Which is worse: Negotiation failure or failing to negotiate?

I recently traveled to Australia for work, visiting an open-air market for some family souvenirs. Now, an Australian market is not an Indian or Turkish market—not a place where haggling is necessary or necessarily expected. So I suspected going in that any attempts at negotiation would not be particularly fruitful. And I could’ve decided to abandon negotiation accordingly.

But being the author of Life’s Negotiable, I decided to try it anyway. As expected, my attempts to negotiate were met with limited success. Ironically and perhaps confusingly, though, they also highlighted three reasons why the greater failure would’ve been a failure to negotiate at all. And herein is a lesson that can make life negotiable: The biggest negotiation failure is a failure to negotiate.

What in the world could I mean? Consider the rest of the story. I set out in pursuit of three souvenirs: two stuffed animals and a wine holder. Along the road to the negotiation failure described in the third point below, I jotted down three reasons why failing to negotiate would’ve been the greater failure. If you don’t negotiate, you don’t:

  1. Learn about the market. My first and most important negotiation strategy was to walk around the market and compare the various vendors’ prices and selection. Having done so, I learned that certain vendors were selling the items in the question for an attractive price but also selling…how shall we put this…junk. And, looking closer at these vendors’ stuffed animals and wine holders, I learned that they too were…how shall we put this…junk. Design flaws and manufacturing errors galore—and not even from Australia. At least for these products, the rock-bottom prices were too good to be true, I learned.
  2. Learn about the item in question: In the process of walking around the marketplace, I also learned some interesting things about the products under consideration. For example, I learned that the wine holders in this market (at least the ones from the non-junk vendors) are each hand-painted with a unique pattern and color palette signifying a specific set of thoughts and emotions—nice sentiments like serenity, peace, and courage. Since I knew I wanted one with olive green and maroonish-brown, I made sure to note and convey the meaning of those colors upon delivery, which definitely increased the impact of the gift.
  3. Find opportunities to sweeten the deal: Having eliminated the junk vendors and understood the colors, I ultimately identified a vendor with no junk and some reasonably good deals. In fact, this vendor’s signs indicated that I could get two stuffed animals for a special bulk price of X Australian Dollars. But there was no obvious deal on wine holders, prompting me to ask for an even special-er bulk price for one wine holder and two stuffed animals. “No,” he said, which is why I labeled the whole thing a negotiation failure. But the vendor did inform me that I could get an unadvertised volume discount if I purchased two wine holders. Now, we don’t drink that much wine or have that much room on the kitchen counter, but if we did, this offer could’ve sweetened the deal considerably. So, in combination with the avoidance of poor products and the accumulation of information, I consider this failure productive.

What’s the point? That, at least when it doesn’t take a huge amount of time to negotiate—and often it doesn’t—the only real failure in negotiation is a failure to negotiate. A little lesson from down-under.

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Negotiating the holidays: Five common negotiations in a magical time of year

With the holidays fully upon us, I thought it might be useful to recap some negotiations you’re likely to face amidst the festivities—along with some research-based suggestions for making them negotiable. I’m pretty sure you’ll face at least one of the following negotiations over the next few weeks:

  1. Deciding where to spend the holidays. Many of us will have a robust discussion with our better halves as to where to spend the holidays—and for how long. For some suggestions on avoiding a less-than-festive meltdown in the process, you might want to review this post.
  2. Dealing with annoying seatmates. Many of us will encounter fellow holiday fliers who…how shall we put this…have a slightly different take on in-flight decorum. For some suggestions on keeping the skies friendly, check out this post.
  3. Finding time for family. Many of us will need to physically pry ourselves away from our desks to spend the desired time with family and friends. For some tips on negotiating a reasonable work-life balance when it’s needed most, you might want to review this post.
  4. Counteracting predatory retailers. When purchasing our presents, many of us will encounter amazing deals. Others will encounter “amazing” deals—deals that retailers would love for you to misinterpret as such. To recognize and counteract a particularly pernicious version of this trap, consider the following post and paper.
  5. Giving appropriate and reacting appropriately to gifts. It’s the season of giving and receiving, but many people struggle to devise the appropriate gift or react appropriately when they receive the annual fruitcake. So consider reviewing the following posts on giving and receiving for some insights from the negotiations literature.

And now, here’s ho-ho-hoping your holiday becomes a bit more negotiable.

