Mastering Negotiation Styles: Insights for HR and Commercial Negotiations

In my view, the best negotiator is an adaptable and responsive negotiator who knows how to read the room. It’s not just about sticking to one approach or being rigid in your style; it’s about understanding the dynamics at play and adjusting your strategy accordingly. Whether you're in a boardroom or handling a workplace dispute, the ability to pivot between different negotiation styles as the situation demands is what sets truly effective negotiators apart. We each have our default negotiation styles.

Mine has always been to emphasise the relationship over the outcome, often to my own detriment. In some cases, I avoid directly raising concerns, but at the same time I am making these decisions based on my thoughts on how the other side is likely to respond, and what approach is likely to get me closer to my longer-term objectives.

What Are the Core Negotiation Styles?

When we enter contract negotiations, our primary goal is to secure an outcome that meets our objectives. Knowing exactly what that outcome looks like is crucial as we develop our strategy to achieve it. For instance, if your aim is to close a sale with a new customer, you’ll likely focus on approaches that foster strong relationships.

However, if you need to terminate a non-performing supplier, the relationship takes a backseat, and the priority becomes achieving a satisfactory result.

The five core negotiation styles, adapted from the Thomas-Kilmann Conflict Resolution Model, include:

1. Accommodating: Prioritises the relationship between the parties, aiming to satisfy the other party’s needs while minimising conflict.

2. Avoiding: Prefers to stay neutral and avoid creating tension, often deferring responsibility to others.

3. Collaborating: Focuses on joint problem-solving to create win-win scenarios, often leading to innovative solutions.

4. Competing: Results-oriented, with a focus on securing the best outcome for oneself, often with little regard for the relationship with the other party.

5. Compromising: Seeks to find a middle ground that is mutually beneficial, where each party makes sacrifices.

How Can You Apply These Styles in HR and Commercial Negotiations?

Understanding these negotiation styles becomes particularly insightful when you start recognising them in your day-to-day negotiations, whether in HR practice or commercial settings.

• Accommodating: In HR, this style often comes into play when negotiating with employees or internal stakeholders. For instance, when resolving a workplace conflict, you might accommodate an employee’s request to maintain harmony within the team. In commercial negotiations, you might accommodate a counter-party’s position to resolve a contentious issue, especially if the long-term relationship is more valuable than the specific terms at hand.
  

• Avoiding: This style can be useful in HR when deferring to other experts for deeper analysis, such as when complex legal or compliance issues arise. In commercial settings, avoidance might occur if a counter-party is particularly inflexible, and you prefer to keep things neutral to avoid escalating the situation.
  

• Collaborating: HR professionals often use this style when developing policies or resolving disputes that require creative solutions. For example, collaborating with various departments to create a flexible work arrangement policy that meets everyone’s needs. In commercial negotiations, collaboration is ideal when working on custom solutions or developing long-term partnerships. It’s about finding that win-win solution that benefits all parties.
  

• Competing: This style is sometimes necessary in both HR and commercial negotiations, particularly when there are non-negotiable elements, like adherence to strict compliance requirements in HR or critical contract clauses in commercial deals. However, it’s important to be cautious, as an overly competitive approach can strain relationships.
  

• Compromising: In HR, compromising might be the best approach when dealing with workplace disputes where neither party can get everything they want, but a middle ground needs to be found to move forward. In commercial negotiations, compromising is useful when time or resources are limited, and collaboration isn’t feasible, but a resolution is still necessary.

How Do You Respond to Different Negotiation Styles?

In any negotiation, there are always two (or more) parties involved. After you identify your desired negotiation strategy, it’s just as important to determine which style your counterpart is using. This insight helps you decide whether to adjust your style to achieve the desired outcome.

• Accommodating: If you’ve decided to accommodate a counterparty’s position, don’t hesitate to highlight this concession, especially when it’s time to stand firm on other issues. In HR, you might use this tactic when managing employee expectations during negotiations for benefits or workplace conditions.
  

• Avoiding: If an issue is being avoided, make sure it’s appropriately addressed, either by delegating it to the right experts or by approaching the issue directly if necessary. This approach is particularly useful in HR when dealing with sensitive issues that require a delicate touch or in commercial negotiations when avoiding confrontation might be strategic.
  

• Collaborating: Stay open to new solutions and involve subject matter experts in the process. In HR, this might mean collaborating on a new initiative with cross-functional teams. In commercial negotiations, collaboration can lead to more innovative and sustainable agreements.
  

• Competing: Avoid reacting aggressively to a competitive counterparty.

Acknowledge the importance of their position, and if necessary, take a break to reassess. In HR, this style might be used when negotiating terms of redundancy or when enforcing company policies. In commercial settings, use this style sparingly to avoid damaging long-term relationships.

• Compromising: When collaboration isn’t possible, and you’re short on time or resources, compromising might be the best option. However, ensure all areas of conflict are addressed to avoid future issues. In HR, this might mean finding a fair middle ground in salary negotiations, while in commercial settings, it could involve balancing conflicting interests to finalise a deal.

What Are the Key Takeaways?

Negotiation is inherently dynamic and often requires an iterative approach. With well-thought-out strategies, you can plan when to use certain styles to achieve your desired results. Learning these styles not only helps in planning your approach but also in pausing and identifying the best response to a counterparty’s style.

The collaborative style, in particular, is often seen as incorporating the best aspects of other styles, making it especially effective in both HR and commercial negotiations where long-term relationships and strong outcomes are crucial. However, every negotiation style has its advantages and risks, and sometimes one style may be more appropriate than another depending on the situation.

Understanding and mastering these negotiation styles allows you to navigate the complexities of negotiation with greater confidence and effectiveness, ensuring that you not only achieve your desired outcomes but also maintain strong relationships along the way.

If you would like to strengthen negotiation skills in your team, you can read more about my training and workshops.

Q&A

Q: How can I identify my counterpart’s negotiation style? A: Pay attention to their behaviour and responses during the negotiation. Are they more focused on the relationship or the outcome? Do they avoid conflict, or are they more assertive?

Recognising these patterns can help you identify their style and adjust your approach accordingly.

Q: Can I use more than one negotiation style in a single negotiation, especially as a HR officer? A: Absolutely. In fact, being adaptable and responsive is key to successful negotiation. You might start with a collaborative approach and then shift to a more competitive style if the situation demands it. The best negotiators are those who can pivot between styles as needed.

Q: What books can help me improve my negotiation skills? A: Some popular books on negotiation include "Getting to Yes" by Roger Fisher and William Ury, "Never Split the Difference" by Chris Voss, and "The Art of Negotiation" by Michael Wheeler. These books offer valuable insights into different negotiation strategies and how to apply them effectively.

Further Reading:

• "Getting to Yes" by Roger Fisher and William Ury

• "Never Split the Difference" by Chris Voss

•  "The Art of Negotiation" by Michael Wheeler

If you are preparing for a difficult negotiation at work, send me an enquiry and we can talk through the right support.