It Depends Whether Another Bus Will Come Along

A variety of factors are at work while negotiation is taking place, the current scenario, the perks, power wielded by any of the parties

Negotiating Conditions

This refers to conditions when parties need to negotiate or rather COMPROMISE to come to a final decision. Needless to say, we almost never have a level playing field to play and one of the parties is almost and always stronger.

Jobs Available

When conditions are good (or other words favourable for employee), no one gives a damn to how many jobs or job offers you have in hand or had in the past. These contracts never cross anyone's mind, because the scene is "If one bus leaves, other is sure to come by in next 15 minutes. After all one should not run after trains and buses" this is what has been taught to us. As we all saw in the past, the companies used to chase candidates to join (HPS Case First Half) as would have been experienced by many of my classsmates having work-ex.

But come a recession, there is only a single bus to catch for all.

Talent Pool Available

Even the companies don't delve deep after employment issues as long as demand is high and so is supply, as one candidate leaves another from the bench force can take his place. Also, companies have policies of knowledge transfer and make it mandatory to serve either a notice period or have a bond period before you can leave or are empowered to leave. Here one has to prepare a candidate to take over after resignation.

Competition in Market

A market with low competition allows companies to recruit even medium class talent in case of talent crunch, meaning jobs for everyone unlike in a case of tough competition where top class talent required and a tussle is there to attract it. However, in a market going down the tables are turned and don't even give a second thought before cancelling offers without negotiations (HPS Case Second Half)

Bargaining Factors

These are the factors which the employer and the employee(prospective or present) play with to negotiate, to lure or rather dictate the terms.

Legal Tactics

As said by Sir to not to think like as lawyers as we may know good English, but the employers employ the best law people to write the quagmire of legal clauses and terms which can send someone's mind into a tizzy if he sits down to inspect it. Also, this case was discussed in the IIT Bombay case as the prospective cannot be sued for its action.

However, the betrayed employee can bring the case to the fore with the help of media as we saw in the case of Jet Airways which took back its 1100 employees. The ditched employee can file for a case of mental trauma, though the success figures are not encouraging.

Power of Expertise

This time the ball is in the employee's court as he/she can show an offer from competition to negotiate a bigger package and perks from the company. They need not be always weak, as even in crunch time the company can't let go of its best task people, especially managers.(Hope its a respite for future MBAs)

Past Experience

The expectations for a package vary for a fresher and for someone with work-ex, both cannot be given the same deal. This is another bone of contention for employees with employers.