Did you have a “good negotiation?” Fatigue, not frustration

How do you know you’ve had a good negotiation—you’ve gotten the best deal possible without obliterating the relationship? In the real world, outside the confines of a negotiation class with everyone’s agreement posted for everyone else to see, the truth is: you won’t. You’ll never really know how well you did versus however well you could’ve done. Sure, if you happened to slam-dunk it or bankrupt your company, you’ll probably have a sense. But in most negotiations, whose outcomes lie somewhere in the mushy middle, you’ll always walk away wondering.

So should we all utterly abandon the effort to assess our own negotiations post hoc? Before we go quite so far, let me suggest a simple heuristic that can still offer some clues to your success, thereby making the post-negotiation process negotiable.

The heuristic, surprisingly, is this: Fatigued, not frustrated.

What in the world could I mean? Fundamentally, a “good negotiation” entails sticking to your aspirations, pushing for your interests, and creatively attacking a seemingly intractable set of positions. That’s tiring! If you’ve really done all that, you’ll probably feel quite fatigued—and you should.

But wait, does that mean that the best negotiations are the most unpleasant ones—that we should experience our most successful deal-making as a flurry of frustration? No! Fatigue is far from a synonym for frustration—we can all walk away from social situations feeling sleepy but willing to sleep it off and send a thank-you note. Instead, frustration is probably a sign somebody obliterated the relationship.

But wait #2, why shouldn’t we walk away from our best negotiations feeling happy, wanting to high-five our counterpart and buy them a beer? Because if you feel that way, chances are you folded too quickly and easily relative to your aspirations or interests—or didn’t define them well in the first place.

But wait #3, does all fatigue = a good negotiation and all happiness = a bad negotiation? Of course not. You might feel fatigued because your neighbor’s dog was howling all night or, more germanely, because you just got schooled by a counterpart who totally outsmarted and exhausted you at the same time. And you might feel happy because your neighbor’s dog finally shut up at 10 pm or, more germanely, because you somehow found a magical counterpart who was shockingly amenable to your wildest dreams.

So I’m not suggesting a 1:1 relationship between fatigue and successful negotiation. I’m simply suggesting a heuristic than can help you play Sherlock Holmes on your own post hoc feelings and reactions. So the next time you walk away from a negotiation feeling fatigued, relish the feeling! Or at least entertain the possibility that you performed quite well. But don’t confuse frustration for fatigue and somehow elevate relationship obliteration to a virtue. And don’t assume that overwhelming feelings of joy necessarily flow from the very best deals. They don’t.

Three cheers for fatigue!

Practicing for negotiations: Why not?

We practice meticulously for every important event in our lives. Whether it’s a presentation, a soccer game, or an interview, if we value the outcome, we typically spend some serious time practicing (e.g., by dry-running, scrimmaging, or mock-interviewing).

So it’s curious that most of us devote so little time—approximately none at all—to practicing for our most important negotiations. Perhaps we’ll give some passing thought to our strategy for the car dealer or even use the BRAIN acronym to structure our thinking. But mental preparation is not the same thing as active practicing, and precious few of us will ever consider the latter.

But why??? Do we all consider ourselves so much better at negotiating than presenting, shooting a soccer ball, or detailing our greatest strength? Do we all feel foolish enlisting the help of a make-believe car dealer? Do we not even know where to start?

I honestly don’t know.

Since practice is the only thing that can make negotiations perfect (or at least negotiable), however, I’ll assume it’s the last one and urge you to start here:

Pick a trustworthy friend, perhaps an aspiring thespian. Bring them up to speed on every last aspect of the negotiation and your likely counterpart. Then, actually pretend you’re negotiating, making sure to focus your role-playing on the following topics:

  1. Opening and setting the right tone. As in first dates, the first minute of a negotiation sets the tone for most of the subsequent relationship. Will this be a cooperative or combative discussion? A problem-solving exercise or a cage match? Whatever the tone you intend to set, you’d better practice setting it to follow through when the heat is on.
  2. What you’ll share and won’t. In every negotiation, you’ll have to share certain nuggets of information to get to yes. And you’ll have to avoid a discussion of other topics like the plague—your bottom line for example. You need to practice sharing the former and avoiding the latter tactfully.
  3. Responding to tough questions. Your counterpart may well ask you to share the information you really don’t want to. They may also ask questions that tempt you to lie. You need to hear yourself concocting an answer that doesn’t give away the farm or your ethical (and/or legal) compass.
  4. Rebooting the conversation. At some point, most tough negotiations get mired in a positional debate. “I want X!” “I want Y!” And X is typically the opposite of Y. If you hope to rise above such a debate in real-time, you need a practiced strategy for changing the conversation. A strategic suggestion to take a break or a blue-sky question about an entirely different topic?
  5. Walking away if you have to. It’s kind of like the safety demonstration on the airplane. You really don’t want to think about it and hope you never have to remember it, but you’d better make sure to understand it. If a negotiation disaster sets in and you can’t find a way to best your BATNA, you need a practiced plan for walking away gracefully rather than falling into a tailspin.

