Q & A Table of Contents
Negotiating My Salary — and Signing Bonus
From: Abhishek, Chennai, India
Question: I am relatively comfortable negotiating my salary. However when it comes to negotiating my
signing bonus, I have no experience nor am I comfortable asking for it. What are strategies and tips I
could use while negotiating both salary and signing bonus?
I am relocating to another city and have made it through 5 rounds of interviews for a managerial
position.
Response: Negotiating your signing bonus has a lot in common with doing a good job of negotiating
your salary. In each case one of the most important things you must do in advance is learn everything
you can about the normal range of salary or bonus for someone with your qualifications being hired for
the kind of position in the company, in the local market (particularly in the same business sector),
and in the broader markets across your country and in the industry globally.
When it comes to your reluctance to discuss signing bonus, one of the critical things is to look at
yourself in the mirror and say “ You’re entitled.” If you negotiate with yourself about your right to
pursue a signing bonus, one of you (you or yourself) is bound to lose. If you negotiate with your new
employer, there is still room to bargain.
You also need to have an understanding of what kinds of incentives are important to you — and why.
For example, would you be better served if your signing bonus were money, subsidized housing, a car, a
great office, subsidized further education, or other things? One aspect you might consider is whether
any of those possible bonuses gets better tax treatment even though the cash value might be the same.
When you understand the relative importance of each of these for you, you will feel more confident
about pursuing your interest.
A company that has had you go through five rounds of interviews and is about to make you an offer has
demonstrated they take their selection process very seriously — and their choice of you is also
indicative that they place a high value on your services. Keep this in mind as you consider how to go
forward with your pursuit of your signing bonus. In effect you need to reflect on who needs what from
whom, who wants what, and whether either party has a greater need to satisfy the other. If you
consider these issues before negotiation, you will be better prepared to act wisely.
You need to consider your BATNA (Best Alternative To a Negotiated Agreement) -- what options are
available to you. The same question must be considered in the case of your new employer. And you
must also take a look at whether your current job, location, or employer is an attractive alternative
that should be kept alive in case things don’t go the way you hope in the new place. Who knows, when
faced with your imminent departure, your current employer might offer you better pay and conditions —
and even a retention bonus.
Keep your eye on the alternatives, remember that you are entitled to pursue your interests, and
prepare well for any negotiation you undertake.
Good luck,
Steve
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