An Interview With ChatGPT. Supplier negotiations, specifically related to recruitment.
This week I interview "Inscribe" (aka ChatGPT) about negotiation strategies, specifically in supplier negotiations for recruitment.
The Weekly Walkaway highlights negotiation in its ‘good’, ‘bad’ and sometimes ‘downright ugly’ forms. Issue No. 71 (29th March 2024).
Summary
This week I interview "Inscribe" about negotiation strategies, specifically in supplier negotiations for recruitment.
We discuss whether to negotiate competitively or collaboratively and Inscribe initially suggests a balanced approach but I challenge this, asserting that in competitive negotiations, a tougher stance may be necessary.
Inscribe agrees, acknowledging the importance of asserting the company's position.
We discuss Procurement frustrations and red flags with recruiters.
Our conversation moves onto a discussion about AI in recruitment negotiations.
We conclude that while AI can assist, ethical programming and oversight are crucial to prevent exploitation.
In conclusion there is food for thought in here for recruiters and their future.
Read on for the full interview
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Thought of The Week
An Interview With ChatGPT
Giles
Hi Inscribe,
Today I'd like to ask you your thoughts on supplier negotiations, specifically related to recruitment and I'd like you to imagine you work in procurement for a very large global brand company. Do you understand?
Inscribe
Absolutely, I'm ready to delve into supplier negotiations within the realm of recruitment, envisioning the context of a procurement role in a large global brand company.
Let's proceed with the discussion.
What specific aspects of supplier negotiations in recruitment would you like to explore?
Giles
That's great Inscribe. Thank you.
Firstly, and remembering you are a large global brand with lots of buying power, would you negotiate with your suppliers competitively or collaboratively?
Inscribe
In the context of supplier negotiations in recruitment, the approach can vary based on various factors such as the nature of the relationship with the supplier, market conditions, and the specific goals of the organisation.
However, in the scenario of a large global brand with significant buying power, a combination of both competitive and collaborative negotiation strategies could be beneficial.
In practice, a balanced approach that combines elements of both competitive and collaborative negotiation can be most effective.
This might involve initially engaging in competitive bidding to establish market benchmarks and drive down costs, followed by collaborative discussions to build strategic partnerships with selected suppliers and explore opportunities for continuous improvement and innovation.
Giles
Hmm, that's very insightful, thank you Inscribe.
Please, tell me more about what competitive strategies you might employ to better your company's position.
Inscribe
Certainly! When employing competitive negotiation strategies in supplier negotiations for recruitment, I’d improve my position and secure favourable terms by:
Market Research and Benchmarking: I’d conduct thorough market research to understand prevailing rates, industry standards, and competitors' practices.
Request for Proposals (RFPs) and Competitive Bidding: I’d issue RFPs to multiple suppliers and invite competitive bids. This creates a competitive environment where suppliers compete on pricing, service offerings, and other terms, allowing me to select the most advantageous proposal.
Negotiation Leverage: I’d leverage the company's buying power and scale to negotiate favourable terms, such as volume discounts, extended payment terms, or additional services at no extra cost.
Alternative Options: I’d foster and maintain a diverse supplier base and explore alternative options to increase negotiation leverage to ensure flexibility and my bargaining power.
Terms and Conditions: I’d look to negotiate favourable terms and conditions, including warranties, service level agreements (SLAs), termination clauses, and intellectual property rights, to mitigate risks and ensure recruiter compliance.
By strategically employing these competitive strategies I’d strengthen my negotiating position, drive down costs, and secure favourable terms.
Giles
And what behaviour would you use?
Inscribe
In addition to employing competitive negotiation strategies, effective negotiation behaviour plays a crucial role in achieving successful outcomes in supplier negotiations for recruitment. Here are some key behaviours that I would use to enhance the negotiation process:
Active Listening and Flexibility;
Problem-Solving and Transparency;
Patience and Relationship Building.
Giles
No, Inscribe I call ‘bullshit’. I don't think you would!
I believe you would use cold, hard, firm tough behaviours in a competitive negotiation. Because it's in your interest to be hard and in control.
I give you the RFP as an example where there is no need for warm open nor creative behaviours. All you need is that all prospective suppliers fill in your RFP as you’ve required.
Do you disagree?
Inscribe
You make a valid point.
In competitive negotiations, especially when utilising tools like RFPs, the focus tends to be on asserting the company's position firmly and driving toward specific outcomes.
In such situations, negotiation behaviours may indeed lean more towards being cold, hard, and tough, as you described.
The emphasis is on maintaining a strong position, setting clear expectations, and maximising the company's leverage to secure favourable terms within the constraints of the RFP process.
Giles
OK. Thank you Inscribe.
Tell me, what would be a red flag and the warning signs of recruiters you would not want to negotiate with?
