The Elements of Negotiation

ELEMENT 79Face-to-Face or Virtual Negotiations

“Can you hear me?,” “I can't hear you!” “Can you see my screen, I'm trying to share it?”—these phrases have become a staple in the realm of online meetings. A study I conducted with World Commerce & Contracting reveals that approximately 70 percent of commercial negotiations are now conducted virtually, with around 41 percent occurring via email. As technology evolves, the traditional face-to-face negotiation is increasingly giving way to virtual formats.

Embracing the New Normal in Negotiations

Despite this shift, 96 percent of respondents in our survey still believe that in-person meetings are more effective and valuable. Face-to-face interactions allow for physical gestures like handshakes, eye contact, and the subtle nuances of body language that are often lost in digital communication. This loss can affect the effectiveness and success of negotiations conducted online.

The Challenges and Benefits of Virtual Negotiations

Research by Michael Morris, Michael Janice Nadler, Terri Kurtzberg, and Leigh Thompson, published by the American Psychology Association, highlights the shortcomings of online negotiations:

• Difficulty in reaching agreements and a higher likelihood of impasses.
• Challenges in building and maintaining trust.
• Reduced rapport development compared to in-person negotiations.

So, does this mean we should avoid virtual negotiations entirely? Not at all. Virtual negotiations can be effective and efficient, especially ...