1 Integrative negotiations Multiple issues Differing strengths of preference Differing interests Future relationship Multiple alternatives

2 The Job Offer Agenda: 1) Negotiate The Offer (15 minutes) 2) Return to class 3) Post results on board 4) Debrief the offer

3 Types of issues

4 Theoretical Solutions Solutions can range from -4,800 to 13,200 Best solution strategy: – Give up on integrate issue less important to you & gain on important ones – Agree on compatible issues – Split difference on distributed issues Results in: – Candidate: $6,600 – $6,600 for recruiter – $13,200 joint Averages across large sample: ~200 pairs – Candidate $4,686 – Recruiter $4,295 – Joint: $8,973 – ~$4,200 or ~ 1/3 rd of possible gain left on the table Why the variability?

5 Results Note wide variation in outcomes

6 Class results (2012) Parties pick wrong, even when there is no conflict in interests (location & assignment) Different way to get to same joint outcome (fairness vs. gain) What would have happened if recruiter found another, equally good job candidate?

7 Goals Grow the pie – Look for log-rolling trade-offs – If necessary, convert single issue deals to multi-issue deals – Reveal priority information & ask for questions – Take your time Then split the pie – Know your alternatives BATNA & Reservation point – Set aggressive targets – Make first offer – Provide facts & rationale

8 Ways to grow the pie Build trust and share information – Ask questions – Give away information about your priorities Make package offers, not one issue at a time – Make multiple offers simultaneously Search for “post- settlement” settlements

9 Make package offers Nothing is settled until everything is settled Going issue-by-issue eliminates the possibility of trading off across issues You can use this approach even if they do not Know how issues trade off against each other in your utility function

10 PREPARE! You: – What do you want? – What would your dream job be like? What are you worth? – What are your alternatives? (your BATNA) Identify the least acceptable deal (your RP) Keep in mind a realistically optimistic deal that will take care of your wants (your target)

11 Developing a Scoring System Goal: Develop a metric by which any agreement can be scored How to do it: – List all the issues of concern – Generate alternatives for each of the issues – Score each alternative – Provide relative weights for all the issues

12 Salaries at CMU DegreeMedian salary offer Bachelors, HCI$100,000 Computer science$100,000 Psychology$45,000 Information Systems$72,000 Communication Design$90,000 Masters, HCI$90,000 Tepper, BA$70,000

13 Language to Use Distributive language leads to lower joint value & more impasses Demands Threats Arguments about positions Information exchange over the positions (i.e., what I want) Integrative language leads to more joint value & fewer impasses Concession exchanges Relationship building Rationale & explanation Information exchange, especially about priorities over the issues (i.e., what is important to me) – Asking – Telling

14 Summary PREPARE, PREPARE, PREPARE Know what you want, and what you’re worth. Gather as much information you can get about the market and the potential employer. Ask for what you want. If you don’t ask, you don’t get. Negotiate for mutual gain and be prepared to make trade-offs. Know the value (to you) of what you give away. Keep the relationship in mind. Be comfortable with your negotiation style. You need to appear committed and sincere.