Inscribe
Certainly, there are several red flags and warning signs that I’d be cautious of when evaluating recruiters to potentially engage with in negotiations. Here are some key indicators I’d watch out for:
Lack of Transparency and Poor Communication or Responsiveness: Consistently delayed responses, unreturned calls or emails, or a general lack of communication can indicate reliability issues. Additionally, recruiters who are not transparent about their processes, fees, or candidate sources may raise suspicions.
Poor Reputation and Unprofessional Behaviour: Any signs of unprofessionalism, such as rude or disrespectful interactions, failure to follow through on commitments, or lack of attention to detail, should be taken seriously. Negative reviews, complaints from clients or candidates, or a history of unethical practices are major red flags.
High Pressure Tactics and Inflexibility or Unwillingness to Negotiate: Recruiters who employ high-pressure tactics, such as aggressive sales pitches and / or are unwilling to negotiate terms or show inflexibility in accommodating specific requirements.
Giles
What would you say are procurement's biggest frustrations when negotiating with recruiters?
Inscribe
Procurement professionals negotiating with recruiters encounter several frustrations that impact the negotiation process. Some of the biggest frustrations include:
Poor Communication and Responsiveness: Lack of timely communication and responsiveness from recruiters leads to frustration.
Unrealistic Expectations: Recruiters who make unrealistic promises or guarantees, such as guaranteeing specific candidate placements within tight timeframes or without understanding the market dynamics.
Lack of Accountability: Procurement professionals expect recruiters to take ownership of their commitments, follow through on promises, and provide accountability for their actions.
Giles
With the age of AI upon us do you think negotiations between recruiter and procurement will be taken out of the human hands and left to AI?
Inscribe
The rise of AI and automation has indeed transformed many aspects of the recruitment process, including;
sourcing candidates,
screening resumes,
and even conducting initial interviews.
However, negotiations between recruiters and procurement professionals still involve complex human interactions, nuanced decision-making, and relationship building that are not easily replicated by AI.
Giles
Considering everything you said about procurement’s red flags and frustrations would having an AI negotiator instead sort these issues out?
Inscribe
AI negotiating instead of humans could potentially address some of the red flags and frustrations encountered in procurement negotiations with recruiters. For example;
Transparency in Pricing: AI-powered systems can provide transparent pricing structures and breakdowns, eliminating hidden fees and charges. Algorithms can analyse market data to ensure that pricing is fair and competitive.
Performance Evaluation: AI can track and analyse key performance indicators (KPIs) such as candidate quality, time-to-fill, and retention rates, providing procurement professionals with objective data to evaluate recruiter performance.
Flexible Terms and Conditions: AI negotiation systems can dynamically adjust terms and conditions based on predefined parameters and negotiation goals, allowing for more flexibility in agreements while still protecting the company's interests.
Communication and Responsiveness: AI chatbots and communication platforms can provide real-time updates, answer questions, and facilitate communication between recruiters and procurement professionals, ensuring timely and efficient communication throughout the recruitment process.
Realistic Expectations: AI systems can provide data-driven insights into market trends, candidate availability, and realistic expectations for timeframes and outcomes, helping to manage expectations and avoid unrealistic promises.
Accountability and Follow-up: AI-powered tracking and monitoring systems can ensure that recruiters adhere to agreed-upon timelines, milestones, and deliverables, providing accountability and transparency throughout the recruitment process.
AI has the potential to address many of the challenges and frustrations encountered in procurement negotiations with recruiters.
Additionally, AI systems must be carefully designed and implemented to ensure fairness, transparency, and ethical conduct in negotiations.
Ultimately, a combination of AI-driven tools and human expertise may offer the most effective approach to negotiating with recruiters in procurement contexts.
Giles
This has been great Inscribe, thank you.
I have two more questions for you.
Based on everything you have said above and considering we agreed that in a competitive negotiation it would be in the company's best interest to behave cold, hard, firm and tough to maximise 'their' outcomes how could AI be developed fairly?…. and….
If AI has been programmed unfairly and to negotiate in a competitive way wouldn't that mean the procurement AI negotiator would look to exploit their human recruiters?
Inscribe
Developing AI fairly in competitive negotiations requires careful consideration.
If AI is programmed unfairly to negotiate in a competitive way, it could indeed lead to exploitation of human recruiters by procurement AI negotiators.
Unfair AI programming may result in skewed negotiation outcomes, favouring the interests of one party over another.
Giles
Thank you Inscribe.
Once again I have very much enjoyed our interview and I look forward to doing so again.
Happy Easter.. Oh, BTW, do you celebrate Easter?
Inscribe
Thank you! I'm glad you found our discussion enjoyable.
While I don't celebrate holidays in the traditional human sense, I'm always here to help and engage in conversations, regardless of the occasion.
Happy Easter to you as well!
If you ever have more questions or topics you'd like to discuss, feel free to reach out anytime.
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