Abstract
Complex salary negotiations are difficult and involve some responsibilities for the parties involved in achieving the desired outcome. The stages in a complex negotiation process involve preparation and planning, defining ground rules, clarification and justification, bargaining and problem-solving, and closure and implementation.
In the actual salary negotiation, party A, the company, through its representative, negotiated with the interviewee, party B. This process followed initiatives: defining the issues, personal terms, an opening offer, an opening stance, opposition from party A, initial concessions, and finally, a final offer. To ensure that either party wins the negotiation, one should use “Getting to Yes,” as described by William Ury and Roger Fisher, or the BATNA technique described in the coursework.
Introduction
A party’s abilities and expertise unite to make a powerful message in negotiating. When individuals are not entirely ready for the circumstances they will confront, they lose all relevance. This essay will go through the procedures and tactics that candidates for new jobs should use when negotiating their pay.
Accepting a job offer is a challenging element of getting a job offer, which creates a challenging scenario for both sides (Half, 2022). Although negotiating a salary does not require faultless communication or an early victory, it does include some responsibility for delivering the desired job or finishing the necessary assignment on schedule (Lewicki et al., 2019). According to Lewicki et al. (2019), as soon as a goal is set, both parties must work toward it; otherwise, the relationship might suffer on many levels. This research examines the steps taken during a complex salary negotiation. The report also draws attention to the process, including preliminary research, formally requesting a negotiation, and assessing what each party stood to gain.
Stages in a Complex Negotiation Process
A complex negotiation is difficult in this situation, where a talented incumbent is happy with the job description and the corporate culture. In this case, the recruiting manager highly regards the incumbent and has made a talented person an offer of employment. The management has a specific range that they have ruled out in this compensation discussion.
The organization has discovered candidates for the role who have the training and qualifications to execute various responsibilities, which are coveted even by competitors. Although they do not want to lose the interviewee, they are constrained by a specific pay range. The following section will examine the stages and strategies that management and the interviewee will use to succeed in this negotiation.
Preparation and Planning
Individuals (as a party to the negotiation) must decide and make clear their objectives during the planning and preparation stage. This is the time to define and fully comprehend the terms and circumstances of the transaction and the nature of the disagreement (Lewicki et al., 2019). This is a distributive bargaining scenario, and such negotiations begin with establishing an opening, objective, and resistance point (Madden, 2022).
Both sides have options, and whoever has a stronger option has a better chance of prevailing and walking away. The interviewee has the option of choosing a competitor, and the manager has the option of hiring someone else. Realistic alternatives must be considered since they provide both parties the power to establish goals and choose the amount of expectation they can meet or demand (Lewicki et al., 2019). The interviewee and the manager establish the tone by discussing the problems and their relationships.
Definition of Ground Rules
After both parties have completed their respective planning and strategy creation phases, it is time to work together to formalize the norms and procedures for the negotiation. At this point, the interviewee and the opposing side will agree (Dixon, 2020). The parties often trade their initial stances at this phase.
Clarification and Justification
When the first positions have been exchanged, the phase of explanation and justification may begin. The initial stance or requests will be explained, clarified, supported, and justified by both parties. This is a chance for the interviewee to explain their viewpoint to the opposing side and learn more about how they feel about their stance (Dixon, 2020). Each of them might use this chance to describe how they came to hold their present position and to provide any supporting evidence (Dixon, 2020). Each side could use this chance to analyze their original negotiating plan and decide if it still represents a sound strategy.
Bargaining and Problem Solving
This is when the giving and taking part of the negotiating process starts. The argument will be presented in this case, and their position will be strengthened using all the material obtained throughout the planning and preparation phase (Dixon, 2020). The interviewee may modify their viewpoint if the opposing side presents a strong and convincing case (Dixon, 2020). Also, it is crucial to stay on topic and allow an impartial dialogue to occur (Menkel-Meadow et al., 2021). People should keep their emotions under control. Both sides should eventually reach an understanding.
Closure and Implementation
When an agreement has been reached, policies must be devised to carry out and oversee the agreement’s conditions. The parties formalize everything by organizing it into a framework they can agree on (Menkel-Meadow et al., 2021). From a handshake to a written contract, there are many ways to make a deal official.
The Actual Negotiation
Defining the Issues
The primary factor that prompted this salary negotiation was party B’s alleged underpayment on a recently completed assignment for the corporation. The corporation, party A, had initially agreed that party B (interviewee) would get a fixed monthly salary of $1500, plus bonuses and per diems, bringing party B’s total per month to at least $2000. However, the corporation, which sent a representative to attend the negotiating meeting on its behalf, views this as an absurd sum of money.
