Personality Traits and Negotiations: Does "Nice" Cost You?

Recent groundbreaking research from the University of Cambridge has uncovered a startling truth: your personality traits could be undermining your effectiveness in business negotiations. The study, analyzing data from Germany's Socio-Economic Panel tracking 22,000 households, reveals that personality differences significantly impact professional outcomes and negotiation success.

The findings are particularly striking for individuals who score higher for traits like agreeableness—a characteristic often associated with social harmony but linked to reduced bargaining power in business negotiations.

The "Agreeableness Penalty" in Professional Settings

The research identifies what we can call the "agreeableness penalty"—where highly agreeable people tend to avoid conflict, making them less assertive in business negotiations. This trait can significantly impact professional outcomes, creating measurable disadvantages in deal-making scenarios.

Conversely, emotional stability—a trait that predicts resilience and composure—correlates with better negotiation outcomes. However, individuals with lower emotional stability may struggle with the pressure and uncertainty inherent in complex business negotiations.

The Impact on Business Performance

The Cambridge study found that personality traits influence professional outcomes through their effect on negotiation behaviors. Traits like conscientiousness and emotional stability positively influence business results, while high agreeableness can create challenges in competitive negotiation environments.

This finding underscores how much personality differences—not just technical skills or experience—drive disparities in business negotiation success.

How Information Becomes Your Negotiation Equalizer

While personality traits may seem fixed, there's a powerful solution that transcends these inherent characteristics: mastering informational power in negotiations.

As negotiation experts at RED BEAR explain, "information isn't just helpful—it's power." Whether you're managing multimillion-dollar supplier agreements or navigating internal challenges, your ability to gain, protect, and strategically use information can determine the outcome.

The Strategic Advantage of Information Management

In negotiations, the party with the clearest understanding of facts, motivations, and risks tends to dictate the terms. Informational power enhances your leverage—not by force, but by insight. It allows you to steer conversations, counter demands, and make confident decisions without being reactive.

For business negotiations specifically, this means understanding:

• Market benchmarks and competitive positioning
• Counterpart motivations and constraints
• Internal decision-making processes and timelines
• Risk factors and alternative solutions

Three Ways to Leverage Informational Power in Business Negotiations

Let's talk through how to leverage informational power.

1. Uncover: Ask the Right Questions Early and Often

Top negotiators aren't the best talkers—they're the best listeners. Research shows that expert negotiators ask more than twice as many questions as average performers. This isn't accidental—it's the result of planned, purposeful inquiry.

In business negotiations, effective questioning helps reveal:

• The other party's underlying needs, not just surface wants
• Their flexibility on timing, budget, or scope
• Pressures they face internally (like quarterly targets or inventory concerns)

For example, buyers who ask deeper questions like "Why is this timeline critical?" or "What alternatives have you considered?" uncover decision-making dynamics that lead to more profitable outcomes.

2. Leverage: Use Strategic Data to Influence Outcomes

Once you uncover valuable insights, the next step is to use them strategically. Leverage isn't about overwhelming the other party with information; it's about choosing high-impact data that strengthens your proposal or discredits theirs without triggering defensiveness.

This could include:

• Competitive pricing benchmarks
• Supplier cost breakdowns
• Internal usage trends or spend forecasts

For example, RED BEAR worked with a sourcing executive armed with cost models who was able to challenge a supplier's price point—and immediately secured a 20% reduction. The key was preparation and precision in using informational leverage.

3. Protect: Know What to Hold Back (and When)

Not all information is meant to be shared. In fact, oversharing can be just as damaging as having too little data. Smart negotiators avoid disclosing internal deadlines, walkaway points, or budget constraints too early in a negotiation.

For example, RED BEAR worked with a leading technology company whose technical team shared their technology roadmap too freely with a supplier during an early-stage discussion. The supplier used that information to strengthen their position—while the company gained no real advantage in return.

Protecting information doesn't mean deception—it means timing disclosures with intent, ensuring transparency serves strategic rather than reactive purposes.

