Organizational Behavior Weekly News Update May 28, 2022 – June 3, 2022

pearsonqualbusinesspublishing

Jun 2

Prices are Rising. How Much Should Your Salary Increase?

Vasel, Kathryn
CNN.com

Posted 05/20/2022

Key words and Definitions

Negotiation – a discussion aimed at reaching an agreement.

Cost-of-living – the cost to maintain a certain standard of living.

Leverage – the ability to use something to your maximum advantage.

Summary: Key Points of the Article

Today's job market gives job candidates a lot of leverage. The labor shortage gives workers much more bargaining power since there are almost two jobs for every job seeker. So, how should you handle salary negotiations and other employment demands if you are in the job market? Recruiters recommend the following actions:

Ask for a salary range if pressed to give an expected salary number. Many employers are posing this question much earlier in the selection process. Be prepared to answer it.
Do your homework. Check Glassdoor and other sites to see what others are making. Contact peers in similar positions and see if they will divulge their salary.
Put the focus on your unique skills, abilities, and education. Do not focus on external factors such as inflation but instead focus on what you bring to the table.
If you are looking for remote or hybrid work focus on the benefits to the organization of these work arrangements.
Ask for all home office and technology needs in advance if you intend to work from home.

News Topic

#05 Diversity

Exercise 1 Multiple Choice Questions

___________ is negotiation with the intent of creating a win-win outcome.
a. Distributive bargaining
b. Collective bargaining
c. Integrative bargaining
d. all of these
Answer: Integrative bargaining is negotiation with the intent of creating a win-win outcome. Distributive bargaining assumes there is a fixed pie so when one side wins, the other side loses. Collective bargaining is conducted by labor unions on behalf of their members.
Integrative bargaining is concerned with ____________.
a. getting as much of the fixed benefit as possible
b. expanding the benefits so that all sides are better off
c. dividing the benefits into smaller and smaller segments
d. none of these
Answer: Integrative bargaining is concerned with expanding the benefits so that all sides are better off, or creating a win-win solution.
You should always be prepared to give a firm number when asked about your salary expectations.
True
False
Answer: It is appropriate to ask for a range from the prospective employer if you are uncertain about market salaries for similar positions. You don't want to lowball yourself or ask for too much money.

Exercise 2 Critical Thinking Questions

What factors do you need to consider if you want a hybrid or fully remote job?
Answer: Ask about the organizational support for remote work. Do they provide a computer, printer, scanner, or other necessary equipment? Do they pay for internet access or phone service? These questions should be settled on the front end and not left to chance.
What factors give prospective employees more leverage at this time?
Answer: The labor market is extremely tight right now with almost two jobs for every job seeker. This fact gives prospective employees more leeway to negotiate higher wages, different work arrangements, and potentially better benefits.
What should you focus on when negotiating your salary?
Answer: Focus on your unique skills, abilities, and education. Do not focus much on external factors such as inflation or cost-of-living. The organization will pay you based on what you bring to the table. How you articulate those benefits will determine your pay.