How do Swiss executives negotiate?

The majority of Swiss executives are confident negotiators, at least when it comes to assessing their own negotiation performance. This sums up the findings of the study "How do Swiss executives negotiate?", which was presented to around 100 invited guests at an event at the Kongresshaus Zurich on Thursday, May 25, 2023.

Careful preparation for negotiations in scenarios crucial

As part of the study, which was conducted for the first time, around 360 Swiss managers were surveyed via an online survey in the fall of 2022. A prerequisite for participation was that negotiation is a significant part of the professional scope of duties. The respondents come from different industries and have on average more than 13 years of negotiation experience. The representative study offers the first comprehensive insight into negotiation practice in Switzerland and provides an empirical basis for further research and initiatives in the field of law and negotiation management.

The results show that, from the perspective of Swiss managers, good negotiation results require intensive negotiation preparation. More than 90 percent of respondents say that negotiation skills are important for their careers. However, more than half of the respondents also believe that many negotiators overestimate their negotiation skills. In addition, only about half of the Swiss executives had already been trained in negotiation skills during their training or studies. Differences can be seen in particular with regard to age and industry: The younger the respondents, the more likely negotiation was already part of their education. With regard to negotiation training, there are clear differences in some sectors.

More training and support desired

A quarter of Swiss executives believe that systematic negotiation management is still only found in large companies, although there is agreement that negotiation skills can be learned. In addition, only one-third of respondents are adequately prepared for negotiations by their company. Here, the majority of Swiss executives would like to see even more support from their companies. Above all, advice from experienced colleagues, training on negotiation strategies and negotiation training with professional coaches and mentors are seen as helpful in preparing for a negotiation.

Swiss executives prefer to negotiate in person rather than digitally

The Corona pandemic has led to companies increasingly negotiating digitally. However, the respondents state that they are more proficient in face-to-face negotiations and consider them more promising than digital negotiations. Swiss executives can be characterized as confident negotiators who predominantly achieve good negotiation results, at least when it comes to assessing their own negotiation performance. If the respondents do not succeed in achieving an optimum negotiation result, the main reason on their own side is that their own goals are too ambitious and therefore unrealistic. On the other side, Swiss negotiators blame the power dominance and negotiating style of the other side.

Potential for improvement in follow-up and cost control

Around 77% of Swiss managers discuss their negotiation experiences and the results achieved with colleagues and superiors after a negotiation. However, a comparison with German negotiation practice, where around 87% regularly exchange negotiation experiences, shows that there is still significant potential for improvement here in Switzerland. It is also noticeable that a large proportion of Swiss negotiation practitioners have no real awareness of the level of costs involved in their negotiations. In the future, it will be important for companies not only to establish a systematic negotiation controlling system, but also to give appropriate priority to the increased importance of claim negotiations.

Greater quality of results and efficiency in small teams

Even though the increasing digitization of negotiations has led to efficiency gains and new options in negotiation management in many companies, Swiss negotiation practitioners continue to negotiate alone or in teams that tend to be smaller, averaging two to three people. In the view of the study authors, the significance and potential for success of team negotiations must be analyzed more closely in the future for Swiss negotiation practice.

Importance of negotiation recognized in education and training in Switzerland

A closer look at the results reveals that younger managers in particular state significantly more frequently that negotiations were part of their training. This can be interpreted as an indication that the importance of negotiation management has been recognized in training and continuing education in Switzerland. In the view of the study authors, it is also advisable for Swiss companies to place greater emphasis on the training and continuing education of qualified negotiation practitioners. The increased relevance of negotiation management should be taken into account in the future, both on the part of academia and on the part of negotiation practice.

Source: BGPartner AG / Negotiation Academy Potsdam