Having a solid, trusting relationship with your subordinates is critical to your success as a manager. In order to succeed in your own role, you must first ensure that they succeed in theirs. As a manager, it is your responsibility to lead, supervise, and motivate your subordinates effectively. While the relationship between you and your employees can be friendly and respectful, it is also your job to make sure they are performing the tasks that are assigned to them. For this reason, it is important for managers to know how to negotiate with subordinates in a manner that is professional and courteous. Consider the following tips for negotiating effectively with your subordinates. 

Be Open and Respectful

Any time you are communicating with your subordinates you want to make sure that you are courteous and respectful. Avoid playing the power card and using your authority to undermine them. This will only lead to frustration and resentment among your employees. Rather, make them feel valued and respected by using their names and acknowledging their presence. Let them know what your expectations are and in turn, seek to understand their expectations of you. Provide feedback and praise and ask them for feedback as well. Encouraging open and honest communication between you and your subordinates will only strengthen your relationship and build a stronger professional foundation. 

Be Honest and Clarify Your Reasoning

If one of your employees is coming to you to ask for a raise, you need to be prepared to handle the discussion with clarity and honesty. Rather than simply saying, “I’m sorry but I cannot do that right now,” you need to clarify your reasoning and share that with your employee. They deserve to know the truth and you owe that to them. Perhaps you cannot fulfill their request because profits are down or it might be that the employee was not performing well enough. Whatever the reason, be honest with them and let them know exactly why you can or cannot meet their demands. At the same time, strive to provide helpful feedback that can help them reach their goals. 

Listen

Never underestimate the power of listening in a negotiation. This is especially true when it is a conversation between a manager and subordinate. By listening to your employee, you are demonstrating a level of mutual respect and you are showing them that you actually care about their feelings. Ask questions and give them a chance to respond as you listen intently. Let them know that you have a vested interest in their success and that you truly care about their needs and concerns. Give your employees a chance to explain their point of view without getting defensive. Employees value and look up to a manager who is willing to listen to them. 

Be Flexible

It’s never a good idea to enter into a negotiation with the notion that you aren’t budging. A manager should always be flexible when it comes to dealing with an employee’s concerns. If you always follow strict guidelines, you aren’t providing employees the flexibility they need to improve their performance. Your employees are your most valuable asset so be willing to make concessions and compromise if it means keeping a good employee on staff.

Experienced negotiators are familiar with common practices and etiquette that are widely accepted at the negotiation table. When it comes to negotiating, it is important that all parties adhere to a few common courtesies and understand the basics of negotiation traditions. While there are no formal guidelines for negotiating, there is a generally accepted set of rules that is helpful in maintaining civility throughout the process. It is highly recommended that you become familiar with these practices so you can foster better working relationships with your peers. This will ensure that your counterparts will be willing to negotiate with you again in the future. 

Be Genuine and Respectful

A negotiation should never be seen as a confrontation. While it is perfectly acceptable for both parties to advocate for their positions, the goal should not be to declare a winner and a loser. Rather, the goal of a successful negotiation is to reach a win-win outcome. Therefore, it is important to always have a respectful attitude toward your counterpart. You want the other party to see you as a sincere, honest, and approachable person that would be willing to do business with you again in the future. 

Be a Good Listener

All too often negotiators have a detailed plan of everything they want to say during the meeting but they forget that there are two sides to a negotiation. Even more important than what you want to say, is listening to what the other person has to say. When you take the time to listen, you will learn important information about what is motivating your counterpart and how you can help each other accomplish your goals. You will learn about their point of view, goals, and objectives, and this will help you reach a win-win agreement.

Give Advance Notice

Most professionals do not appreciate ambush negotiations. This is not well received and will most likely not yield the results you want. Rather, you should always establish the time and details of the negotiation in advance and notify everyone involved so both parties have time to prepare. 

Be Fair

Inflexibility is not typically in your favor when it comes to negotiating. If you enter into a negotiation refusing to make concessions and compromise, you will most certainly irritate your counterpart and this can hurt your chances of closing the deal. Instead, you need to be open to conversation and be prepared to offer concessions. Negotiations are a two-way street so you need to be prepared to accept alternative outcomes. 

