importance of negotiation in business
What is the Importance of Negotiation in Business?
The importance of negotiation in business can’t be overestimated.
What is the importance of negotiation in business? As the starting point from which all commercial transactions occur, from purchasing equipment to setting salaries, negotiation in business is an essential skill no matter what field a negotiator finds herself in. Using an objective standard can strengthen your proposal and eliminate emotional bias.
However, we sometimes overlook the importance of negotiation in business, because we don’t know what might be possible. In addition, the other party (such as a boss who hasn’t given you a raise in two years) may appear to have no incentives to negotiate with you, leaving it up to you to start the conversation.
In fact, the topic of salary is one of the areas where the importance of negotiation in business is especially noticeable. For a new employee, successfully negotiating a salary offer up by $5,000 could make a huge difference over the course of her career. A 25-year-old employee who enters the job market at $55,000 will earn about $634,000 more over the course of a 40-year career (assuming annual 5% raises) than an employee who starts out at $50,000.
Remember, though, in salary negotiations, the best negotiators share information and ask questions. The more information you can provide about what you value (without revealing your bottom line), the better equipped you and the other party will be to identify new issues to discuss.
Discover how to refine your negotiation skills with this free special report, Salary Negotiations: How to Negotiate Salary: Learn the Best Techniques to Help You Manage the Most Difficult Salary Negotiations and What You Need to Know When Asking for a Raise, from Harvard Law School.
We will send you a download link to your copy of the report and notify you by email when we post new business negotiation advice and information on how to build a winning team to our website.
The following items are tagged importance of negotiation in business: