Terms of Robust Routers
The corporation, Robust Routers, offered Joe Tech a position within their company as the Associate Product Manager. The initial offer that was given to Joe included an annual $88,000 salary to be paid in installments each month. Included was a $15,000 sign on bonus payable within thirty days of accepting the offer. Additionally, an offer of 1,000 stock options was given, with the opportunity to receive more stock options in the future. Also included were a $5,000 relocation payment, and a generous benefits package. Joe would like to initiate negotiations in regard to Robust Routers offer (Job Offer Negotiation, 2012).
Terms of Joe Tech
Joe presented his offer in return. He would like to receive a $92,000 annual salary paid in bi-weekly installments. He also desires a $20,000 sign on bonus, and 1,500 stock options. Joe has also added that he does not want to relocate for this position. He has requested a waiver of the relocation payment. He then added an alternative option. Alternatively, Joe wants the company to pay monthly telecommuting expenses for his transportation needs (Job Offer Negotiation, 2012).
As negotiations begin, communication is very important. The negotiation process can affect the acceptance of terms as well as future relations within management, when or if hired. An ideal negotiation process will leave both parties satisfied with the outcome. It is important to understand how the other party thinks, and what their needs and limits are. Knowing the other party can help one determine how much the negotiation can get the individual (Job Offer Negotiation, 2012).
When considering the situation concerning Joe and Robust Routers, an agreement can easily be made. Further negotiations will be needed. However, they will not need to be intense or prolonged. The terms of the negotiation are realistic and similar in comparison, increasing the likelihood of reaching a settlement. Both parties have the advantage of already working together during Joe’s internship. Each party knows what to expect, and knows what is expected of them. There is no need for either party to feel compromised. Doubts could arise without the knowledge of guaranteed competent work. Both parties will need to be cooperative in order to be equally satisfied with the final arrangement (Job Offer Negotiation, 2012).
Results of a Settlement
The main issue of concern facing the negotiation process is the change Joe made in his relocation status. The terms offered by Joe are unrealistic. The offer from Robust Routers is written with the terms of relocation assistance that includes a $5,000 payment to assist with moving expenses. Joe expects the company to pay for his continued round trip costs of telecommuting. Joe should only be eligible to receive the original relocation amount. He can use those funds for his telecommuting costs (Job Offer Negotiation, 2012).
Comparison of Target Goals
Flight costs for the trip would accumulate to an average cost of $560 for each round trip flight taken from Nashville to San Jose. This cost would accrue each month, costing Robust Routers $6720 each year. Robust Routers would end up paying more than the initial $5,000 relocation fee each year. If Robust Routers agrees to all of Joe’s others demands he should willingly comply with the travel cost responsibility (American Airlines, 2012).
Every party involved in a negotiation has target goals. Goals and a bottom line need to be established before the negotiations begin. The two parties must then compare what is desired or expected from each other. The result needs to be financially feasible for all involved. If an agreement cannot be made, it may be best to end negotiations. The bottom line is more about what is needed, not what is wanted. Each party must decide what they are willing to compromise in order to get what they want in the long run (Negotiating Bottom Line Tactics, 2012).
Willingness to Compromise
When considering potential compromises, several steps can help establish boundaries of negotiations. Each initial offer between Joe and Robust Routers was acceptable. The changes in terms were not extreme on Joe’s part. Robust Routers should comply with all of Joe’s offers except for the transportation costs. They know what type of employee Joe is; after all, his previous skill is what propelled the offer in the first place. They want him to work for them and should be willing to comply with his reasonable requests. Joe should realize that he is given the majority of his demands and agree to concede the transportation costs (When to Accept an Offer, 2012).
Differences in Employment Situation
If Joe were in dire need of a job, he may be forced to concede to whatever offer Robust Routers introduces. People tend to accept any reasonable offer given when they feel that they will not have another comparable offer. Joe has the advantage of recently graduating with a degree in an occupation that is in demand. He can also offer hands on experience to clients within the profession. He also has the added benefit of already forming a successful apprenticeship relationship within the company. Joe has leverage that others may not have in the same type of negotiation situation.
Another reason for successful negotiations is due to the needs of Joe’s family. It is likely that Joe’s family will see an impact from Joe’s potential agreement with Robust Routers. The biggest impact will be the stress upon their relationships because of the long distance telecommuting. Joe may want to consider moving his family closer to Robust Routers. As an alternative to telecommuting, Joe could find a job in closer proximity to his current location. The added cost of his telecommuting may also put a strain on their family budget, depending upon whether or not Joe receives his desired transportation allowance.
Winner of Negotiations
Before a decision is made, Joe needs to compare all of his options. Informed decision making is necessary before the negotiations process begins. Joe needs to research current market trends, compare pay scales and benefits, and ask any questions he may have before negotiating. It is also important to avoid involving emotional factors in negotiations. Knowledge is an important step in defending ones expectations (McGraw, 2012).
If a winner of the negotiations must be chosen, the winner will be Joe. He was able to get the majority of what he proposed in his offer. The result of the negotiations was almost idyllic on his end. Robust Routers, although not the winners, are not losers at all. They did not receive unrealistic demands, and retained a trusted part of their business family. When they fulfilled the majority of Joe’s demands, they were able to make their new employee happy with the results. Successful negotiations will leave everyone satisfied with the outcome. Successful negotiations will most likely reflect continued commitment to the company.
In addition to being the winner, the power holder in negotiations was also Joe. He had already made a good impression while completing his internship. He already had the qualifications and experience to begin work with little to no transitional needs. Hiring Joe can save the company time and reduce the expenses of finding a new recruit. Successful negotiations are a plus for everyone involved.
American Airlines. (2012). Choose Flights. Web.
Job Offer Negotiation: Joe Tech and Robust Routers. (2012). Web.
McGraw, D. P. (2012). Money: How to Negotiate. Web.
Negotiating Bottom Line Tactics. (2012). Web.
When to Accept an Offer. (2012). Web.