Friday, August 04, 2006
Here's a case study..I edited from a document from a friend.
It's happening in the REAL WORLD..
FateBoy : ME! (WHAHA..can't think of another name...don't want to upset any one)
Mr XXX: BOSS
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FateBoy has been working as a Recruitment Consultant for the past two years. He has been covering the duties of both recruitment and business development executive jobs and, his salary has not been revised.
Currently, the job market is favorable due to economic recovery. FateBoy intends to resign from his present job in order to seek one with better pay. So far, he has gone for two interviews with pay packages that promise to be more than what he is getting now. He submitted his resignation letter to the "One-Man Management Team", Mr XXX, for his attention.
Mr XXX: I hope you will share with me what is on your mind? Why are you resigning?
FateBoy: Salary is the issue because I believe I have been doing the jobs of two people since my last promotion and I think now that the company is doing well with the recovering economy, I should get better pay in recognition of my contributions to the company.
Mr XXX: Well ...(thinking real hard and punching a calculator) Hmmm... Let's just say I am fully aware and grateful for your contributions over the past two years and I am now prepared to offer you a pay increment of S$100 on top of your basic salary.
FateBoy: Thanks for the offer. May I know how you arrived only $100?
Mr XXX: Well...it's based on sales figure over the past 2 years.
FateBoy: Just to clarify, what methods did you use to determine this amount? Do you know of any other employee who is willing to cover my duties for my salary?
Mr XXX: Ok! Let's not get into an argument over this. What's the expected salary you have in mind then?
FateBoy: Using the market rate of a Recruitment Consultant as a benchmark, I think I deserve 15% more than what I am currently getting. Besides, I am performing the jobs of two people so I'd like to propose 25% more than what I am getting today.
Mr XXX: 25%! You've got to be joking! This is way beyond what I am prepared to pay for a Recruitment Consultant!
FateBoy: Mr XXX, I am not asking for 10% or 25% but for fair remuneration. Don't you agree that it is only fair that I get paid for my contributions to the company?
Mr XXX: Ok. I'll offer you a basic salary of $2000. That's the highest I can go. Don't ask why but it's my decision as the boss of this company!
FateBoy: But how do you decide on this figure? An S$2000 basic salary may be fair; I don't know. Unless you can state objectively why that amount is fair to me, I think I am likely to get a better offer from other companies.
Mr XXX: Look, the company is not doing as well as you think despite the recovering economy. I have to also cover for those consultants that are not performing! See the bills? (Throws the bills on the table) I still have to cover all these! I also cannot fire them; I have "feelings" for them! I have developed "feelings" for these people over the past 2 years. Look, FateBoy, THE SKIES THE LIMIT! You can earn a lot more and have enough to even get a credit card! (Throw his credit card on the table) OR, you can even own a CAR! (Throw Nissan Sunny Car Keys on the table)SEE! Ok, Take it or leave it! I have another appointment now. Think over it and discuss it with me again on Wednesday.
FateBoy gives a pissed off look and gets out of Mr XXX's office... ...
(*Wednesday arrives .....*)
By now, FateBoy has received two offers from two companies who are willing to hire him and is called into Mr XXX's office.
FateBoy: Good morning Mr XXX. I have just received two job offers from separate companies and they are willing to pay me at least 25% more than my current salary.
Mr XXX: Alright... Let's use 25% as a base for discussion.
FateBoy: Very well then. What does it cost to hire a Business Development Executive/ Manager at the current market rate?
Mr XXX: It costs about $2,500 - $3,000 per month. Why?
FateBoy: Since it's clear to you that I am also doubling up as a Business Development Executive/ Manager, it's only fair that I am paid for my additional contributions. I believe my contributions have brought in about 30% of the company's revenue last year and I think I can do a much better job this year.
Mr XXX: Hmmm ... ok, how about this. I will offer you a 30% increment. However, that means, your sales target figure will have to go up.
FateBoy: (Thinking to himself) should I accept this offer or ask for more?
Mr XXX relates the conversation to you and asks you how he could have been more effective in his negotiation strategy.
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Think about this case study...HAHA! What do you all think? Hope to hear feedbacks from you all.. TAG ME ABOUT IT...keke...
Signing Off
Fate Boy
posted at 10:15 AM... Show Me The Money^^
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