End Gracefully

Regardless of whether or not the negotiation ends the way you want it to, it’s important to end on a positive note. If possible, you should try to mitigate any negative feelings so you can leave the door open for future negotiations and possible business opportunities. 

Perhaps your company is seeking a product or service that will help your organization. You will likely receive a business proposal from a salesperson in order to persuade you to purchase their product or service. This document is designed to sell you on the product by outlining your needs and how this product will meet those needs. This proposal will also include a price as well as any additional details about contracts or terms of service. Upon receiving this proposal, you will have the option to look it over and either accept it, reject it, or counter it. Oftentimes a company will want to negotiate a few changes and will choose to counter a business proposal. Here are some common practices that should be considered when countering a proposal. 

Back Up Claims with Research

Before simply asking for a lower price or changing the terms of the contract, you need to do some research on similar products or services. For example, what is the going rate for this service? Are other competitors offering better pricing or deals? Having a solid understanding of the market will give you leverage when it comes time to negotiate. This will also prevent you from asking for something that is unreasonable. You will create more opportunity for negotiation if you have facts and research to back up your requests. 

Be Clear About Your Goals

If you plan to counter a business proposal, you need to be clear about exactly what you want to change. Know your goals and be very specific about what it is you want to accomplish. You want to let the other party know specific details so there is no ambiguity or confusion when you are negotiating. 

Be Willing to Compromise

Whenever you are negotiating it’s important to be flexible. Very seldom does a negotiation end successfully without compromise. Consider offering some concessions in your counteroffer in exchange for something else. This will show your flexibility and willingness to compromise. 

Don’t Push Too Hard

Think about what you are negotiating and whether or not it is reasonable. If you push too hard, the other party might perceive you as someone who is too difficult to deal with and they may rescind their offer. Some companies don’t want to start relationships with others who are going to be troublesome. Remember that the best negotiations end with parties feeling like they have gained something. 

Prepare a Letter of Intent

It can often be helpful to prepare a letter of intent along with your counteroffer that reflects the details of the proposal. This shows the other party that you are serious about doing business with them and that you aren’t wasting their time. It acts as an informal agreement that can help move along the negotiation process.

When preparing for a negotiation, the negotiator has to prepare in different ways. First, there is the tangible work that is visible to both parties which might include research, strategies, and the actions and words spoken during the negotiation. Then there is also the mental preparation involved such as anticipating the interests, needs, and goals of the other party. The mental preparation for a negotiation also requires the negotiator to assess their own temperament, strengths, weaknesses, fears, and motivations. This inner work might be invisible, but it is equally as important as the tangible work that is presented at the bargaining table. When you know you are going to be up against a tough negotiator, it’s so important to take the time to mentally prepare yourself for what lies ahead. Here are a few things you can do to mentally prepare for a tough negotiation. 

Self-Assess your Strengths and Weaknesses

Perhaps you are extremely knowledgeable about finances and budgets but you aren’t as confident when it comes to product awareness. If you know that will play an important role in the negotiation process, get expert help so you can feel confident and prepared. The last thing you want is to enter into a bargaining war feeling fearful or hesitant. Spend time self-reflecting on your personal strengths and weaknesses. Are you a good listener? Do you handle pressure well? Are you able to diffuse conflict when it arises? Do you remain calm and collected or are you easily frazzled and frustrated? Knowing your strengths and weaknesses will help you better understand what specific areas could be improved. This allows you to enter into the negotiation knowing your inner self is well prepared. 

Be Mindful of Your Temperament

Are you someone who is strong, assertive, and confident, or are you easily intimidated by people of greater status or authority? Do you lose your temper easily or do you manage to stay calm even under pressure? Your temperament can have a huge impact on the outcome of your negotiation. Chances are if you are negotiating with someone who is tough, they aren’t going to back down easily. This means that it might be to your advantage to remain calm, sensitive, and focused rather than coming in with arms swinging. That said, you don’t want to be bullied and backed into a corner either. It’s important to anticipate what might come your way and consider how your temperament will affect the situation. If needed, be prepared to adjust your temperament as needed in order to reach an amicable solution. 

