Negotiating

 Proficiency Indicators:

The following are key indicators of proficiency in negotiation:

• Complies with all relevant laws and regulations concerning negotiation and bargaining.

• Demonstrates understanding of the needs, interests, concerns, and bargaining positions of all parties involved.

• Assesses ongoing progress toward a mutually acceptable agreement.

• Identifies ideal outcomes and monitors progress toward achieving them, knowing when to conclude negotiations appropriately.

• Maintains professionalism throughout the negotiation process.

• Makes reasonable concessions to support progress.

• Reaches mutually beneficial agreements in complex or high-stakes negotiations.

• Establishes clear boundaries and authority for negotiations on behalf of the HR function.

• Negotiates effectively with both internal and external stakeholders, especially in critical discussions.

Key Concepts:
Negotiation styles and strategies may include:

• Perspective taking

• Principled bargaining (interest-based or integrative bargaining)

• Auction-style negotiation

• Position-based bargaining

Negotiating for Mutual Success

Effective negotiation is rooted in collaboration—where both parties seek outcomes that meet their most important needs.

Competency in Action

An HR team is preparing to renegotiate a contract with a major HR software vendor. The team comprises a director, a senior manager, and a staff specialist. Together, they apply the Relationship Management competency to ensure a smooth negotiation process.

• The HR staff specialist establishes rapport with the vendor, communicates HR’s needs clearly, and gathers insights into the vendor’s goals. They also prepare the manager and director for productive meetings.

• The HR manager manages internal conflict with the IT department, which prefers an alternate vendor. HR resolves the dispute by involving IT in all discussions and planning for implementation, ensuring their input is valued.

• The HR director, having cultivated a long-term relationship with IT leadership, convinces them to support HR’s preferred solution. Her prior responsiveness to IT’s HR needs builds goodwill and collaboration.

Understanding Negotiation

Negotiation is closely linked to conflict resolution. While negotiation can be a tool for resolving conflict, it can also trigger conflicts—especially over limited resources or differing objectives.

Negotiation involves identifying and separating needs from wants.

• Needs are essential for achieving core goals (e.g., budget approval for a critical initiative).

• Wants are desirable but non-essential (e.g., a generous buffer for that same budget).

Note: This section refers to general negotiation practices and does not replace formal labor negotiations, which are governed by contracts and labor laws.

Negotiation Styles

Negotiators typically adopt one of three primary styles:

• Soft Negotiators:
  Prioritize relationships over outcomes and may concede critical points just to reach an agreement.

• Hard Negotiators:
  Aim to win, often at the expense of the relationship. This style relies on position-based bargaining, treating negotiation as a win-lose scenario.

• Principled Negotiators (Interest-Based):
  Focus on mutual gain. Based on Fisher and Ury’s model, this approach separates people from problems, seeks shared interests, and encourages creative options that benefit both parties. The goal is a win-win outcome, with both sides making reasonable sacrifices.

Caution:
Tactics such as manipulation, false deadlines, brinkmanship, or extreme demands (low-/high-balling) can damage trust—especially in ongoing relationships. HR professionals should remain calm, maintain professional conduct, and stick to principled negotiation. If trust is violated, they must be prepared to walk away.

Unethical practices—like offering bribes or violating regulations—must be documented and reported appropriately.

The Negotiation Process (Principled Negotiation in Six Phases)

1. Preparation:
   Identify non-negotiables (needs), possible concessions (wants), and potential demands from the other side.

   • Define your BATNA (Best Alternative to a Negotiated Agreement).

   • Try to assess the other side’s BATNA as well.

2. Relationship Building:
   Establish trust through personal and professional rapport, encouraging openness and mutual respect.

3. Information Exchange:
   Clearly communicate each party’s positions and needs.

   • Use perspective taking to understand the other party’s constraints and goals.

   • The first offer often sets the negotiation "anchor."

4. Persuasion:
   Aim for shared gains by exploring underlying interests rather than fixed positions.

   • Look for creative, mutually satisfying solutions.

5. Concessions:
   Offer non-critical wants as bargaining chips.

   • In multiparty settings, use strategic concession-making or bidding mechanisms.

6. Agreement:
   Finalize in writing or through verbal confirmation, being mindful of cultural sensitivity around formality.

   • Confirm that all parties genuinely support the outcome to avoid superficial agreement.

Negotiating Across Cultures

Cultural awareness is crucial in global negotiations.
Nancy Adler suggests a synergistic approach, which values differences in negotiation styles and uses them to craft stronger agreements. This includes:

• Taking the cultural perspective of the other party.

• Understanding their values and priorities.

• Identifying how both sides can achieve their goals without compromise, if possible.

By embracing diverse perspectives, skilled negotiators can build trust, foster mutual respect, and reach creative win-win solutions—especially in multicultural environments.