How can I preparw gor this negotiation?
You are the group product manager for a large and well known developer of multimedia software, located in downtown Manhattan. Although you typically recruit only on the east coast, you've been having difficulty finding the right candidate for a product manager position you need to fill. Three months ago, you were promoted from this product manager position into your current position. In addition to your new management responsibilities, you are still doing your old job. Needless to say, you are eager to hire someone as soon as possible, providing he/she has the right skills. You are seriously considering one candidate. Parker is about to graduate with an MBA from a west coast school and you are very impressed with the initiative Parker took in contacting you about the position, and in how well the first two rounds of interviews went. Although not having done product management before, Parker is in the top of the class at his/her class, has related marketing experience and is very bright with a dynamic personality that will fit in well at the company. Your main concern is Parker's industry knowledge and Parker's desire to move from sunny California to cold New York. You are flying Parker out for a third and final round of interviews, You are prepared to offer Parker the job, providing during the interview Parker can overcome your concern about the lack of industry knowledge, and you can negotiate a reasonable package. Although your company is known to not pay the highest salaries in the industry, this is offset by a very good bonus plan, which typically ranges from 5-10\% of base pay, and a 6 week sabbatical that every employee gets after being with the company for three years. Using salary guidelines from a consortium of 10 companies in your industry, your company typically will start a less experienced product manager at around $93,000 to $98,000 and a more experienced person at $99,000 to $104,000. You are authorized to start Parker at a salary commensurate with his/her skill level. Based on Parker's experience you think your salary offer should be in the lower range for less experience product managers. As the group product manager, who has worked for the company for three years, you are now just earning $110,000. Your company does not have a formal policy about relocation expenses; however, you do know that the last person who moved from the west coast was reimbursed about $5,000. You are seriously considering one candidate. Parker is about to graduate with an MBA from a west coast school and you are very Impressed with the initiative Parker took in contacting you about the position, and in how well the first two rounds of interviews went. Although not having done product management before, Parker is in the top of the class at his/her class, has related marketing experience and is very bright with a dynamic personality that will fit in well at the company. Your main concern is Parker's industry knowledge and Parker's desire to move from sunny California to cold New York. You are flying Parker out for a third and final round of interviews. You are prepared to offer Parker the job, providing during the interview Parker can overcome your concern about the lack of industry knowledge, and you can negotiate a reasonable package. Although your company is known to not pay the highest salaries in the industry, this is offset by a very good bonus plan, which typically ranges from 5-10\% of base pay, and a 6 week sabbatical that every employee gets after being with the company for three years. Using salary guidelines from a consortium of 10 companies in your industry, your company typically will start a less experienced product manager at around $93,000 to $98,000 and a more experienced person at $99,000 to $104,000. You are authorized to start Parker at a salary commensurate with his/her skill level. Based on Parker's experience you think your salary offer should be in the lower range for less experience product managers. As the group product manager, who has worked for the company for three years, you are now just earning $110,000. Your company does not have a formal policy about relocation expenses; however, you do know that the last person who moved from the west coast was reimbursed about $5,000. One issue that still is bothering you is that European trip Parker mentioned during your last meeting. You can't recall the exact dates, but it seemed to be dangerously close to late June, when you're planning on taking your much deserved 6 week sabbatical. This really concerns you, as you will need to reschedule your trip if you are not able to bring someone on board by then. You do have an alternative candidate, who is a Harvard MBA and who did a summer internship for someone else in your company. Better yet, this person wants to start work on June 1 , which would enable you to go on your trip. Although you know this person is experienced and could do the job, he is insisting on $105,000. You also don't like his attitude and question whether he would fit in at the company. You might have to hire him, however, if you can't reach an agreement with Parker in your next meeting. * A HIRE/NO HIRE DECISION, INCLUDING TERMS, SHOULD BE MADE BY THE END OF THIS MEETING. *