Develop a Response Plan

If you know you are about to enter into a bargaining war, there’s a high probability that the conversation could become tense. Develop a plan in advance and prepare responses that will allow you to remain calm, yet assertive. Then, practice these responses with a friend or family member who agrees to play the aggressive negotiator. You can get useful insight as to how your own responses might affect the responses of your opponent. 

Practice Mindfulness

Right before the negotiation, take time for a few mindfulness exercises. These exercises relax the body, open the mind, and allow you to calm yourself so you can be in control of your emotions before you begin the negotiation. Deep breathing exercises and meditation help to calm a negotiator’s anxiety so they have increased attention, better awareness, and more solid concentration during the negotiation process. 

The coronavirus pandemic has brought with it numerous challenges for businesses. From “shelter in place” orders and closed restaurants to canceled conferences and travel bans, the pandemic has dealt a major blow to the economy. Combine closures and social distancing with supply chain interruptions and changing consumer behaviors and the effects of the pandemic continue to wreak havoc. In such uncertain times, it is important to have a plan in place to help minimize your financial loss. Here are five tips for protecting your bottom line during this economic downturn. 

Assess the Situation

The first step in protecting your bottom line is assessing your business to determine where it is financially at this time. From there, you can figure out what steps need to be taken. Critically assess what risks and challenges you are facing and think about the main problems you need to deal with first. For instance, if your employees cannot come to work are they able to work from home? Do your remote employees have the tools needed to do their job from home? Is there still a way you can deliver to your customers? Think about the biggest factors that will affect the day-to-day operations of your business and create a plan to address those needs first. 

Communicate with Customers and Clients

While it’s normal to proceed with caution before starting new projects, that doesn’t mean you can’t still reach out to staff and customers. It’s important that you don’t leave your staff and customers in the dark during these times. Be sure to communicate any data and information you can provide and let them know what steps you are taking to help them. Send regular emails and updates to keep everyone informed and updated with the latest news. As for customers, seek new ways to serve them despite the current challenges. For example, expand online offerings or provide home delivery services to help you stay afloat until things can return to normal. These measures can help you safeguard your financial stability during this pandemic. 

Invest in Work From Home Technology

Your employees are the backbone of your business and without them your daily operations will cease. For this reason, it is important to invest in the right tools and resources to help your employees do their job from home. While most people likely have a computer and an internet connection, they might not have secure Wi-Fi networks, collaboration tools, or internal communication programs that are necessary for remote work. In addition to providing tools, be sure and offer round the clock IT support for employees as they learn to navigate these new waters of remote work. 

Take Control of Your Cash

Now is not the time for frivolous spending. Those free lunches and snack carts may have been a wonderful incentive for employees but tough times call for tough measures. Be intentional about every dollar you spend and cut off all unnecessary purchases. Never make financial decisions without top-level approval and make sure everyone understands where any cash is going at this time. Put together a 30,60, and 90-day plan for cash flow projections and be prepared to borrow money if needed. Try to figure out where any losses might be coming from and stop them immediately. Reduce any areas where you can and reallocate money to other areas that might be more important at this time. 

Create Something New

Times of crisis are often the perfect times to pioneer something brand new. This could be your chance to create a new product or service that you would have never thought of before. For example, many businesses began experimenting with contactless service and delivery options as well as virtual conferences and meetings. If you learn to adapt to the current situation and how to respond to the changing needs of your customers, you are doing more than just protecting cash flow. You will also be strengthening your brand for the future.

Entering into a business partnership is a lot like getting married. You are likely going to spend more time with your business partner than you would with your spouse so it’s important to choose your partner wisely. In an ideal partnership, everyone contributes their time and efforts equally in order to reach success. In reality, however, this isn’t always the case. Unfortunately, people will disagree, personalities might clash, and goals and values may differ. As a result, you may find that your business partner is reluctant to address certain issues the same way as you. Perhaps you have great ideas and visions for the business but your partner hesitates to agree with you. This could lead to tension, as you both obviously see things differently. When this happens, there are certain strategies you can employ to help convince your partner to give your recommendations a shot. Here are 5 suggestions for how to approach a reluctant business partner. 

