Question

1. Jim is an office assistant at a financial services company. He earns $20,000/year. He really needs more money, and believes his company can afford to pay up to $40,000. He doesn't have a college degree, however, and knows that the company could easily find another low-wage employee. He has a good relationship with his boss, but there have not been any opportunities for Jim to become involved in finance-related work – only clerical tasks. He has not yet looked for other job openings. Before he goes to negotiate his salary with his boss, he thinks about BATNA. What is his BATNA? What is the company’s BATNA? Giving detail, advise Jim on his negotiation strategy.

Answer 1

Jim should not be in a hurry to do the negotiation. He should lfirst ook for opportunities outside the company and try to get a job at a salary greater than $20,000. Once he gets the job somewhere else, it will be his BATNA(Best Alternative to Negotiated Agreement).

The company's BATNA is that it can easily find another low-wage employee.

Jim will be in a more comfortable position to negotiate only after finding a better paying job. Once he secures a job, he can use his relationship with his boss in his favour during the negotiation process and can ask for more salary and finance related work.