Overcoming Personality-Based Negotiation Disadvantages

For individuals whose personality traits may put them at a disadvantage in negotiations, informational power becomes even more critical. Here's how to compensate:

For Highly Agreeable Negotiators

If you score high on agreeableness and tend to avoid conflict:

• Prepare extensively with data and benchmarks to build confidence
• Practice framing requests in terms of mutual benefit
• Use questions to guide the conversation rather than making direct demands
• Focus on collaborative problem-solving rather than adversarial positioning

For Those with Lower Emotional Stability

If you experience higher stress or anxiety in negotiations:

• Over-prepare to reduce uncertainty and build confidence
• Practice responses to common objections and scenarios
• Use structured approaches and planning tools
• Consider bringing a trusted advisor or team member to important discussions

The Strategic Planning Advantage

The most successful negotiators don't improvise—they plan the flow of information as part of their pre-negotiation strategy. Rather than reacting in the moment, they identify key questions to ask, decide what data points to use for leverage, and prepare responses to protect sensitive details.

Before any business negotiation, consider:

• What information you need from the other party (and how you'll get it)
• What information you can share to build trust and frame the deal
• What information you must protect—including internal constraints, deadlines, or strategic priorities

Real-World Application: Procurement and Sales Perspectives

Procurement professionals often operate in a world where suppliers come armed with polished presentations, confident projections, and assertive sales reps. The best buyers don't just respond—they reframe the discussion.

That means:

• Asking pointed questions to uncover cost drivers, not just list prices
• Identifying and addressing supplier motivations (e.g., revenue recognition, market entry)
• Validating claims through independent benchmarking and modeling

Buyers who asked clarifying questions and challenged assumptions were able to shift conversations from generic discount requests to deeper value discussions—revealing opportunities for "elegant negotiables" that benefited both sides.

Sales professionals often feel pressure to respond quickly, share generously, and remove friction to close the deal. But too much openness, especially early on, can erode their negotiating position.

Sellers who prematurely reveal pricing flexibility or product limitations may find themselves cornered, while those who ask about the buyer's procurement cycle, key influencers, or alternative options can better shape the deal on their terms.

The best sales negotiators:

• Ask the right questions to get beyond surface objections
• Time their concessions strategically
• Manage the perception of value by anchoring discussions early

Building Your Information Advantage

To negotiate from a position of strength in business discussions, follow these best practices:

Prepare Systematically

Build a checklist before every negotiation that clarifies:

• What information you need from the other party
• What information you can share to build trust and frame the deal
• What information you must protect

Ask Smart Questions

Use emotionally intelligent questions that reveal more than yes/no answers:

• "How did you arrive at that figure?"
• "What are the internal hurdles to approval on your side?"
• "What would make this agreement more valuable to your stakeholders?"

Respond Intentionally

When faced with uncomfortable or revealing questions, respond strategically rather than reactively. Instead of saying "We're flexible on pricing," consider:

• "We're committed to building value into the deal—what does that look like from your side?"
• "Our pricing reflects multiple levers, not just cost—what parts of this package are most important to you?"

These responses shift focus back onto shared value, without conceding ground prematurely.

The Bottom Line: Information as the Great Equalizer

While personality traits may influence negotiation dynamics, they don't have to determine outcomes. By mastering informational power, negotiators can overcome inherent disadvantages and achieve results that reflect their true capabilities.

The ability to manage information skillfully—uncovering insights, using data for leverage, and protecting sensitive information—represents a learnable skill that transcends personality limitations. Whether you're naturally agreeable, experience higher stress levels, or simply want to improve your negotiation outcomes, strategic information management provides a path to success.

As the Cambridge research demonstrates, personality matters in business negotiations. But with the right approach to information management, it doesn't have to be limiting. The negotiators who consistently achieve the best outcomes aren't necessarily those with the "ideal" personality traits—they're those who understand that in negotiations, information isn't just helpful—it's power.

Take Action: Transform Your Negotiation Approach

Ready to master the information advantage in your next business negotiation? The key lies in systematic preparation, strategic questioning, and intentional information management. Don't let personality traits limit your professional potential—learn to leverage informational power and transform how you approach every business negotiation.

No matter which side you're on, the power of information lies not in possession, but in intentionality. Being deliberate about what you ask, when you ask, how you listen, and what you choose to share is what separates high-performers from average negotiators.