Negotiating Tactics

Building negotiating playbooks for better conversion

For the manager, negotiations become simpler when using a framework to assess the amount of risk they during negotiations. However, we can simplify even further by layering on the job:candidate categorization, to create a clear rubric on how to negotiate for varying roles and with different candidates.

Mostly importantly, the golden rule for the manager is that their goal is not to convert any single candidate, but to maximize the probability that at least one qualified candidate will convert for their role. By being extremely articulate on the job tier and candidate tier, the manager can use a clearly defined playbook to guide their tactics during negotiation. This allows the manager to dedicate more mindshare on being present with the candidate during the negotiations, which further increases their likelihood of conversion.

We will use the following framework to build our playbook, and create tactics for non-fungible, semi-fungible and fungible job:candidate pairs.

Where p is the probability of converting any candidate for the role, V is the value of the role, C is the compensation, s is the conversion curve of a candidate, and n is the number of candidates you can offer to in the timeframe that you need to fill the role.

Non-fungible Negotiations

Non-fungible negotiations occur when you need to fill a highly specialized role where the value scales with the level of performance, and your candidate is a top performer for that role. In this scenario the value to the team is extremely high (V), the candidate is likely very price sensitive (s(C)), and the number of qualified candidates you can find is very low (n).

This means that the cost of losing any candidate is extremely high - it will cost you losing (V), and you don't know when the next candidate will show up. As a result, it is in your best interest to close the candidate in any way possible.

The best way to negotiate non-fungible situations is to be on the same side as the candidate. Your main goal is to close the candidate, and there is no need to be budget conscious in this situation since the value you unlock will be many-fold above this. Everything is negotiable, but the three areas to focus on for non-fungible negotiations are compensation, job fulfillment and personal goals.