Negotiation Strategies in Recruiting: Creating Value vs. Claiming Value

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

2. 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

3. Compatible items: 1. Job Assignment, Both parties want the same thing

4. Compatible items: 2. Location, Both parties want the same thing

5. Distributive items: 3. Salary, Gain for one is a lose to the other

6. Distributive items: 4. Starting date, Gain for one is a lose to the other

7. Integrative items: 5. Vacation time, What recruiter cares more

8. Integrative items: 6. Insurance coverage, What recruiter cares more

9. Integrative items: 7. Bonus, What candidate cares more

10. Integrative items: 8. Moving expense coverage, What candidate cares more

11. Optimal approach

12. Optimal approach

14. Value claimer or value creator?

15. Create value vs. Claim value Create Claim Good Great Create Good Terrible Mediocre Terrible Claim Mediocre Great

16. 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 offerand first counteroffer (within the bargaining zone)

17. 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

18. 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

19. 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, buildmutualvalue. • 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 / defensivecommunication. • 薪水不是唯一的談判內容，還有成長、成就感… growthmindset. 交通大學管理學院 任維廉教授

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

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

22. 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.

23. 23