In sum, for all the same reasons you play a scrimmage rather than fielding a new soccer team just before the game, we should all practice negotiating rather that discovering our negotiation prowess (or lack thereof) in real-time. If nothing else, consider it an opportunity to indulge your inner thespian.

What’s negotiable? The many negotiable components of a job offer

Shortly after receiving a job offer, many people’s primary impulse is to negotiate the salary. And thus they despair if the effort fails.

But why the despair? Typically because they haven’t read anything like my last post, which assured you of the approximately 43593457938 negotiable components of a job offer.

But that just begs the question: which components? In other words, which aspects of a job offer can typically be negotiated?

Now, no list of negotiable components can ever be complete, especially since there are 43593457938 of them. Nor can any list apply to every particular job. Summer support? Makes sense to an academic (sort of) but virtually no one else. Finally, a long list of negotiable issues certainly does not imply that you should negotiate everything. As always, the best negotiators push for their critical interests but also know when to call it a day.

Still, in the everlasting and never-ending quest to make life negotiable, perhaps a list of the commonly negotiable components of a job offer can help. So here goes an imperfect but hopefully helpful list of the top 10 categories of negotiable topics:

  1. Other monetary issues. Believe it or not, a failure to negotiate salary does not imply an inability to negotiate all monetary issues. Other money-oriented issues like bonuses, moving expenses, and stock options sometimes remain surprisingly negotiable.
  2. Work location. In today’s virtual world, the amount of time you spend in the office, a satellite office, or your home office is often on the table. And unless you live next to the office, it probably should be.
  3. Travel. A closely related issue is travel—namely how much of it you will do and how glamorous the location. For some people, the more the better and any whistle stop will do. For others, even the thought of another security check elicits nausea. It’s important to at least go in knowing which type you are.
  4. Physical conditions. Assuming you’ll have to spend a bunch of time in the office, many organizations have at least a few degrees of freedom with respect to what it will look and feel like. Will you sit in a cavernous corner, thereby withering away in the absence of natural light? Will you work right next to the copier, mishearing your critical phone calls due to the beep of the buttons? Better to surface those issues beforehand.
  5. Job specifics. For lack of a better title, many specifics of the job itself might remain in play after the job offer—in particular, some especially onerous tasks you might not want to complete, especially onerous times you might not want to be on call, or especially onerous committees you might not want to chair. If you think these types of issues are in fact flexible, you could do yourself a favor by mentioning them.
  6. Career progress and evaluation. Any organization worth working for wants you to make progress in your career and attain increasingly challenging goals. And some might be willing to customize your career trajectory and/or evaluation schedule to promote as much. Accelerating your career or evaluating you more frequently, in turn, might well get you to the desired salary faster.
  7. Education, enrichment, and growth. Any organization worth working for also wants you to learn, enrich yourself, and grow. And many may be willing to put their money behind it, particularly by reimbursing your tuition, supporting your conference attendance, and sending you to professional development courses (for example).
  8. Benefits. Despite the glossy and final-looking pamphlet from HR, at least some of the stuff therein (vacation time, leave, health insurance, retirement plan, housing subsidies, etc.) often remains negotiable. If a particular benefit is especially near and dear, it might not hurt to ask.
  9. Supplies. Will this job come with a stapler and that’s about it? Or could you negotiate to throw in a laptop, your own personal printer, and a particularly shiny set of paperclips (for example)? If it saves you from dealing with an unhelpful IT department, walking a half-marathon to the community printer, or buying paperclips yourself, you might just ask.
  10. Start date. The start date is the date on the job posting, right? Well, it could be. But you might also negotiate to start early (thereby earning back some of the salary shortfall) or start late (thereby earning yourself an extended vacation).

