Exercise 15: Job Offer Negotiation
NEGOTIATION OUTCOME SHEET
__X___ We were unable to reach a settlement.
_____ We reached an agreement, detailed below.
Signing Bonus: _____________________
Stock Options: _____________________
Joe ...view middle of the document...
▪ Justify your demands/offers
My justification comes from the availability of candidates. If Joe was the only candidate, then I would have changed what my demands were. I would have offered more concessions to keep this person around. All employees have to start out at a certain level. Also, if you want a certain job bad enough, then there are sacrifices that you have to make. One of these was moving to a higher cost of living area or starting a job sooner than planned and cutting into a vacation. I thought the company was gracious to even offer a relocation expense. Most jobs do not. Also, one of my goals was to have Joe accept more stock options rather than take bonuses. Also only offering Joe the production assistant job was the better move because it would let him understand the job structure process and how everyone’s role applies to the firm.
▪ Know your priorities
The priority for me as the hiring manager was to start getting qualified people in. It would have been ideal to get Joe but there were others. During the negotiation, I would have wanted to get Joe to accept stock options prior to giving in to signing bonuses. I was able to offer certain bonuses up to a certain amount, but to keep fairness among other employees and not to set expectations to high, my direction was not to give them out or not very high ones.
▪ Develop rapport
I know that good feeling between people can usually lead to a better understanding and resolution between the two parties. I tried to start off with some pleasant banter for this exercise, Deena (acting as Joe Tech) was not able to develop any rapport with me. She started out directly with her demands and wouldn’t budge on any issues. That led to a defensive stand from my point of view which was another reason I would not offer much more for the incentives. At one point, she stated for me to “sharpen my pencil”. At that point, I knew the negotiation would end without an agreed amount. After she said that, I told her that if I were to “sharpen my pencil”, the amount of everything would only go down, not up.
▪ Cultivate alternatives
I had several alternatives for this exercise. I was willing to offer more in relocation expenses and end of year bonuses. Also, I had other candidates to choose from that were qualified.
▪ Live up to your commitments
My commitments are to my company first and new employees second. I had the backing from my supervisor to offer certain compensations that I was willing to give, but Joe Tech would not work with me. In my opinion, Joe was only looking for money and I couldn’t trust that he would have stayed for the long term.
[Deena Baylis joined the session] Apr 11, 2013 6:51:28 PM EDT
Michael Dombkiewicz: hey Apr 11, 2013 6:51:57 PM EDT
Michael Dombkiewicz: there should be a way for us to chat without other people Apr 11, 2013 6:52:14 PM EDT
Deena Baylis: Hello, Leigh its nice to see you again. I'm here to discuss terms...