1. Have a Defined Value Proposition

If there comes a time when you need to negotiate with a reluctant partner you should definitely prepare a value proposition prior to the discussion. An effective value proposition articulates why your partner should listen to your suggestion. When you create a compelling value proposition, you are explaining to your partner why your suggestion will be beneficial to the business. It allows you to clearly state the benefits of your idea and how it will positively impact your business. Be sure your value proposition includes specific examples and unique selling points that set your idea apart from others. 

2. Back Your Proposition Up with Research

Even if you already have a good idea of why your idea will work, it’s important to spend some time doing research to back up your claims. Your partner might not agree with your opinions, but it is hard to disagree with solid evidence. Gather information that supports your ideas and why they are beneficial and then come prepared to share this research with your partner. 

3. Show Long-Term Growth

Oftentimes people are reluctant to do something that requires a big change because they might not feel like the short-term benefits are worth it. However, if you can provide evidence that supports long-term growth it will look much more appealing. Be prepared to show how your idea will provide a long-term solution or benefit that will be good for your business and focus on the value it will bring to your business long-term.

4. Invite Your Partner to Share

Negotiation is all about give and take. If you are trying to negotiate with someone who is reluctant, let them know that you understand their hesitation and fears. Invite them to share their concerns and listen intently to what they have to say. Keep an open mind and be willing to see things from their point of view. Not only will this make your partner feel like their feelings are validated, but it prevents you from making a decision without considering all angles. In addition, invite your partner to share their own ideas or solutions. This lets them know that you value their ideas and you genuinely care about working together as a team. 

5. Be Willing to Collaborate

Perhaps you won’t get the exact results you want, but don’t let this be a reason to close the door on your idea. Remember that you are partners and encourage each other to come up with an idea together. Collaboration is about taking the best that each partner has to offer and creating a new solution. Sometimes a reluctant partner will feel better about agreeing to something when they feel like they had a say in the decision.

After lengthy discussions that may have included haggling, swapping concessions, bargaining, and maybe even stonewalling, there’s no doubt that it feels good to have a done deal. However, the goal of negotiation shouldn’t be to “win.” If you look at it that way, that would imply that somebody else had to be the “loser” and neither party wants to walk away feeling like they “lost.” Rather, successful negotiators understand that negotiations aren’t about manipulating the other party to close a deal. Instead, they should be “win-win” negotiations where both parties walk away feeling satisfied. Whenever you are closing a deal, it’s important to focus on more than just the “I win” attitude. Leaders and managers should be trained to develop negotiation skills that not only help them close deals, but also help them create long-term relationships and lasting value. As you approach the end of your deal, consider the following tips for closing a deal that will lead to a successful business relationship. 

1. Consider the Needs of Your Counterpart

As stated before, it’s always best to strive for a win-win outcome. In order to do this, you must consider the needs of the other parties involved. What is motivating them and what value can they bring to the table? What is most/ least important to them? What problem are they having and how can you help solve it? By considering these needs, you can adjust your offer to be more beneficial for both parties. In consideration of their needs, you should also come prepared with a list of concessions that you are willing to make. Be prepared to offer alternatives and concessions before coming to a final agreement. When you seek to find mutually beneficial solutions, you are likely to build trust and respect with your counterpart. 

2. Treat the Other Party with Respect

In many cases, your relationship with the other party doesn’t end when the negotiation is over. It is very likely that you will continue to work with the other party as a client, customer, or vendor. Therefore, it is important to be respectful at all times so you can build a long-term relationship with them. 

3.Ask Open-Ended Questions

During the course of any negotiation, it is always important to ask open-ended questions like, “Can you tell me more about that?” or “Can you explain why this is important to you?” This helps to give the impression that you genuinely care about their needs in addition to your own. It also forces you to do more listening and less talking, which enables you to collect valuable information about the other party. 

4. Summarize the Deal

Imagine that you have just sat through an informative presentation. Despite how well you may have listened and taken notes, you could probably still benefit from a convenient recap at the end. The same holds true when closing a deal. Before signing on the dotted line, it can be helpful for both parties to restate everything they have gone over to be sure all parties are on the same page. 

5. Always Express Appreciation

It’s good to keep in mind that both parties are taking time out of their day to go over this information. No one likes to feel unappreciated, and this is not different in negotiations. Always be appreciative of the other party and their time. After all, this is a great way to pave the road for more successful interactions with one another in the future. 

