HBR Case: New Recruit Negotiation, Role of Recruiter vs. Candidate 任維廉 at NCTU, 2017

Types of negotiation issues 1. Compatible items Both parties want the same thing Job assignment, location 2. Distributive items Gain for one is a lose to the other Starting date, salary 3. Integrative items Create value for mutual gain What recruiter cares more Vacation time, insurance coverage What candidate cares more Bonus, Moving expense coverage

Compatible items: 1. Job Assignment, Both parties want the same thing Options Recruiter Candidate Division A Division B -600 Division C -1200 Division D -1800 Division E -2400

Compatible items: 2. Location, Both parties want the same thing Options Recruiter Candidate Taipei 1200 Tokyo 900 Beijing 600 New York 300 Paris

Distributive items: 3. Salary, Gain for one is a lose to the other Options Recruiter Candidate $50,000 -6,000 $48,000 -4,500 -1,500 $46,000 -3,000 $44,000 $42,000

Distributive items: 4. Starting date, Gain for one is a lose to the other Options Recruiter Candidate June 1 2,400 June 15 600 1,800 July 1 1,200 July 15 August 1

Integrative items: 5. Vacation time, What recruiter cares more Options Recruiter Candidate 25 days 1,600 20 days 1,000 1,200 15 days 2,000 800 10 days 3,000 400 5 days 4,000

Integrative items: 6. Insurance coverage, What recruiter cares more Options Recruiter Candidate Plan A 800 Plan B 600 Plan C 1,600 400 Plan D 2,400 200 Plan E 3,200

Integrative items: 7. Bonus, What candidate cares more Options Recruiter Candidate 10% 4,000 8% 400 3,000 6% 800 2,000 4% 1,200 1,000 2% 1,600

Integrative items: 8. Moving expense coverage, What candidate cares more Options Recruiter Candidate 100% 3,200 90% 200 2,400 80% 400 1,600 70% 600 800 60%

Optimal approach Recruiter Candidate 1. Job assign 2. Location 1,200 2. Location 1,200 3. Salary -3,000 4. Start date 5. Vacation 4,000 6. Insurance 3,200 7. Bonus 8. Moving Total 6,600

Optimal approach Recruiter Candidate 7. Bonus 4,000 1. Job assign 4,000 1. Job assign 5. Vacation 4. Start date 1,200 8. Moving 3,200 6. Insurance 3. Salary -3,000 2. Location Total 6,600

Value claimer or value creator? Approach Value Claiming Value Creating 1. Motivation Win/Lose: Search for solutions that meet own needs Win/Win: Search for solutions that meet both parties’ needs 2. Information Sharing Conceal information or use it selectively and strategically Share information openly 3. Proposals Positions Interest-based 4. Issues Focus on single issues Focus on multiple issues 5. Negotiator style/frame Competitive (i.e. Poker game) Cooperative (i.e. joint crossword puzzle) 6. Time horizon Short term relationship Long term relationship

Create value vs. Claim value High possibility Low possibility Mid possibility Create Claim Great Good Terrible Mediocre

Negotiating problem The truth is everyone is greedy, especially for the loser. Value creator or value claimer? For integrative items, it’s hard to get a mutual gain. In real life, integrative items are possibly used to compensate the lose of distributive items. The best predictor of an agreement value is the midpoint of the first offer and first counteroffer (within the bargaining zone)

Negotiating Effectiveness Exercise on the recruiting Explore the demand Find the easy issue to deal Create value for candidate Claim value 1.Compatible issue 2.Integrative issue 3.Distributive issue In this case, recruiter should not get too much because we are looking for a good employee to work for long time

Conclusion Types of negotiation issues: 1. Compatible, 2. Distributive: single issue, price, salary, fixed pie, win / lose, claim value, adversarial behavior, concealing information 3. Integrative: assumptions, win / win, trade off, value creation, long-term relationship Balance of interests: understand what they need /work together to maximize the benefit. 己所不欲，勿施於人？ First offer: anchoring effect Concessions: enjoy back-and-forth dance, The negotiator’s dilemma: create value must be claimed Managing the dilemma: pay attention to sequencing, discuss a roadmap for the negotiation process * Urgent message

Takeaways: 如何談薪水 你最好還有其他選擇，Your / His BATNA (Best Alternative To a Negotiated Agreement), pitch yourself, expand pie, build mutual value. 蒐集情資：網站，朋友…… Information asymmetry, 俊廷 聚焦在雙贏，Creating Value: Gather information, Manage concessions, Make multi-issue proposal. Must / Want: Employee: +3~6%, Employer: +1~5%, 1st offer, high but realistic, provide a justification. Concession, ignore other’s offer, find other information, calm down, 換位思考，supportive / defensive communication. 薪水不是唯一的談判內容，還有成長、成就感… growth mindset. 交通大學管理學院 任維廉教授

E-Mail：wljen@mail.nctu.edu.tw 個人網頁：http://140.113.119.160/ Q & A E-Mail：wljen@mail.nctu.edu.tw 個人網頁：http://140.113.119.160/

Takeaway: important, and non-obvious, 喔！這個地方我原來沒想到！ Unimportant Important Don’t waste your time Non-case teaching Obvious Obvious Cocktail chatter Takeaway Not obvious

Case study: a manager’s dilemma Identify and articulate business problems Gather and analyze information applicable Identify and apply an appropriate tool for solving problems.

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