When the other party says no to your offer your most powerful response is simply to ask Why or Why Not. – with sincere curiosity.
Negotiation Blog - Nibble
Negotiation Blog
Negotiating Salary: Tactics, Blunders or Best Negotiating Practices - Part III
By Thomas Wood
Let’s magnify the various moves Bill and Jen made in their salary negotiation that my colleague explored in previous blogs Part I and Part II. They reached a deal, but was it to their mutual satisfaction? We’ll categorize the moves as Tactics, Blunders and Best Negotiating Practices (BNPs). Do you agree?
- Negotiating Tactics – moves made for short term advantage that risk losing credibility or trust;
- Negotiating Blunders – moves or approaches that fail to achieve their objective or any other positive outcome; and
- Best Negotiating Practices (BNP) – skills, strategies and behaviors that are designed to create and capture value in negotiations.
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Tactic, Blunder or BNP?
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Move
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Response & Impact
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Blunder
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Bill relied on this part-time position and didn’t have a Plan B – other interviews or networking
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Bill’s failure to continue to build his BATNAs (his Plan Bs) puts him at a disadvantage
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BNP
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Bill prepares an opening offer and support
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He is ready when Jen asks
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Tactic
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Jen ignores Bill at first to make him feel unimportant
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It works mildly, but Bill’s preparation keeps him confident
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Blunder
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Jill opens the conversation without any rapport building or excitement about Bill joining the organization
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Jen misses the opportunity to build an alliance with Bill, which will make it more difficult for her to learn what matters to him. She also risks him deciding against the job.
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BNP
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Jen asks Bill what he wants
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Hearing from Bill informs Jen up front if this conversation is worth her time. But it did come with the risk that Bill would anchor Jen by opening first.
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BNP
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Bill opens with his prepared opening offer of $127K.
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Great opening offer – high, but justifiable, and therefore credible
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Blunder
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Jen says “Absolutely not” to Bill’s opening, which is the same as saying “No.”
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Saying the word “No” or a similar negative response shuts down conversation
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BNP
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Jen opens with her opening offer of $78
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Jen’s opening seems appropriate – she starts low but within a justifiable range
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BNP
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Bill asks “Why?”
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Always a great probe, when said with sincere curiosity and not as an attack. Jen is so far from Bill’s preferred salary that he can only benefit from more information.
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Blunder
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Bill doesn’t wait for Jen’s answer. He starts defending his stature.
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Jen is unfazed because Bill isn’t engaging her – he’s presenting to her. Bill is waiting too long to start asking questions – the best way to engage his counterpart.
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BNP
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Finally Bill realizes that he is not convincing Jen, and starts asking lots of engaging questions.
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You can’t probe too much!
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BNP
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Bill next asks for Jen’s advice as to what he needs to succeed in this job.
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Great open-ended question. Engaging the other side is critical. Jen’s inclination now is to help Bill, rather than to win against him.
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BNP
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Bill asks Jen to reconsider the salary given the information they have discussed about his background and fit for the position.
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Bill needs Jen to move a lot, so his open request is a good strategy. He’s giving her a way to save face if she is convinced that his salary can go higher.
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BNP
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Jen makes a huge move from $73 to $103K.
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Jen’s first move is big, but she saves face by having reconsidered the expertise required for the job and Bill’s fit for the position.
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Blunder
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Bill seems inclined to accept the offer.
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Bill could have asked more questions about the new salary range, and further built the relationship. Jen probably had more to give. But Bill lacked confidence due to his non-existent BATNA (plan B).
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Tactic
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Bill asks about getting an alternative work schedule given the lower salary than what he had anticipated.
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At least Bill asked for something to justify why he would move off his opening of $127K – the alternative work schedule. It was a “nibble,” but because he knew Jen could give it, there was little risk to the relationship in employing this tactic.
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