Negotiations are important parts of our lives, whether we are buying a house, asking for a higher salary, or trying to convince your family to go on vacation.
Today let’s take a look at negotiations. We’ll discuss different types of negotiation, some of the key negotiation theories, and think about how we can negotiate in English!
Listen Here!
Apple Podcasts
Spotify
YouTubeInteractive Transcript!
You Can Now Read and Listen at the Same Time With an Interactive Transcript!
Vocabulary
- Negotiate (Verb): To discuss something in order to reach an agreement.
- They had to negotiate the terms of the contract before signing it.
- Terms (Noun): The conditions under which an agreement is made.
- The terms of the deal were carefully reviewed by both parties.
- Offer (Noun): A proposal presented for acceptance or rejection.
- She made an offer to buy the car for $10,000.
- Contract (Noun): A written or spoken agreement that is intended to be enforceable by law.
- The lawyer reviewed the contract before the client signed it.
- Party (Noun): The people or groups involved in a legal agreement or negotiation.
- Each party to the contract must fulfil their obligations.
- Dialogue (Noun): A conversation between two or more people, especially as a feature of negotiation.
- The dialogue between the two companies resulted in a successful partnership.
- Compromise (Noun): An agreement or settlement of a dispute that is reached by each side making concessions.
- After hours of negotiation, they finally reached a compromise.
Negotiations and Negotiating…
Negotiation is an essential skill in both our professional and personal lives.
For some of you, it could be a major part of your job. There will be listeners of this podcast who are lawyers responsible for negotiating legal settlements and contract details.
Some of you may work in business, and be in charge of negotiating prices for transactions and services that your company wants or offers.
Even if negotiating is not a specific part of your work, it is still something important for all professionals. Maybe you are negotiating a pay rise with your company, or the starting pay for a new job, or the amount of vacation in your work contract.
You could be self-employed like I am, and have to negotiate the price for a podcast sponsorship with a company or how much to pay a freelancer to do a few hours work for you each week.
Even in personal situations, negotiating with friends and family is still a common occurrence.
Reaching the higher levels of English, especially business English, will also mean learning how to “negotiate” in English.
What Does “Negotiate” Mean?
Let’s start with a few definitions.
To “negotiate” is a verb that means to discuss something, often formally, in order to reach an agreement. “Negotiation” is the noun form of this, referring specifically to the dialogue between people trying to reach an agreement.
This process often involves dialogue or discussions between two or more parties (meaning sides of the negotiation) who are seeking to resolve differences or reach a beneficial decision.
In other words, it is a process that involved talking between two or more sides to settle disagreements or make decisions that benefit everyone involved.
Imagine you’re starting a new job and discussing your salary with your future employer. You and your employer will negotiate to agree on a salary that satisfies both of you. You obviously want the highest salary possible with the best benefits, while your employer may have a budget and company policies to consider. You two can “negotiate” to find a solution you are both happy with!
I’m a self-employed podcaster. I often need to negotiate contracts with companies that want to sponsor or partner with Thinking in English. Before signing the contract, I need to negotiate the timeline, the payment terms including the amount, payment methods, and when I’m paid, and ensure what the company expects me to deliver.
For example, in a recent negotiation we had different ideas on when to publish the episode (I only publish episodes on Mondays, and they wanted an episode in a timeframe that didn’t include a Monday). By negotiating, I convinced them to allow me to publish on a Monday with an agreement I would also share something on my website!
When Do You Need to Negotiate?
Let’s take a more detailed look at when you might need to negotiate and the types of negotiations.
In your personal life, there are various different situations in which negotiations are important.
When you are buying a house or a car or another big purchase. You will need to negotiate the prices, terms, and fees to try and get a better deal.
Negotiating with friends or family can help resolve conflicts and disagreements.
Even in less serious situations, like deciding on vacation plans or where to eat dinner, family members might negotiate to decide on things like the budget.
If you are a student right now, negotiation skills can also be useful.
If you need more time to complete an assignment, you might negotiate with your professor to extend the deadline.
When working on group projects, students often negotiate roles and responsibilities to ensure fair distribution of work and collaboration.
And, of course, business situations are full of negotiations, whether it is contract negotiations, forming business partnerships, or negotiating a salary.
Types of Negotiation
Actually, there are different types of negotiation
A distributive negotiation is sometimes described as a “win-lose” negotiation. It involves dividing a fixed amount of resources, such as money, time, or goods. Importantly, in this situation if you get what you want (you win) the other side loses something they want.
An example is negotiating the price of a product. When buying a car, you negotiate with the dealer to lower the price. Every dollar you save is a dollar the dealer does not get.
The focus of a distributive negotiation is maximising your own benefits. The aim is claim as much value as possible from the resources available.
On the other hand, there are integrative negotiations. An integrative negotiation is a “win-win” negotiation. The goal is to find agreements that benefit everyone involved.
For example, two companies negotiate a partnership where they combine their resources and expertise to create a new product. Both companies benefit from the increased market reach and shared profits.
We could also throw in multiparty negotiations as a type of negotiation. Most negotiations involve two sides, but some can include many different sides. For example, the attempts to negotiate international agreements on climate change involve negotiations between hundreds of countries at the same time.
Negotiation Theories
In this episode, I’m going to give you some advice specific for non-native English speakers when negotiating. First though, as this is Thinking in English, I thought I’d briefly introduce three theories related to negotiating that might be interesting and useful to all of you!
Principled Negotiation (Harvard Negotiation Project)
Principled Negotiation is a method developed and used by the Harvard Negotiation Project, a research group that explores negotiation and conflict resolution.
The key idea is to focus on interests, not positions.