6. Monitor Your Counterpart’s Behavior

As you approach the end of your negotiations, watch closely to see how the other party seems to be reacting. Do they seem happy with the outcome or do they appear angry or frustrated? Do they seem to understand everything that was discussed or are they confused? Do they seem excited about working together or anxious to get the deal over with? All of these can be signs of either a successful negotiation or one that is leaving the other party with a bad taste in their mouth. Since it is likely that this relationship will continue, be sure and address any questions or concerns the other party may have and use this opportunity to get them excited about working together. 

7. Close with Confidence

Once the contract is signed and the negotiation is coming to a close, remember to remain positive and confident until the very end. The ability to negotiate successfully with another party will create lasting value for your business and helps to form the beginning of a professional working relationship. This is a great time to share your excitement about the new opportunity and thank the other party for their cooperation.

With business travel and face-to-face meetings limited as a result of the ongoing pandemic, the negotiation process has changed completely in the past year. The sales process has faced a new challenge in closing deals without human interaction. Virtual negotiations have made it more challenging to connect with customers in a way that builds trust and rapport. After all, it’s not easy to strike a huge deal with someone you have never met in person. Research has even shown that people are more likely to walk away from a deal when they don’t connect with the other person. Thus, the current remote working environment has left many sales professionals seeking new ways to connect with their clients virtually. The good news is that you can take practical steps to increase engagement and make your virtual presentations feel more personal. 

Always Use Video

One of the most critical components of any negotiation is the ability to connect with the other person. There is no question that video conferencing greatly enhances that human connection far better than email or chat correspondence. It is vital that both parties be able to see each other in real-time, make eye contact, and conduct an actual conversation versus an email negotiation. In addition, it is worthwhile to invest in an HD quality web camera so that people can see yours clearly.

Acknowledge the Attendees

Just as you would shake everyone’s hands and introduce yourself upon entering a face-to-face meeting, you want to formally acknowledge each person attending the virtual meeting. Greet each person by name and thank them for attending. Throughout the meeting, it is also important to call on each person by name and set the tone for others to do so as well. 

Make Eye Contact

Eye contact is extremely important in any conversation and it allows you to connect with those around you. This is no different in a virtual setting. Make sure that your camera is angled appropriately so that you can look directly into the lens. This helps the recipient feel like you are looking directly at them. Always look right at the camera, and avoid looking up, down, or at something on your desk while you are speaking. Just as you would in person, you want to maintain eye contact whenever you are speaking in a virtual negotiation. 

Minimize Distractions

You want to be sure your virtual setting is just as professional as an in-person setting would be. For example, make sure your room is well lit so that your screen does not appear dark. You would never turn the lights off in a meeting room so make sure your screen looks the same. Likewise, turn off the self-view feature, as it is too tempting to want to look at yourself to see how you look on screen. You would never look at yourself in a mirror in a physical meeting, so there is no need to be distracted by self-view on your computer. Finally, avoid cheesy backgrounds and choose a space in your home that is free of distractions in the background. 

Pay More Attention to Tone and Inflection

Since body language is taken out of the equation in a virtual environment, people are only left with tone and inflection by which to judge a person’s emotions. Make sure you are speaking clearly and using a tone and inflection that is confident and warm.

As much as we want negotiations with our counterparts to be mutually beneficial, there are times when we are faced with difficult negotiators who just aren’t willing to budge on anything. Sometimes these negotiators can even be adversarial, resorting to manipulative or bullying techniques to get their way. So, what do you do if you find yourself face to face with a difficult negotiator? No matter how the other person acts or what tactics they employ, it is important to respond in a certain way in order to keep the negotiation moving forward. Consider the following tips for negotiating with someone who wants to play hardball. 

Take a Deep Breath and Stay Calm

No matter how the other party acts, what strategy they use, or what behavior they display, you need to stay in control. Oftentimes, when we are attacked by an adversarial negotiator, our first instinct is to fight back. In reality, however, this is the time to take a deep breath and remain calm. Taking a deep breath releases oxygen to the brain, delaying your fight or flight response and lowering your blood pressure and this is important so you can take time to think. If you let your emotions get the best of you, you might end up making the situation worse. Rather, take a deep breath and count to 10 before moving any further. 

