills? Check out these helpful tips on how to improve negotiation skills:

Create a system to keep track of your negotiation skills

To become a good negotiator, take advantage of every opportunity to practise your negotiation skills. After each negotiation, reflect on what went well and what didn't. Analyse your performance and identify areas for improvement, such as communication and emotional control.

Also, consider other approaches you could have taken and their possible outcomes. To keep track of your negotiation skills, maintain a detailed record of successful and failed negotiations.

In Singapore, keep a negotiation journal where you note specific cultural nuances, challenges, and successes encountered in local business environments. This can help you adapt and improve your strategies for future negotiations, especially in diverse areas like Marina Bay or Changi Business Park.

Master value creation

If you want to improve your value-creation skills, adopt a collaborative approach rather than a fixed-pie mentality. In negotiations, a fixed pie means that one side wins and the other loses. Learn how to identify the underlying interests of both parties involved and frame concessions to move towards a mutually agreeable outcome.

Manage your emotions and understand others

An effective negotiator can regulate their emotions and stay composed under pressure. Practise self-awareness to recognise your feelings and try to keep them under control. Developing empathy to help you understand the other party's emotions and respond constructively is also essential.

Build confidence

Thorough preparation makes you feel ready and confident. You can prepare for a negotiation by researching, setting clear goals, and anticipating potential challenges. Celebrating little and big negotiation wins can also help bolster your confidence.

Sharpen your skills

There are many things you can do to sharpen your negotiation skills. Consider practising negotiation in low-stakes, role-play situations with your family and friends or participating in debates and discussions to improve your communication and persuasion skills. You can also learn about negotiation from articles, books, online courses, and other educational resources.

Conclusion

Good negotiation skills can be beneficial for most roles within an organisation. They're especially important if you regularly negotiate with suppliers, clients, or stakeholders.

If you're an effective negotiator, you can help your company secure favourable contract terms while maintaining long-term relationships with clients or vendors. This can increase your value to your employer and benefit your career in Singapore.

To become a great negotiator, you must develop soft skills such as communication, active listening, problem-solving, planning, emotional intelligence, and decision-making.

Additionally, you can improve your negotiation skills by controlling your emotions, mastering value creation, practising negotiation, reading books and articles, attending an online course, and keeping track of your progress. Start building your negotiation skills now to open doors to your desired goals. 

FAQs

1. What are the key skills for successful negotiation?
   ⁠Essential soft skills to become an excellent negotiator include communication, planning, problem-solving, emotional intelligence, active listening, decision-making, patience, expectation management, and value creation.
2. How can I prepare effectively for a negotiation?
   ⁠To properly prepare for a negotiation, you need to research, set clear goals, anticipate counteroffers, and devise one or more backup plans.
3. What are some common negotiation mistakes to avoid?
   ⁠Making a conscious effort to avoid negotiation mistakes can increase your chances of success. According to Harvard Law School, common negotiation mistakes include:
   -⁠You fail to prepare yourself thoroughly.
   -⁠You focus on competing instead of collaborating.
   -⁠You rely too much on cognitive shortcuts.
   -⁠You let your emotions get the better of you.
   -⁠You take ethical shortcuts.
4. How can I improve my negotiation skills in Singapore?
   ⁠Improving your negotiation skills in Singapore requires regular practice and a commitment to continuous learning. Use role-playing exercises to simulate real-life negotiation scenarios, and seek feedback to refine your techniques.
   ⁠Education is also vital; attending local workshops, reading books, and taking online courses focused on negotiation can provide valuable insights and strategies. Analysing past negotiations, and analysing what went well and what didn't can help you identify areas for improvement.
   ⁠Additionally, understanding Singapore's business etiquette and cultural nuances is crucial for tailoring your negotiation approach effectively.
5. What tactics can I use to create value for both parties?
   ⁠Using collaborative negotiation rather than the fixed-pie approach is essential to creating value for both sides. You also need an in-depth understanding of both parties' interests and a well-planned concession strategy that can lead to a mutually beneficial solution.
6. What are some common negotiation scenarios for professionals in Singapore?
   ⁠In Singapore, professionals frequently encounter various negotiation scenarios in their careers. Salary negotiations are common, whether discussing initial packages with potential employers or renegotiating terms during performance reviews. Project timelines and deliverables often require negotiation, particularly in industries with tight deadlines and high client expectations.
   ⁠Contract terms with clients or suppliers are another typical scenario where the ability to secure favourable terms can significantly impact business success.
   ⁠Additionally, flexible work arrangements have become increasingly relevant, with employees negotiating remote work options or flexible hours to balance work-life commitments in the fast-paced Singaporean lifestyle.
7. What are some tips for managing emotions during negotiations?
   ⁠Be mindful of your emotions to keep them under control during a negotiation. When your emotional temperature gets too high, you can calm yourself down by taking a deep breath, thinking positive thoughts, diverting your focus, or taking a break.
8. How can I build confidence in my negotiation abilities?
   ⁠To become a confident negotiator, learn how to plan before a negotiation. Study the subject matter in detail, determine the outcome you want, and consider any potential obstacles that may come up. Doing your homework beforehand can help calm your nerves. You can also build confidence by rehearsing your talking points in front of the mirror or with a friend or mentor.
9. What local resources are available in Singapore to help improve negotiation skills?
   ⁠Singapore offers a wealth of resources for professionals looking to improve their negotiation skills. Workshops and seminars provided by organisations like the Singapore Business Federation offer hands-on training and practical advice.
   ⁠Online courses available through platforms such as Coursera and LinkedIn Learning can be tailored to fit busy schedules and provide in-depth knowledge and techniques.
   ⁠Networking groups and business forums provide opportunities to practice and learn from peers, sharing experiences and strategies. Additionally, numerous books and articles focused on negotiation can offer theoretical insights and practical tips.