Abstract
Negotiation is a means of getting something that you want or need from another person. It is a two way communication that seeks to strike a deal or coming to common ground on an issue that both you and the other negotiating party have opposing interests in (Fisher & Ury, 1991).
Negotiation is clouded with myths that stretch from how negotiators carry out negotiations to the kind of attitude they bring to the negotiation table. There are misconceptions that good negotiators are born, but the real truth is that negotiation is a skill; and like any other skill, it is taught (Thompson, 1998). An even the good negotiators can attest that experience is key as it helps a negotiator improve confidence and also acquire accuracy and effectiveness. Also negotiators are considered big risk takers and this is as a matter of fact wrong as they make an informed decision based on evaluations that seek to find a way that will provide optimum benefits. They thus take calculated risks.
Also intuition is not what to depend on when walking into a negotiation. Research should be undertaken during the preparation phase and all the facts put into account and weighed correctly.
Negotiation is not always about winning, both negotiators should try and broker a win-win deal where there will be a lot to be gained by both parties. A non-compromising attitude may doom the negotiations as both parties may decide to stand their ground with no one willing to make a compromise.
Most movies portray negotiators as tough intimidating and mean looking people and as much as this looks effective, it is only effective on scripts. Its chances of taking place in real life are very minimal and almost next to zero. A good negotiator should be warm, friendly and above all very understanding (Rex M., 2014).
In the event where the negotiations are being held in the work place, then both negotiators should seek to find a way to be of service to each other by coming to consensus and every party leaves the table satisfied by the outcome.
Body
I am a newly appointed director in a health care company known as HealthNet. So far i have been successful in the two previous interviews where I was interviewed by the CEO on the first one before I was called for another. Later on, I was called and I was informed that I had landed the job and I was called again to be oriented with the work place, get a feel of the working environment, meet members of my department so that we could get acquainted with one another and also discuss pertinent issues concerning benefit packages and salary to be paid to me together with living arrangements.
Before I got to the new work place, I already had my research well done as this would give me an edge over the Human resource manager since I knew more about the company than they knew about me. Your power in bargaining lies squarely on the amount of information you have about the proceedings taking place or concerning the antagonistic party. Before the negotiations take place, do as much background search concerning the other party as possible and remember information is power and the more you have of it, the better since negotiations are all about giving and taking; give information wisely and you will be given abundantly (Fisher & Ury, 1991) We started off with negotiations concerning work space and the additions and subtractions I needed made to my office before getting to the negotiations concerning salary to be awarded and the benefits package I was supposed to be given. This was done in order to make me as comfortable as possible in my new position. The Human Resource specialist explained that this was all in an effort to ensure employees were comfortable and fulfilled in their work stations.
The Human resource manager started off by asking me the amount of salary I expected to be paid and also the type of benefits package I saw fit for myself and new status in the new position. If we were to get to common ground without me having to compromise too much and ending up with too little, I had to inquire what they were willing to offer me and make a comparison with what I had gathered. In negotiations, you have to do your best to make the opposing party make the first offer so that you can build yours around what is being offered. Starting off by giving the first offer might turn out detrimental as the opposing party might give an offer so low it leaves you with little to gain, so always let them draw the first blood (Mitchel, 2011). The Human Resource manager offered me a basic salary of $105, 669, full health benefits, paid time off and a 410(k) pension plan for a start where if I proved industrious and work hard enough, my pay would be reviewed.
For a counter offer I asked for $151,070 basic salary with the benefit package of a full healthcare plan and the earlier proposed pension plan. I decided on this high handed offer as it meant that even in the worst case scenario I would still have something to gain from the negotiations as we would most likely settle halfway (halfway in this case meant an additional $23,000 and I would most likely retain my benefits package). She turned down my offer saying it was too high and it had to be reviewed and down sized significantly. That was a positive start as she had showed she was open for negotiations concerning the issue on salary.
She asked why I thought I deserved such a high salary yet this was the first time I was working in this position and capacity. As a starter, she thought it was only logical for me to start off with a lower salary then have it gradually increased as I gained more experience in the company. This would guarantee the company that it would not loose so much in the event I turned out not really resourceful and needed to be retrenched so that someone new could be hired.
