Propose A Solution To The Following Negotiation You Are The
Propose A Solution To The Following Negotiationyou Are The Ceo Of Thi
Propose a solution to the following Negotiation: You are the CEO of Thinkfast, Inc., a high technology firm in Boston. Your top engineer, Jenny Lee, has just been offered a position with your leading competitor, Worksmart.com in Illinois. Pay will be $400,000 a year, twice the $200,000 a year she makes at Thinkfast. Jenny began her career with your firm and has been a loyal and productive scientist. She is in the final stages of developing a microchip that could provide millions of dollars in new business. No one else on your staff can replace Jenny's expertise. Jenny wants you to match the $400,000 salary or she leaves for Worksmart. She cannot take the microchip to a competitor, but she can begin something new for Worksmart, while you try to find someone qualified to take over her old project and position. You currently have a policy (set by you) of frozen salaries until Thinkfast shows a profit, something it has yet to do. Thinkfast is a high-tech startup company that you founded. You are the principal owner. The very survival of your company may be at stake. You need to negotiate the best outcome for Thinkfast.
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As the CEO of Thinkfast, Inc., my primary objective is to retain Jenny Lee, a critical asset to our innovative team, while safeguarding the financial stability and strategic future of the company. Given her unique skills, her contribution to developing a promising microchip technology, and her loyalty to Thinkfast, the challenge lies in negotiating an outcome that aligns her personal ambitions with the company's capabilities and policies. Since the company's policy restricts salary increases until profitability, and immediate financial constraints are tight, a comprehensive and creative approach to the negotiation is necessary.
Firstly, acknowledging Jenny's contributions and her potential value to the company is vital. She has been instrumental in pushing forward a microchip that could generate substantial revenue, positioning her as essential. Her offer from Worksmart with a significantly higher salary presents a serious retention risk. However, offering the same salary increase might not be feasible due to the company's current policy and financial constraints. Therefore, alternative strategies include non-monetary incentives, future compensation potential, and career development opportunities.
To address her salary expectation without violating financial policies, I propose a structured retention plan that combines immediate non-monetary benefits with the promise of future rewards. For example, I could offer her a written commitment to a competitive salary review once the company becomes profitable, possibly within a specified timeframe (e.g., within 12-18 months). This demonstrates that her contributions will be recognized financially once the company's financial health improves. Additionally, I could provide her with increased responsibility and leadership roles in current projects to enhance her engagement and job satisfaction.
Furthermore, offering equity or stock options can be a compelling incentive. Equity aligns Jenny’s interests with the long-term success of Thinkfast, providing her a stake in the company's future profitability, especially if she believes in the microchip’s market potential. Equity participation, combined with a formal plan for salary review, can serve as a strong incentive for her to stay committed and motivated.
Another element of the negotiation involves addressing her microchip project. Since she cannot take the microchip to a competitor, I can leverage her expertise by proposing her as the lead in a new, confidential innovation initiative within Thinkfast. This not only satisfies her desire for new challenges but also reinforces her value to the firm. Providing her with opportunities for recognition, such as awards, promotions, or public acknowledgments, can also enhance her loyalty.
To mitigate the risk of her leaving and developing work for Worksmart, I could negotiate a non-compete and confidentiality agreement. These legal instruments would prevent her from directly aiding a competitor with proprietary information or microchip designs while allowing her to continue contributing to Thinkfast's R&D efforts.
Lastly, I must be transparent about the company's current situation and future prospects. Clear communication about Thinkfast's potential growth, market opportunities, and strategic plans can motivate Jenny to stay by emphasizing her role as a key driver of innovation and success. This transparency fosters trust and aligns her personal goals with the company's vision.
In conclusion, a successful negotiation should involve a mixture of future-oriented incentives, non-monetary recognition, legal safeguards, and transparent communication. While immediate salary adjustments may be constrained, creative and flexible arrangements focusing on equity, leadership roles, and professional development can provide sufficient motivation for Jenny to remain with Thinkfast and continue driving its success. This approach balances her individual aspirations with the company's strategic and financial realities, creating a win-win scenario.
References
- Fisher, R., Ury, W., & Patton, B. (2011). Getting to Yes: Negotiating Agreement Without Giving In. Penguin Books.
- Lewicki, R. J., Saunders, D. M., & Barry, B. (2015). Negotiation. McGraw-Hill Education.
- Thompson, L. (2014). The Mind and Heart of the Negotiator. Pearson.
- Shell, G. R. (2006). Bargaining for Advantage: Negotiation Strategies for Reasonable People. Penguin.
- Malhotra, D., & Bazerman, M. H. (2007). Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond. Bantam Books.