Published on June 13th, 20130
How can you negotiate a higher salary? Researchers have discovered an important trick
In the difficult economic environment we face today, many people are wondering how they can negotiate a better salary when you are offered a job. A recent study on the “art of negotiation” conducted by two professors at Columbia Business School could give a helping hand to new employees, and other negotiators to achieve the desired result.
Research conducted by professors Malia Mason and doctoral students Daniel Ames with Alice Lee and Elizabeth Wiley shows that demanding a precise to the last decimal sums offers several advantages in a negotiation rather than a ’round’ lump request.
“We found that there is a big difference between what most people consider to be a good strategy during the negotiations and what research shows that it is indeed a good strategy,” explained Professor Mason. “Negotiators should take into account that in this case, zero sites adds nothing to the negotiating table,” said Mason.
Research published in the Journal of Experimental Social Psychology studied fictitious dialogue between 1,254 negotiators.
Negotiators were distributed scenarios everyday life, such as the purchase of jewelry or selling a second hand car. Researchers asked study participants to provide first a round sum, and other participants to provide a precise amount, for example $ 5,000 versus $ 5,015.
The research results showed that, overall, people who offer an initial precise price of $ 5,015, were perceived as being more informed about the true value of the object negotiated. This perception has been that people who received precise offers to gave in the negotiation.
Teachers have found that people who make a definite offer fail to give the impression that “have done their homework.” When the person is perceived to be better informed negotiation partner thinks negotiating space is narrower.
To see where real life people make several offers “rounded”, researchers have studied the real estate market. By analyzing real estate website Zillow, teachers have found that the vast majority of prices were “round” only 2% of site members specifically asking price for their home.
“Practical utility of these results - signaling that you are informed by using a precise number - is that you can use this technique in any negotiation situation to suggest that you’ve done your homework,” concluded Professor Mason.
Source: University Herald