Transcript NEGOTIATION AND CONFLICT RES

Jay A. Hewlin, Esq.
Overview
Identifying The Truth About Negotiations
 Some Negotiation Statistics
 Strategies for Negotiating Salary
 Resources
 Question and Answers
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What is a Negotiation?
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A Negotiation is a discussion between
two (or more) parties in order to solve
(perceived) differences (Pruitt &
Carnevale, 1993).
 Those differences may concern different
interests in resources; moral or legal issues;
strategic advantage in the market, etc.
What is a Negotiation?
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Communication concerning a matter(s)
for which there is a desired outcome(s).
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Creating opportunities
Resolving Conflicts
Creating Value
Distributing Value
Structuring a Deal
Raising a Child
Loving a Spouse
Purchasing/Selling
What is a Negotiation?
Little Stevie
 Little Ethel
 The Pajama Party
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Negotiation and Influence
Each of the above stories is about the
power of influence by individuals who
have no formal authority and are, in fact,
the least “powerful” in the context.
 Each situation is about how to leverage
what you have available to target the
interest of the other individual in order to
get what you want.
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You are worth more than you think!
The Importance of Negotiating
Salary
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Women Don’t Ask
 Study with Carnegie Mellon master’s degree
students:
○ Men’s Salaries were 7.6% higher on average;
○ 7% women negotiated vs. 57% of the men;
○ The negotiation accounted for the 7.6%
difference.
○ Men negotiate 2 or 3 times as often.
Why Negotiate?
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If two 30 year old applicants get offers
for $100,000 and one negotiates and
gets $107,400, how much longer will the
non-negotiating applicant have to work
after 65 to make up the difference,
assuming 5% raises each year?
 Nine years longer!
The Importance of Negotiating
Salary
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Most recruiters are prepared to
negotiate.
Interest vs. Position
The Orange Sisters:
 Working in Ottawa:
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Interest: The underlying motivator. Your
interest is why you want what you want.
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Position: The surface substance of the
negotiation. What you tell the other
party you want out of a negotiation.
Issue Type
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Distinguish between:
 Distributive Issues (Fixed Pie);
 Integrative Issues (Common issues with
different values placed); and
 Compatible/Congruent (Identical Interests)
Three Fundamental Questions
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Who am I?
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Where am I?
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What is the other party’s interest?
What do I want?
 What is my interest? For what am I
striving?
Salary Negotiation Preparation
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The initial hiring decision is about fit.
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A salary negotiation is about creating
value between parties who presumably
want to work together.
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What’s it worth?
 A separate conversation requiring research.
Salary Negotiation Preparation
Defer the money conversation until you
have a total picture of the position and
you know the company wants you;
 Listen carefully to see if the interviewer
brings it up indirectly;
 In most cases, he or she will lead with
some number, but don’t let that deter
you;
 Be prepared to justify a higher number.
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Salary Negotiation Preparation
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Prepare:
 Research the City/Country, the cost of living, the
particular company, it’s culture, management,
and the particular person with whom you are
interviewing.
○ Sources: On-line, books, alumni, fraternity
brothers or sorority sisters; etc.
 Know the salary range before walking into
the interview;
○ Market research, pay for similarly-situated
positions in the field. What are their competitors
paying? How is that organization currently
performing? Sources: Association websites;
books, people who work for the company, etc.
Salary Negotiation
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Think package, not just cash:
 Medical benefits, dental benefits, level of
responsibility, working conditions,
educational reimbursement, extended health
and dental insurance, likelihood of
advancement, reputation in the industry;
professional development, support, start
date, vacation time, flexible time, bonus.
 Create the value
○ If you can’t get more salary, get a bigger
bonus, more vacation time, etc.
Salary Negotiation
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Know your “BATNA”
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Best Alternative to a Negotiated Agreement
Know your Reservation Value:
 The lowest package you’ll take that is above
your BATNA.
Salary Negotiation
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Make sure you receive a letter from the
company identifying the particulars.
Understand that this letter is not
necessarily a contract.
Negotiation Strategies
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Questions?
Resources
Get Paid What You’re Worth: The Expert
Negotiators Guide to Salary and
Compensation -- Pinkley & Northcraft 2003
 Getting to Yes: The Secret to Successful
Negotiation -- Fisher, Ury, & Patton 2003
 Difficult Conversations – Stone, Patton,
and Heen 2010
 The Truth About Negotiations – Leigh
Thompson 2008
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