Use Objective Standards

In order to convince the other party that what you are asking for is fair and reasonable, try to use objective standards whenever possible. If you are in the negotiation process with a prospective candidate, you will want to pay her as little as possible and she will want to earn as much as possible. Rather than feeling that the other party is trying to rip you off and haggling back and forth, the easiest solution is to use an independent objective standard. Independent objective standards may include market value, replacement cost, depreciated book value, competitive prices, precedents for similar cases, scientific judgment, professional standards, moral or ethical standards, or government standards. You can also speak to experts in the field to learn what is considered fair market value for whatever goods or services the negotiation is about. Using objective standards can reduce the amount of time it takes to conclude a negotiation because they are more likely to be accepted by the other party as a fair and reasonable offer.

If the other party offers to pay or accept a specific amount, always ask how they arrived at that specific number. Did they use an objective standard? If so, which one? If not, suggest one be used in order to eliminate bias and be fair, and to create a win-win situation for both parties. If they are unable to provide you with details for how they arrived at that amount and refuse to budge, you should seriously consider to agree to disagree and not negotiate. If, however, the price seems fair and is based on a trustworthy objective standard, be willing to be open-minded when confronted with a reasonable offer. Think about the following example:

Doctor: I am pleased to tell you that I met with everyone you in terviewed with and would like to extend you an offer of $45,000 per year as your salary.

Employee: How did you arrive at that amount exactly?


Doctor: Well, we think it is a very fair salary. According to our human resources department, the average salary paid to pediatric nurses with your level of experience in this city is $43,789. Not only do we pay slightly more than average, but we also offer additional benefits. While most doctors offer their nurses two weeks of vacation, we would give you three. You would also be able to begin contributing to your 401(k) plan immediately rather than waiting for six months as in many other offices. Additionally, the vast majority of our nurses have been with us for more than 10 years. The average tenure at our office for nurses is 14.5 years. And every year for the past five years, we have been working with a market research firm to conduct an employee satisfaction survey. According to last year’s results, 92 percent of our employees are either satisfied or very satisfied with their jobs, 94 percent with the benefits, and 90 percent with their bosses. We really value our employees here and I think they recognize that.

Employee: Sounds like once nurses are hired at your office, they don’t want to work anywhere else.
Doctor: Exactly. We have one of the highest retention rates in the city for nurses.
Employee: Well, now that you explained how happy your employees are, I think I would like to work here as well.
Doctor: I’m glad to hear it. I’ll notify the human resources department and have them send your paperwork by the end of the day. You should receive it by the end of the week.