Personal Terms
Party B’s least anticipated monthly income is $2000 since their findings are the foundation for further investigation into their employment at the organization. Party B is aware, however, that the corporation may not find this acceptable, which might significantly impact how this discussion turns out. From party B’s perspective, any sum less than $2000 does not reflect the competence and commitment necessary to complete duties given in the field, and the company’s pathway will be determined by its refusal to match this sum or provide a reasonable substitute.
Proper future planning in terms of timely per diem delivery prevents the use of personal resources in the completion of affiliated projects, which may prove expensive and non-refundable if done off the record. According to Menkel-Meadow et al. (2021), fieldwork expenses involving per diems are unpredictable. As such, Party B would propose that the funds used for this purpose be deposited separately, based on need rather than pay. Moreover, party B should suggest that the final sum be routinely evaluated and changed based on their performance or the company’s ideals.
Opening Offer
An offer considered modest by the opposing party may have been raised to give the other party more leeway or to get a larger settlement overall. The beginning offer indicates a more cooperative position if it is slightly closer to the resistance point (Quintanilla & Wahl, 2020). When the negotiator understands the opposing party’s constraints and predetermined course of action, these queries become less puzzling (Quintanilla & Wahl, 2020). Negotiators may establish their starting offers with the assistance of the other party’s information, but it does not provide specific instructions.
Opening Stance
There is a propensity for negotiators to make concessions. Therefore, it is crucial for them to carefully consider the message they intend to convey with their starting position and subsequent compromises. A cordial approach often accompanies a realistic negotiating position, but an excessive negotiating position is typically accompanied by a more aggressive, competitive attitude (Lewicki et al., 2019; Quintanilla & Wahl, 2020). Party A will find it difficult to understand and respond when the initial offer and position provide conflicting signals.
Opposition: Party A
The representative appointed by the firm will discuss its preferences for compensation and its stance about taking into account an additional wage adjustment. The company’s highest offer is $1800, which Party B may accept as a starting point for negotiations. This sum will be paid depending on an evaluation of Party B’s milestones and monthly achievements, and subpar performance will not be recognized. This approach is reasonable since it calls for flexible arrangements around meeting the performance goals established by the firm, which is good for both individual and organizational development.
Initial Concessions
The counteroffer, which is often made in response to an opening offer, establishes the starting range. This gives party A the opportunity to make a more acceptable offer, and there is a potential that they will also talk about the duty and what would encourage them to take the wage. This is an important stage because it will help the interviewee’s demands, obligations, and possibly aspirations regarding this income and position.
Final Offer
At some point, a negotiator wants to make it clear that there is no more space for negotiation and that the current offer is the last one. A skilled negotiator would state, “This is as far as I can go,” while discussing a salary with management. Nonetheless, there are occasions when it is obvious that a straightforward statement will not be sufficient; as a substitute, concessions might be used to make the point.
Party B’s lowest anticipated pay, which will not be disclosed in advance since it would give party A an edge, is $1800. First off, it aids in avoiding regressive bargaining, which is when a representative makes a non-profitable proposal in response to a modest concession that would match party B’s request. As such, the negotiating firm will be asked to consider such incentives as bonuses, sick days, and the availability of expenses to account for such levies as benefits and perks. Moreover, remuneration for working conditions that promote health and safety should be given (Quintanilla & Wahl, 2020). In this case, determining party B’s goals, outlining their interests, hearing the company’s offerings, and making a selection are all parts of the negotiation process.
Strategies to Apply in the Negotiation
Nobody would have to seek far to receive any assistance if they wanted to learn the art of bargaining. There is no lack of experts that claim to have the finest plan, and each provides unique advice, strategies, and methods to apply throughout the bargaining process in order to maximize gains. “Getting to Yes” by William Ury and Roger Fisher will be the center of this examination, despite the fact that there are many other viewpoints and resources on the matter.
“Getting to Yes” by William Ury and Roger Fisher Analysis
The book, “Getting to Yes” describes the rules and the processes involved in negotiation. According to Ury and Fisher, through negotiation, people transfer and introduce new ideas of moral bargaining (as cited in Schaereret al., 2020). Identifying which needs are stable and which needs are variable for the negotiators is the key to successful principled negotiation, as indicated in both party’s stances. “Getting a Yes” was intended to be a bargaining tactic that would allow agreements to be reached without jeopardizing commercial relationships. Throughout the negotiation process, one should take into account the following five important factors.
Distinguish the People from the Issue
This outlines how the parties ought to communicate with one another during the negotiating process. Since they are only human, negotiators have a personal stake in their outcomes. It may seem as though the company, through the representative, is personally attacking the interviewee if they lower the asking price based on Party B’s position. In this case, there will be a better opportunity for a peaceful outcome if both parties enter a negotiation determined to communicate clearly and try to recognize the emotions connected to the negotiation process.