This is the point where I had to prove to her that I had built credibility over the years and my credentials allowed me to ask for such. In negotiations you should always show credibility and legitimacy when pushing for something. Your intentions should look honest to the other party even if in truth they are far from that (Kouzes & Posner, 2010). I told her that I had two degrees where one was an associates’ degree and the other was a bachelors’ degree in health care management. Currently I was in the process of pursuing a masters’ degree in the same field and this proved without any doubt that academically, I was qualified to work in that position. More so, I had 15 years’ experience working in the health industry and had sufficient skills and technical knowhow to execute my functions. I talked about my expertise in handling matters to do with case management, treatment planning, business development, and medical billing and coding. To prove all these points, I brought forward my degree certificates and recommendation letter from my previous employer. In a negotiating table you should always work with facts and where necessary and applicable, show evidence to ascertain your position or to back your claims and demands (Mitchel, 2011). She said they were not necessary as they have been presented in the earlier interviews and confirmed to be genuine. I also handed her pay slips from my former employer to show her just how low her offer was as it was just a few dollars dis-similar to my previous one; it would be fair if I got a comfortable salary to go with my new responsibilities and position. She insisted that still I was a newbie in that position and it would be advisable if I could first work then when my work proved satisfactory I would ask for my salary to be reviewed as they would do that gladly. When leaving a negotiating table, do not leave with promises as promises remain simply promises and the other party is under no obligation to keep their promise; instead leave with results. Cut out a deal for yourself and come out holding on to it (Thompson, 1998). I explained that I had gone through all the duties I was supposed to undertake and they were almost similar to the jobs I had been doing in my previous capacity. As such the tasks would not prove to be challenging as I was already familiar with them. The information I had gathered and compiled during the information gathering phase was turning out helpful as I showed the Human resource manager I knew exactly what lay in store for me.
Feeling a bit subdued and surprised at how much information I had, she offered to increase her offer by $10, 000 and this pushed the salary offer from $105, 669 to $115, 669 which was quite significant for a start. Negotiation is all about persuasion, and persuasion involves convincing someone who holds a certain position and making them agree with you or at least hold a similar point of view with you (Wilmort & Hocker, 2010). For a start I had managed to convince her to change her position and become more open to negotiation. I had earlier set the stage for this when I agreed with her to discuss the benefits package offer as the last item of the negotiations. This put her in an uncomfortable position where she also had to make a compromise in order to show good faith and willingness to amicably reach a decision that would favor everyone.
I appreciated her effort but still pointed out to her that I had to regrettably turn down her offer as still it was a bit low when put in comparison with my expectations. I was using the jujitsu method where I was slowly retreating in a bid to pull her to my side and compel her to make another compromise before I could consider budging. I decided to open her up and ask a question that would frame how the rest of the interview would go; this I did by asking why it was difficult for her in her position to grant me the amount of salary I required. She told me that her hands were tied by company rules and regulations as she had limits on how much an employee in a particular position was supposed to be paid and the benefits packages that were supposed to accompany a particular salary. My aim now was to find out that limit. Find out if the other party has limits or deadlines and if they are there, work to slowly inconvenience them into putting them in a position where they have to compromise so as not go over the limit whether it is based on time or resources (Conger, pg.86). The problem was that I could not ask directly so I had to push her to keep compromising until she reached a point where she could not compromise any further. I also had to recognize my limits and deadlines so that I could keep them hidden from the Human resource manager lest she used them against me to advance her agenda.
I framed common ground by showing my patience and willingness to reconsider my stance by going down from $151, 070 to $146,299. It was not much compared to what she had compromised by it was all a matter of showing level headedness and trying to achieve a win-win situation and this could only be achieved by me also making compromises. I had to give so that I could also get as negotiations is all about stakes, so make a good stake and watch your counter scramble to get more (Kouzes & Posner, 2010). She accepted the offer but said it was still too high as it even exceeded the company limits. She was now giving me an idea of how much the company was paying and so I needed to review my stance and asked her to push the original offer up by $30,000. This would push the offer from $105,669 to $135,669 which would be about $8,000 higher than the middle ground, but I was negotiating to get the best deal possible so I was justified. She became apprehensive at first and by now I knew we were getting to common ground so I now put on a mindset that I should not compromise any further and if I had to then I was supposed to give something expecting more in return. She accepted my offer but only on the basis that I would not receive a comprehensive health plan. At this point I reminded her that we had earlier agreed that the benefits package plan was supposed to be the last issue to be discussed in these negotiations. She pointed out that she was willing to agree to my salary expectations only on the grounds that I would not receive the complete benefit package which would come minus the comprehensive health cover. She had only brought up the benefits package as she considered the negotiations were almost coming to a close and by now I realized she was actually working on a tight schedule and was hurrying to finish the negotiations. In return, I would use the filibuster method to wear her out quickly and coax her into agreeing to my terms. I had all the time I required to strike this deal and it was clearly evident on her side she had to strike a deal quickly.