In closing, let me reiterate what I said at the beginning: a plethora of negotiable issues is not a license to demand the world on a silver platter, and then some. Doing so could easily get you branded a prima donna, or even someone with a revoked offer. But I do hope that knowing the 43593457938 negotiable components of a job offer at least calms your despair, boosts your confidence, and earns you a shiny set of paperclips.

Five responses to “equity concerns” in job negotiations

You’re lucky enough to receive a job offer. But it doesn’t meet your expectations, so you muster the courage to counter. And then you get the response that every applicant dreads—the one that immediately diffuses your counter with ‘equity concerns.’ In other words, a response indicating that the employer can’t meet your demands because they would create an inequity within the organization.

Sound familiar? We’ve all heard this phrase or something very much like it. Is there anything at all that you can do to make this nettlesome statement negotiable? It’s a nettlesome statement indeed, but the following five strategies might help:

  1. Mention your knowledge beforehand: Sometimes an employer really can’t meet your demands for equity reasons. But other times, you know full well that other employees in the organization are making exactly what you just requested. In that situation, I’d suggest mentioning your knowledge at the same time as your counteroffer (before their nettlesome response). A difficult admission perhaps, but better than trapping the employer in a lie (or making them feel that way).
  2. Negotiate something else: Salary is one of 14398349813274 things that can be negotiated in a job offer. And, believe it or not, the 14398349813274 things often do more for your satisfaction, at least in combination. And, luckily enough, many of the 14398349813274 things—especially the qualitative ones like access to natural light or virtual work—are somehow immune from ‘equity concerns.’ So even if the equity concerns surrounding salary are real, don’t give up.
  3. Restructure the monetary request: Ok, so they won’t pay $Y. They’ll only pay $X, which is $Z less. And it’s apparently because is $X is the going rate. But would they pay $X plus a performance-based bonus of $Z if you attain target ABC? Again, performance-based pay may somehow escape the grasp of ‘equity concerns.’
  4. Deconstruct the equity equation: Equity is defined as the ratio of inputs to outputs. Employers who cite ‘equity concerns’ don’t always acknowledge that. They focus only on outputs in the form of the standard salary, not on any notable skills, degrees, or certifications (for example) that make your inputs particularly high. Since the ratio between particularly high inputs and standard outputs immediately becomes inequitable, reminding yourself and the employer of the whole equation (uber-carefully and professionally) may help.
  5. Develop and allude to an alternative: The best defense against a meagre offer, albeit the hardest to execute, is to develop a viable plan B—an attractive alternative offer or option. Since you’ll have to exercise your alternatives anyway if the stingy employer demurs, you’d better at least know what they are. Better yet is to have an alternative that you’re actually eager to execute, and thus willing to mention if the ‘equity concerns’ persist despite your best efforts.

In sum, ‘equity concerns’ create a real challenge for any aspiring job negotiator. But a thoughtful strategy can make even this nettlesome tactic negotiable.

Curtailing the never-ending meeting: The deadline effect

Meetings: the great vortex that swallows most of our organizational lives. Is there anything – anything at all – we can do to make them negotiable?

Luckily there are several tactics available. But here let me focus on a particularly helpful nugget of wisdom from the negotiation literature: the deadline effect.

The deadline effect in negotiation essentially, and interestingly, shows that deadlines are not particularly detrimental to those who face them. But wait, don’t we all feel pressured when negotiating with our backs up against a hard stop? Yes, but so too does our counterpart. And that’s the essence of the deadline effect: deadlines focus everyone’s mind on business and can thus be quite beneficial to all negotiators concerned.

It’s not hard to see how the same principle might apply to meetings. We often have the latitude to schedule meetings at various points in the day. Should we schedule them in the middle of a big block of free time? Or should we schedule them right before another meeting? Should we schedule them for longer than needed, just in case, or even leave the timing open-ended? Or should we predetermine that they need to conclude by a specific time, and be quite specific with ourselves as well as the other parties involved about what the time is?

If you want to make meetings negotiable, leveraging the deadline effect is a good place to start: Consider scheduling your meetings right up against your other meetings, and be perfectly clear with yourself and your counterparts as to the existence of a firm deadline in the form of a subsequent meeting. Doing so might make you feel harried and could, potentially, make your long-winded colleagues feel rushed. But chances are it’ll make the bulk of your colleagues feel grateful, as they too will discover more minutes in the day.

In short, deadlines, in organizations, are your friend! Treat them that way, and even meetings can become negotiable.