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:
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:
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:
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.
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.
Here are several critical skills that can make you a great negotiator:
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 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.
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.
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 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.
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 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 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.
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.
So, what do successful negotiators do to hone their skills? Check out these helpful tips on how to improve 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.
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.
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.
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.
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.
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.