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Salary Negotiations

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* This negotiation was an important one from a career point of view as it involves a salary negotiation for an existing job. I have never been in a situation where I have actually negotiated a salary for a person working under me, so it was a good experience for me. I was playing the role of Pat Lynch, V.P. of marketing for Rapid Leatherhead Goods Company. There are 4 main product lines which comprise the major portion of the company’s online sales. A new director for marketing was hired two years ago for mail order sales. He has done a good job with three lines, but the fourth line, which was a problem even before he joined, is still a problem and there has not been an increase in sales for that product. It is the company’s …show more content…

This reasoning resolved a lot of biases which I had in my head and helped me in understanding the reasoning behind his asking for a raise of 20%. We started exchanging information and I told him while he had done a good job for three lines, the Top Flite line was a major area of concern for me, and it was very important that a positive increase in sales be seen in this area. * Invent options for mutual gain: I knew that the main goal was to focus on mutual interest and come to an agreement which would be beneficial for all parties involved. I knew that my main interest was to see an increase in the sales of Top Flite, and his major area of interest was getting a better salary hike. Thus we came up with options for mutual gain. I agreed to a 10% salary hike this year, and if he could bring the sales of Top Flite up to the estimated target for this year I would give him 15% hike.

* Insist on objective criteria: It was very important that we insisted on objective criteria during the negotiation. I asked him the reasons for the hike he was asking for. I also told him the reasons why I could not offer him the hike he was expecting. I was open to him asking me questions and wanted him to be satisfied with what he was being offered. I believe that employee satisfaction is important and it is important that he did not leave the room feeling unsatisfied. I was convinced that a salary hike of around 6 2/3% was too low

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