When it comes to business skills, some rise to the top of the list. Good communication, hard work and diligence are among the most important qualities you can bring to your career.
Another one to add to the list is negotiation skills. Highly effective negotiation is critical to success for you and your business. Here are five reasons this skill plays a big part in a company or career.
1. Negotiation Develops an Advantageous Mindset
When you think of business negotiating, you may picture a boardroom filled with executives hammering out the details of a big contract. This scenario plays out in companies everywhere and is certainly an important place to have top-notch diplomacy skills.
However, these abilities play a role in situations at every company level. They work when a new hire and the HR representative discuss job responsibilities. They are also effective when coworkers disagree on handling a project and must find a resolution.
You may discover that employees throughout your company can benefit from negotiations training. The right skills can sustain relationships between staff members and help employees understand terms and expectations. These situations are just as critical as the C-suite negotiations in the boardroom.
2. Negotiation Creates a Win-Win Situation
The boardroom example can often conjure images of executives in heated arguments, each fighting for what they want. This mental picture can seem like an argument or competition with each person thinking only of themselves.
While there may be some truth to that image, it’s not necessarily good. True negotiation skills create win-win situations for everyone. Aggressive talks can result in getting what you want, but it may be a short-term victory. A successful agreement ends with everyone feeling they are leaving with something they want.
All parties should be satisfied after a successful negotiation. If people leave with hard feelings or resentment, it can lead to long-term problems and damaged partnerships.
3. Good Negotiation Skills Build Confidence
When you have the right skills, you can enter a negotiation with certainty. You can focus on the deal instead of ruminating about your ability to handle the situation. Your self-assurance can pay off in success — better relationships, a more profitable deal for your company or whatever is at stake.
4. High-Quality Negotiation Skills Contribute to Your Reputation
When you and your company become known for your solution-oriented approach, it elevates your reputation. Whether it’s the coworker in the next cubicle or the firm you do business with regularly, your good dealmaking skills put you in a positive light. You can be known as a trustworthy and fair negotiator. People will respect you and look forward to doing business with you.
This is where the long-term advantages of good negotiating skills come into play. When your abilities create a win-win situation, you might not get 100% of everything you wanted, but you maintain a good relationship with the other party. You create respect and goodwill that pay off in the future. The party you negotiated with is likely to work with you again.
5. Negotiations Create Profit
Good negotiations pay dividends in positive working relationships and an improved reputation. However, they are also essential in creating profit for your business.
The point of a negotiation is to get the best outcome; in the boardroom example, executives are working for the most favorable deal for their company. High-quality negotiation skills can differentiate between a good and a great outcome.
This concept is also true at an individual level. The better your skills are, the more likely your discussions will result in a favorable deal for you. Even small steps can add up; negotiating for a 10% salary increase pays off over time in your paycheck. It also benefits your company by retaining you as an effective employee.
Negotiation is a critical business skill. Consider training if you think you or your workers can benefit from improving this ability and increasing your company’s success factor.