As a counter offer, I agreed to her requirements and also asked to be allowed to keep my current location of residence as it would help me in saving greatly to cater for the medical expenses since I was not getting a comprehensive plan and also to save me from the high costs of living of the suggested new residence. I explained to her that having to relocate to a new location would mean added expenses in terms of moving costs and also the cost of living in the new residence would be significantly high and this coupled with the lowly salary offer would be detrimental to me financially. She insisted that my moving was very important for the company as they needed me close by in case I was needed on short notice for an emergency; so in this case moving to a new residence was compulsory and not open to negotiation. I decided to agree with her concerning the issue on relocation as I was able to see her point of view but asked her for a more favorable offer as the current situation was pressing and straining my resources but in time and finances. She offered to have the company cover my transport and moving expenses and they would also help me source for a new place to reside and check out all the logistics for me to make sure I got a good place to call home.
I was delighted by the offer but with the current issue over the salary and benefits package, i wanted a comprehensive health cover so I put across the point that still I would be subjected to high costs of living so it would only be fair if I was accorded a full benefits package. She was in agreement but then she brought in in another twist where she offered me a salary of $132,500, a full health plan, paid time off and the 410(k) retirement package. In addition, my moving expenses would be fully catered for by the company and in the meantime all my transport expenses until the time I relocated would be fully reimbursed by the company at the end of the month when I would be receiving my salary. They would also scout for residential areas that would suit me in terms of proximity to the work place and also in terms of security.
I provided her a final counter offer which I was very sure she would agree to by asking for a salary of $135,000 and the full befits package. In return I would foot all my moving expenses and only have the company help me in scouting for residence. The additional $3,000 that I asked for would be to cushion me against the added living expenses of my new location as it would be long term and this would be more beneficial to me than the one time offer I would get from the company. She finally accepted my offer and asked me to work hard to meet the company’s expectations as my starting salary was similar to that paid to experienced staff in that similar position. Since the company was making a huge investment in me and that was evident in the salary offering I was getting, she told me that my performance would be keenly scrutinized not to discredit me but to make sure I lived up to all the hype and pomp and I had illustrated and portrayed. Of course the later part was on a light note so we laughed it off to ease the tension that had been created all through the discussion process. I guaranteed her of exceptional work from my part and promised that I would do everything to help the company achieve its goals and make my department the best.
She agreed with me and we shook hands as i signed the contract papers and we shook hands as a sign of good faith and we closed the negotiations by setting a date when I could officially start my duties and I headed out to prepare for work.
Conclusion
After all the negotiation process is completed, my success all has to do with the techniques I have used and the processes I followed to achieve my desired result. All through I was supposed to make sure that the interests of both parties were put into consideration. Also I had to come out vocal about my expectations but do all this without going over the edge and ending up looking bossy or self-imposing. The negotiating ground was supposed to be even for both players to get something that they would sure deserve without one feeling oppressed as this would in future result to bad blood between me and the Human resource manager; in future this would cause us problems in the work place as we would be unable to agree on vital issues. Decisions and agreements were all supposed to be based strictly on facts and material brought forward with each action having a justification. In the end, if all the methods were used and the negotiations did not bear fruit what becomes important is that relationships have been preserved and both parties are open to meet again for similar talks or talks of a different nature.
References
Rodger Fisher & William L. Ury, getting to yes: Negotiation with difficult people, 1991
Kenneth Thompson, moral panics: key ideas, 1998
Kouzes, J. M., & Posner, B. Z. The truth about leadership (2010)3rd edition, p.21
Conger, pg. 86
William Wilmot & Joyce L. Hocker, Interpersonal communication (2010 ch.8)
Rex Mitchell, Negotiation 101 basic concepts: core negotiation concepts, 2011