Acknowledge Their Viewpoint

Even if you completely disagree with the other person, there is a lot of power in acknowledging their feelings. Really listen to what they have to say and let them know you hear them. Validate their feelings by letting them know you are listening and that you respect and value their position. One of the most common reasons why people are difficult is because they simply don’t feel heard. A great way to do this is by asking them some open-ended questions such as, “Tell me more about why this is important to you” or “Can you tell me more about what is upsetting you?” Often just asking a few questions and allowing them to share their feelings can diffuse the situation and create an atmosphere of collaboration instead of conflict. 

Don’t Lose Focus on Why You are There

It’s easy to get lost in the chaos of the situation but don’t lose sight of why you are there. Remain focused on your objectives and don’t let bullying tactics or aggressive behaviors get you off track. At this point, you want to transfer the focus to a different issue and reframe the discussion around your shared interests. Remind the other party that you are there to find a solution that is beneficial to both parties. 

Offer Mutually Beneficial Alternatives

In many cases, the secret to a successful negotiation is the ability to think creatively about how to find a collaborative solution. This is where preparation comes into play. Prior to the negotiation, you should have gathered as much information as possible about what is motivating the other party and what problems they are looking to solve. You need to come to the negotiation prepared to suggest mutually beneficial solutions. Be prepared to be flexible and be willing to consider alternative solutions.

Be Assertive

When you are dealing with a tough negotiator, sometimes you need to show that you are just as tough. You should always be courteous and respectful, but that doesn’t mean you have to let others walk all over you. All too often these tough negotiators feel like they can bully you to take control, but as soon as you let them know that you will not accept that, it can be a game changer. You could say something like, “I am here to work with you but your language and behavior are not acceptable. You are free to do business with someone else but as long as you are dealing with me, I expect to be shown the same respect that I show you.” Don’t be afraid to stand up for yourself and never subject yourself to someone else’s verbal abuse or bullying tactics.

There are several ways to settle a dispute between two parties. Many contracts contain “dispute resolution” provisions regarding how a dispute should be settled. For instance, some contracts state that the parties must mediate a dispute before litigation or arbitration. Because these provisions are common in many negotiated agreements, it’s important to understand the difference between them. While all three are designed for two parties to reach an agreement, they each involve different methods, strategies, and practices for reaching such agreements. If you find yourself in need of settling a dispute, you might be wondering which method is best for you. Here we will examine each of these types of dispute resolution and the differences between them. 

Negotiation

Negotiation is an informal process by which two parties settle differences. In a negotiation, both parties aim to achieve the best possible outcome for their position. However, this is commonly achieved through the principles of fairness whereas both parties seek mutual benefits and strive to maintain a strong and productive relationship. Negotiations are reached through discussions between the two parties without the presence of a third party. It is the most informal type of dispute resolution and is a simple alternative to court action and litigation. The advantages of negotiation are that it is less costly and less time-consuming than other types of dispute resolution and decisions are made only by the involved parties. 

Arbitration

Arbitration is a form of private dispute resolution. If two parties cannot successfully resolve a dispute, they may seek the help of a third party. Unlike a mediator, arbitrators typically have legal training and they have the authority to make decisions and impose determinations that are binding on the parties. The arbitrator is agreed upon by the parties and is often chosen on the basis of substantive expertise. Generally, arbitrators are retired judges or experienced attorneys who conduct the proceedings much like a court trial but without the time and expense of an actual trial. The advantages of arbitration are that it is faster and more productive than negotiation and less expensive than litigation. 

Litigation

Litigation is a term used to describe a formal dispute resolution that involves a court trial. Litigation involves handling a dispute in a court of law in order to enforce a particular right. During a litigation, the judge makes the final decisions for the parties unless a settlement is reached before trial. It begins the moment one party hires a lawyer to enforce or defend his or her legal rights. There are several steps in the litigation process and it can take much longer than other types of dispute resolution. It is also more costly, as there are costs involved with court fees, attorney fees, and hiring of expert witnesses. The advantages of litigation are that it forces both parties to cooperate, it is public record, appeals can be made if necessary, and there will definitely be an end result.