How do you negotiate one of the most delicate issues of all workplace challenges, the raise? Be specific as it signals that you are better informed.
“What we discovered is there is a big difference in what most people think is a good strategy when negotiating and what research shows is a good strategy,” said Professor Mason. “Negotiators should remember that in this case, zeros really do add nothing to the bargaining table.”
The research, forthcoming in the Journal of Experimental Social Psychology, looks at the two-way flow of communication between 1,254 fictitious negotiators.
The negotiators were placed in everyday scenarios such as buying jewelry or negotiating the sale of a used car. Some people were asked to make an opening offer using a rounded-off dollar amount, while other people were asked to use a precise dollar amount; lets say for example $5,000 vs. $5,015.
The results showed that overall, people making an offer using a precise dollar amount such as $5,015 versus a rounded-off dollar amount such as $5,000 were perceived to be more informed about the true value of the offer being negotiated. This perception, in turn, led precise-offer recipients to concede more value to their counterpart.
An interview with Professor Malia Mason was also featured on NPR All Things Considered.