What is Negotiation?

The process of negotiation involves parties attempting to reach an agreement. It can occur in many different settings, such as business, law, construction, and engineering. In most cases, it’s used to arrive at a mutually acceptable solution to a problem.

Why Negotiate?

From job offers to construction contracts, negotiation is a key part of life. Negotiating effectively can often mean the difference between success and failure. Negotiation skills are especially important in the engineering and construction industries, where large projects can often hinge on the successful completion of complex negotiations.

As a successful negotiator, you must understand the needs and wants of both sides, and be able to find creative solutions that satisfy all parties involved. If you want to build a successful career, it’s vital that you learn to negotiate.

The Different Types of Negotiation

Negotiators use various strategies and psychological tactics to achieve their goals. There are many different types of negotiation, some of which are listed below.

Negotiating a job offer:

Job offers often involve salary negotiations. For example, an employer may try to lowball a prospective employee to get the best deal for the company.

Negotiating a career change:

This often occurs when changing jobs. Career negotiations may include salary, benefits, vacation time, and job duties.

Negotiating in construction:

This type of negotiation relates to the building of homes, bridges, and roads. Contractors negotiate with suppliers to get the best materials at the lowest prices.

Negotiating in engineering:

Often takes place in relation to the construction of machines and other equipment. Negotiators may try to get the other party to agree to a suboptimal design in order to save money.

Negotiating in environmental contexts:

This type of negotiation concerns the protection of natural resources. Negotiators may try to get the other party to agree to a plan to conserve energy or reduce pollution.

Negotiating in the workplace:

Workplace negotiation often occurs when an employee is promoted or demoted. These negotiations may pertain to salary, benefits, vacation time, and/or job duties.

Preparing for a Successful Negotiation

Regardless of the context, certain steps can be taken to help ensure success when negotiating.

First, it is important to do your homework and research the other party and the issue at hand. This will help you to understand what you are trying to achieve and what the other party is likely to accept.

Second, it is important to establish your bottom line: the minimum amount you are willing to settle for. This will help you to avoid making too many concessions during the process.

Finally, remaining calm and polite throughout the process is important, even if things become heated. The objective is to reach an acceptable agreement between both parties; behaving in an aggressive or confrontational manner is unlikely to lead to this outcome.

Principles Used in Negotiation

These principles can be applied to many situations, such as job offers, career advancement, construction projects, engineering projects, environmental issues, and personal relationships. Understanding these principles can improve your chances of success in any situation that involves negotiation.

The first principle is to identify your goals. What do you want to achieve? Once you have a clear idea of your goals, you can develop a strategy for reaching them. It is important to remember that your goal is not necessarily to get everything you want; rather, it is to reach an agreement that is acceptable to both parties.

The second principle is to understand the other party’s position. What are their goals? What do they want to achieve by negotiating? Once you understand their position, you can develop a strategy for reaching an agreement that meets your needs.

The third principle is to communicate openly and honestly. Be clear about your goals and objectives, and be willing to listen to the other party’s point of view. Honesty is essential to building trust and achieving a successful outcome.

The fourth principle is to be ready for a compromise. In some areas, you should be willing to concede ground to reach an agreement. Being prepared to compromise increases your chances of finding a solution that will meet the needs of both parties.

Negotiation is a complex process, but understanding these basic principles can improve your chances of success. Whether you are negotiating a job offer, career advancement, construction project, engineering project, or environmental issue, these principles can help you reach a successful outcome.

Closing the Deal

The final step in the process is to sign the agreement. This signals your commitment to uphold your end of the bargain and can help to prevent future disputes. And by putting the agreement in writing and signing it, you can help to ensure that the agreement is upheld.

Michael DeSafey is a leading executive recruiter for professionals in the construction, engineering, and environmental industries. He is currently the President of Webuild Staffing: www.webuildstaffing.com. To learn more about Michael, or to follow his blog, please visit www.michaeldesafey.com.