Positions are the specific outcomes each party wants (e.g., “I want a higher salary”). Interests are the underlying reasons or needs behind those positions (e.g., “My experience and qualifications deserve a better salary”).
By focusing on interests, you can discover the true needs of both parties and find solutions that address those needs.
Another part of this is separating people from the problem. Emotions, egos, and misunderstandings can complicate negotiations, so you should try to address the negotiation without making it personal.
One of the best ways to do this is to base the negotiation on objective standards, such as market value, legal precedent, or expert opinions. This reduces bias and allows for a fairer and more transparent negotiation process.
ZOPA (Zone of Possible Agreement)
Imagine you are negotiating the price of a new car.
ZOPA is the overlap between the minimum the seller is willing to accept and the maximum that you are willing to pay. If there is a ZOPA, there’s potential for a deal. If there isn’t a ZOPA, the negotiation may fail unless one side makes changes to their expectations.
Before entering a negotiation, you should clearly understand your minimum acceptable outcome and estimate the other party’s range. If you are negotiating a salary, you should know what you ideally want, your minimum, and what you think the company is going to offer.
During the negotiation, you can always expand the ZOPA by offering additional things. Your minimum salary expectation might be $50,000 dollars, and the company’s maximum offer might be $48,000. There is no ZOPA (there is no overlaps).
However, the company might offer you remote working 3 days a week, or 10 extra days of paid vacation, or free lunch, or a company car, or company health insurance. These extra things might make you willing to consider a slightly lower salary, and expand the ZOPA.
Setting boundaries, and knowing your limits, is really important when negotiating.
Anchoring Effect
I visited Malaysia when I was 19, and I witnessed a first-hand example of why you should be aware of the anchoring effect.
We were in a market, shopping for souvenirs, and a friend saw a key ring he liked. I had bought a very similar one the day before, and it cost me about $1 after I negotiated the price. I asked how much the keyring was, the seller told me a price that was about $2. This anchored the price at $2. I offered $1, and they accepted.
My friend, however, made an offer first. He offered $3 straightaway, before asking what the seller was charging. This anchored the price at $3. The seller then said $5, and my friend eventually paid $4.
The first offer or proposal in a negotiation serves as an anchor, influencing the subsequent discussion. This initial offer can set the tone and range of the entire negotiation.
If you set a high anchor, the other party is likely to adjust their expectations upward, even if they eventually negotiate the price down.
You shouldn’t let the initial anchor influence your perception of a fair deal or change what you were willing to accept (it is why you should set boundaries like in ZOPA). You should reframe the negotiation by introducing new information or changing the terms.
Anchoring is especially useful in price negotiations, such as in real estate or salary discussions.
Tips and Advice (for Non-Native English Speakers)
Negotiating in a non-native language can be challenging, but with the right strategies you can learn to negotiate!
One of the key things to try is language preparation.
Before entering a negotiation, you could familiarise yourself with essential negotiation-related vocabulary and phrases.
Practice using terms like “counteroffer,” “mutual agreement,” “concessions,” and “compromise” in sentences. Depending on what the negotiation is about (salary, buying a car etc), learn some of the key vocabulary related to that topic.
Rehearse common negotiation scenarios with a language partner, tutor, or even on your own. Role-play different parts of the negotiation, such as opening statements, counteroffers, and closing the deal.
Before a negotiation, general preparation is important.
Research and gather information so that you know what you are negotiating over. Know the value of what you’re negotiating over – whether that is the market value of an expensive watch or the average salary for an accountant.
This is especially important if you are looking for an international job. Salaries vary dramatically between countries, so making sure you know what is realistic is important!
During a negotiation, you should practice some effective communication techniques.
For example, practice active listening. Pay close attention to what the other party is saying. Show that you are listening by nodding, summarizing their points, and asking clarifying questions.
Asking open-ended questions is also important. By asking open ended questions like “Can you tell me more about your priorities?” or “What are your main concerns?” you can encourage the other side to share more information.
Many of us rely on closed questions, questions that receive yes/no answers, but open-ended questions can benefit us more in negotiations.
There are also some great persuasion techniques you can try.
Support your arguments with facts, data, and logical reasoning. Present evidence that backs up your position and shows the benefits of your proposal. It is much easier for you to ask for a higher salary if you can show that the average salary for your position is also higher.
At the same time, understand the other sides position. Be willing to make small concessions to encourage the other party to reciprocate. Show goodwill and a willingness to collaborate.
As a non-native speaker, don’t be afraid to ask for repetition or clarification if you don’t understand. Use phrases like “Could you please clarify that?” or “I’m sorry, I didn’t quite catch that.”
Hopefully by applying these tips and understanding some of the theories behind negotiation, you can become a more effective negotiator and learn how to negotiate in English!
Final Thought
Negotiation is an important skill that has relevance to both our professional and personal lives. Whether you’re a lawyer, a business professional, or a normal person, learning negotiation skills can really help you communicate and achieve better outcomes.
By understanding key negotiation theories and preparing effectively, especially when negotiating in a non-native language, you can approach discussions with confidence!
What do you think? What was the last thing you negotiated over?
Extended Vocabulary List
Become a Patreon Subscriber to Access the Extended Vocabulary List!
Vocabulary Games and Activities!
Learn and practice vocabulary from this Thinking in English episode.
Practice using 5 different study games and activities – including writing, listening, and memorisation techniques!
Flashcards
Matching Game
Learning Game
Test Yourself
Listening and Spelling
Do you want to Think in English?
I’m so excited that you found my blog and podcast!! If you don’t want to miss an article or an episode, you can subscribe to my page!
