Managing stress in Negotiations

Difficult negotiations imply stress.

Stress can be understood as the personal feeling of being overwhelmed by the demands of a particular situation. It arises when an individual believes these demands exceed their ability to cope or manage effectively. This perception can vary significantly among people, even in similar circumstances, underscoring stress’s unique and subjective nature.¹

Research underlines that individuals respond to stress in diverse ways. While some argue that a higher stress level positively enhances their performance, others believe it negatively affects them. The former group may experience what is known as eustress, a type of stress that can motivate and enhance productivity. Conversely, those who find stress harmful may endure distress, which negatively impacts their performance and overall well-being.²

Understanding these variations is essential, particularly in high-stakes situations like negotiations, where managing stress effectively can significantly influence the outcome. Research highlights that the impact of stress on negotiation outcomes largely depends on how stress is perceived. When stress is seen as a motivating force or a source of excitement, it can improve results by maintaining focus and improving performance.³ In contrast, when stress is perceived as anxiety, it can have detrimental effects, increasing nervousness and reducing confidence, which often leads to less favorable outcomes.⁴ The critical factor in determining whether stress will be beneficial or harmful is the individual’s perception of the negotiation. Those who view the negotiation as a challenge typically experience less detrimental effects and achieve better results than those who perceive it as a threat.^1;5

At the Schranner Negotiation Institute, we observe that stress, when managed properly, can be a powerful tool for successful negotiations. A moderate amount of stress can enhance alertness and focus, enabling better performance. Conversely, entering negotiations with less stress might prevent you from fully engaging in the negotiation process, while excessive stress can lead to paralysis and undermine your effectiveness.

So, how can you use stress to your advantage in negotiations?

So, how can you use stress to your advantage in negotiations?

1. Acknowledge Stress: It is expected to experience stress before a negotiation performance.⁶ The key is to manage it effectively. By being aware of your stress responses, you can develop strategies to handle them constructively.
2. Leverage Stress: View stress as an opportunity to enhance your performance. When embraced positively, stress can motivate you to perform at your best during negotiations.
3. Manage Excessive Stress: If stress becomes overwhelming, take a moment to step away from the situation. This pause can help you avoid getting caught in a stress spiral.

Apply these strategies in your next negotiation to manage your stress level.

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References:

¹ O’Connor, K. M., Arnold, J. A., & Maurizio, A. M. 2010. The prospect of negotiating: Stress, cognitive appraisal, and performance. Journal of Experimental Social Psychology, 46(5): 729–735.

² Bienertova‐Vasku, J., Lenart, P., & Scheringer, M. 2020. Eustress and distress: neither good nor bad, but rather the same?. BioEssays, 42(7): 1900238.

³ Brown, A. D., & Curhan, J. R. 2013. The polarizing effect of arousal on negotiation. Psychological Science, 24(10): 1928–1935.

⁴ Brooks, A. W., & Schweitzer, M. E. 2011. Can Nervous Nelly negotiate? How anxiety causes negotiators to make low first offers, exit early, and earn less profit. Organizational Behavior and Human Decision Processes, 115(1): 43–54.

⁵ Brooks, A. W. 2014. Get excited: reappraising pre-performance anxiety as excitement. Journal of Experimental Psychology: General, 143(3): 1144.

⁶ Dickerson, S. S., & Kemeny, M. E. 2004. Acute stressors and cortisol responses: a theoretical integration and synthesis of laboratory research. Psychological bulletin, 130(3): 355–391.