Negotiation process – Wining a job

My approach to the negotiation was as follows

  1. First I studied the case in deep.
  2. Written down the key issues of the Joe in the matter of accepting the job.
  3. Made a list of points associated with each issue

By arranging it this way gave me opportunity to study the case each by issue and focus on main objectives of the negotiation and neglect unnecessary points which may extend the time unnecessarily. The main issues were identified as follows.

Position: The position that I, as Joe Tech, was interested in was with the business development group.   The position I was offered, however, was the associate product manager position.

Salary:  The initial salary offer by Robust was $88,000 per year.   This is important because I need to work for a company that I know is at the top of its market and will guarantee me longevity, stability, and growth.

Incentives: Robust Routers offered a $5,000 signing bonus with a small relocation incentive. The reason I felt that this was an issue is because the average MBA.

Start date: I try to have two week vacation before I join to RR and therefore I would like to postpone my joining date by two weeks.

Planning for negotiation

The initial planning of negotiation was done under following topics, Salary/ Title, Assignment, Signing bonus, Relocation, Stock options, Start date.

And as a Joe my primary interest were to be in the business development department and preferred business development over product management and tried to negotiate with RR to change the job title. Also I rather liked to go for the highest possible management level, even if it means a few thousand dollars less in salary. Since management levels and job titles are directly linked to the size of year-end bonuses and options, in addition I preferred to have more signing bonus over the RR offer as well as tried to negotiate for better relocation plan that will include moving costs, broker costs, potential storage, and a flat sum for other extraneous costs. The stock option was not concerned much since I thought it will be at last on the table RR be unwilling to concede on other issues. The starting date was not concerned as major issue although need to negotiate for a vacation after the graduation.

The walk away points and maximum expectation were set also under same major topics. I expected the minimum salary of $78.000 while my maximum was $100,000+. I’ll work at RR Under the minimum job title of associate product manager while I expected to negotiate for the maximum of product manager or product manager in business development which will be well matched with the market conditions. The signing bonus expected to be between $7.000 and $15.000 while relocation was between $5.000 and $10.000+. I did not set any minimum or maximum level for any stock options and my minimum starting date was June 1st while I negotiated for the later date.

I targeted $85,000+ salary as an associate product manager, $90,000+ as product manger and also targeted a position of product manager or the position of business development manager. The signing bonus: $7,000 in target range and Relocation have RR cover all costs associated with moving under a relocation plan/ package that covers all moving costs, broker costs, potential storage while searching for a residence, and a flat sum to cover other extraneous costs. If any Stock options were given expected an increase in the number of options or the speed at which they vest and targeted Start date was a few months after graduation in May.

As a Joe Tech I will be basically responsible to myself first that I need to be self motivated and  then to Leigh Bultema (employer): CEO Craig Hall, managing director (boss) of the Product Management Group, Robust Routers (RR), other new hires.

The advantage I had was Leigh Bultema knew me from last summer when I was working at RR as an intern. The basic strategy was maintain good relationship; get the job but maybe a better deal on some of the issues (job at RR still preferred over others)

I did research on RR and the product management department, RR’s current compensation structure, stats on other graduating MBAs starting salary (entering this or similar industries), stats on competition and other possible job offers, documents on own past outstanding performance and reviews.

The planning place of the interview was Leigh’s office or small conference room at RR and appointment was set for the negotiation. The negotiation was plan only between Joe Tech and Leigh Bultema and plan to sign the contract by each party at the end of the negotiation. As a Backup plan Backup plan if negotiation fails I had few options as accept RR’s offer with current terms, accept FourCom’s offer, or keep looking.


Salary/title: $81,000
Assignment: associate product manager
Signing bonus: $ 5.000
Relocation: $5.000 pay through company service
Stock options: raise from 500 to 625
Start date: June 14, Company offer ticket for my vacation
Annual bonus: 9% of base 5%
Purchase of plane ticket for vacation. Company car and 5 days additional vacation time

Negotiation process on the phone

The negotiating procedure was structured on the base of salary, Assignment, Signing bonus, relocation, Stock options, start date and annual bonus. The negotiating parties were two that me (Joe) and the opponent (Leigh). The purpose of the negotiation was to identify plus and minus situations for both parties and come to an agreement in regarding intangible and tangible issues that were discussed and come to an agreement as a win win situation. My strategy was to have neutral and compromising negotiation with forcible and avoiding modes at necessary occasions since as a joe I preferred to join to the RR and I did not wanted to lose my good connection and the image I had with the Leigh at my intern period and also I believed that she will act in fare and sincerely with me according to my past association with her.

I have done fairly but not up to the satisfactory level at the negotiation. However could gain some benefits and also unexpected offer like vacation ticket Leigh was offering for me. I did well gaining my stocks up to 625 and could negotiate my signing bonus and relocation allowances increase up to $5000 each. Apart from this I was offered a company car and additional five days for my vacation with company purchased air ticket which I did not expected. Also I got high company bonus that was 9% from the base 5%. However could not increase my salary up to the expected level that was $88000 and she was firm in the salary that it was settled to the $81000.  In addition I had to end up in associate product manager and my request upon move to the business development department was got in to concern but kept aside until vacancy arises.

In overall negotiating pattern I did not expected to in aggressive manner however it was look like I just demanding since it seems I wasn’t cooperating enough but try to pull-out my demands at once. However I think I was well compromised and we both knew our limitations and flexibilities well.  I was not success very much in getting high salary or assignment I wanted but could gain other benefits I have expected at the preparation.


At the negotiation I think I Farley lose my self confidence at the middle of the discussion when Leigh said that her boss will not allow to increase the salary any more and also my interpersonal skill were not strong enough to handle this type of situation.  At the beginning of the discussion I was bit nervous and I guess I lost my self regulation which allowed good chance to the opponent to start bargaining without negotiating information’s. However I believe I use the past connection I had with the company and personally with her as referent source of power on influencing that I think I have been successful. By using this I could gain lot and those will be useful to me when I’m at the office. In addition I need to build more in self confident and need to be self motivated with quick response.

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