Parties Should Put Their Attention on Their Interests Rather Than Their Status
This is a factor that should be taken into account at every stage of the negotiation, from planning and preparation to explanation and justification. The position of a party is what can be decided as this would avoid such statements as, “He chose to act that way because it suits his interests”. Each side should make an effort to articulate their interests clearly and fully comprehend those of the opposing party.
Provide Options for Both Parties’ Gain
The parties should get together and attempt to develop as many ideas for resolution as they can at this point, which is included in the bargaining discussion portion of the procedure. In order to come up with as many win-win solutions as possible during the brainstorming sessions, parties can concentrate on their common interests (Schaereret al., 2020). Evaluation of the suggested solutions might start after all other options have been considered.
Insist on Applying Impartial Standards
During the negotiation process, using objective standards can keep the conversation civil and the connection intact (Menkel-Meadow et al., 2021). Parties must consent to the use of these objective standards, which may be established at any time following the ground rules phase (Menkel-Meadow et al., 2021). Statistics, previous legal rulings, professional standards, and other reliable and useful data can be used as objective criteria.
Recognize the “BATNA” Technique
The best course of action a party can take in the event that negotiations are unsuccessful and an agreement cannot be reached is known as the BATNA (the best alternative to a negotiated agreement) (Lewicki et al., 2019). Using BATNA as a comparison, the interviewee should not acknowledge any salary below the asking amount as it would be below the BATNA set figures (Lewicki et al., 2019). Without a comprehensive understanding of the BATNA, a party is negotiating blindly (Jung & Krebs, 2019). The technique comprises the following leverage techniques.
Using Leverage and Power in Negotiations
Power is a tool that negotiators can use to their advantage to boost the likelihood that they will succeed in obtaining their goals. All negotiators desire power, and this trait is useful in all types of negotiations since it functions as a technique and a component of a strategy. Negotiators must be aware of their options for applying pressure to the other side and persuading them to see things their way, give them what they want, or change the other’s opinion (Lewicki et al., 2019). If party A has both strengths and knowledge, this would work nicely.
Finding the Other Party’s Resistance
It is crucial to keep finding out more information about the opposite side. These are the questions that managers or recruiters ask in advance. For example, in this particular instance, the manager must have questioned the applicant to see if they had any offers from any other companies or their competitors. At the same time, the manager, recruiter, or business does not want the applicant to be aware of the resistance point. As such, it is best to keep some targets and sensitive information about a vulnerable emotional or strategic position under wraps (Jung & Krebs, 2019).
On the other hand, party B can want party A to know certain information—some of it factual and accurate, some of it fabricated to make the other party think things that are in their favor. Each party seeks to learn some information while keeping others secret. Each side is also aware of the other’s desire to gather and conceal information. Communication may become complicated as a result since information is frequently communicated in an evolving code during negotiations.
Knowledge About the Other Party’s Aim
It is the role of the negotiators to learn about the other party’s target, including what they actually want and what their main concerns are. The negotiators can follow one of two main strategies to accomplish these duties, such as learning more about the underlying causes of resistance through indirect information gathering. It can also be through learning more about the opposing party directly by asking direct questions about the problem or their concern.
Conclusion
This essay concentrated on the tactics and strategies an interviewer should employ to get the desired outcome. This essay also discussed the facts that managers should compile beforehand and their main themes. Maintaining your mindset and learning as much as you can about the opposing party can help you win the negotiation. The influence that knowledge has is undeniable; it influences both the opening offer and the choice the other party makes.
The negotiation process should encourage both sides to express themselves and allow for the presentation of specific requests and proposals. Negotiations must adhere to a confidentiality policy protecting client issues, which are not grounds for contract termination but rather a topic of conversation as both parties seek a resolution that benefits both parties. This promotes and supports organizational unity in the interest of sustained business growth.
References
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Half, R. (2023). How to negotiate salary after you get a job offer. Web.
Jung, S., & Krebs, P. (2019). The Essentials of Contract Negotiation. Cham, Switzerland: Springer International Publishing.
Lewicki, R., Barry, B., & Saunders, D. (2019). Negotiation (8th ed.). McGraw Hill.
Madden, T. (2022). Council post: Five salary negotiation strategies for high-level employees. Web.
Menkel-Meadow, C., Schneider, A. K., & Love, L. P. (2021). Negotiation: Processes for problem solving (3rd ed.). New York, NY: Wolters Kluwer.
Quintanilla, K. M., & Wahl, S. T. (2020). Business and professional communication: Keys for workplace excellence (4th ed.). Thousand Oaks, CA: SAGE Publications.
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Shonk, K. (2022). How to negotiate salary: 3 winning strategies. Web.