Concessions in Negotiation
What is Concessions in Negotiation?
Concessions in negotiation are compromises or adjustments made by one or more parties to reach an agreement. Each party agrees to give up something they value to satisfy the other party's needs or demands. Concessions are strategic and often used to facilitate a deal where each side finds acceptable middle ground.
Concessions can help build trust and foster a cooperative atmosphere, which makes it easier to resolve conflicts and finalise negotiations. Typically, the process of offering concessions is reciprocal, with each side expecting something in return to balance the give-and-take dynamic essential for successful outcomes.
Example of Concessions in Negotiation
Imagine two colleagues negotiating over workload. One might offer to take on extra tasks this month if the other agrees to cover for them while they're on holiday next month. This way, both parties feel the workload is shared fairly over time.
Another example involves a salary negotiation. An employee might request a higher starting salary, but the employer, unable to meet the full increase, might offer additional annual leave days or a signing bonus as a concession. This allows both the employer and the employee to feel satisfied with the agreement.
In both examples, concessions help to balance the negotiations, leading to mutually beneficial agreements.
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