Negotiating a sign on incentive/bonus

lendaddy · 11-03-2013, 09:39 AM

It looks fairly likely that I will be changing jobs for only the third time in 20+ years. I love the new company and really really really need to get out of the public sector.

The new company surprised me a bit by making me an offer at the interview table which included some pretty good variations from their normal scales (bonus eligibility right away, in the top 80-90% of the loose wage scale, 2+ wks vacation right away, etc... ).

I will however be walking away from some decent sized and soon to be vested accounts at my current employer. I am willing to accept this for the quality of life improvement I expect but am thinking I'm in a decent position to ask for a sign on bonus.

Given the above info you can surmise I haven't had to negotiate from this side of the table very often... So if any of you can offer advice regarding the appropriateness, norms or tips on tact I would appreciate it.

I do already have a written offer but I don't want to offend the new employer either. I am thinking somewhere in the 10% of salary range? Or is it more wise to ask if they would be willing to include a bonus (after I explain my pending forfeitures) and let them float a number(or not)? Any other thoughts? Thanks..

masraum · 11-03-2013, 10:29 AM

There are a couple of pretty long, extensive threads on negotiating salary/benefit/bonus stuff when getting a new job. I had one a couple of years ago, and linked to a couple of others in my first post in that one.

Salary negotiations

Also, 2 weeks of vacation seems pretty standard. I've never worked anywhere that didn't start you off with 2 weeks of vacation. My current company started me off with 4 weeks of vaca plus a little over 2 weeks of holiday and personal time not including sick time.

You might want to check out my previous thread, I think there's some really good info in it.

lendaddy · 11-03-2013, 11:25 AM

Quote:

Originally Posted by masraum

There are a couple of pretty long, extensive threads on negotiating salary/benefit/bonus stuff when getting a new job. I had one a couple of years ago, and linked to a couple of others in my first post in that one.

Salary negotiations

Also, 2 weeks of vacation seems pretty standard. I've never worked anywhere that didn't start you off with 2 weeks of vacation. My current company started me off with 4 weeks of vaca plus a little over 2 weeks of holiday and personal time not including sick time.

You might want to check out my previous thread, I think there's some really good info in it.

Excellent, thanks much

lendaddy · 11-04-2013, 10:31 AM

Thanks again for the resources, I submitted my counter offer early this morning and hope to hear back shortly. Interesting and fun times...

Seahawk · 11-04-2013, 10:59 AM

Good luck. I really don't think the new company will care much about your being soon to be vested in the other company. I wouldn't be if I was them: not my problem.

Be creative, however, don't just focus on a signing bonus. I know it depends on the type of job you are being offered, but think about incentives you can offer them, ask for a piece of the business you can bring in.

I just sold a company and then started with the company that bought me in July, began work in August. While salary was important, in the end getting a piece of the new business was my goal. I negotiated only on what percentage of ownership I would gain from bringing in new business in my sector.

Look at the negotiation from a different perspective.

Again, good luck!

MotoSook · 11-04-2013, 01:32 PM

I was in a similar position. Quality of life was a big factor, but that didn't stop me from negotiating for a salary increase that is common for changing jobs. I also was honest about my pending payout with the old company.

In the end, they increased the salary, gave me another week of vacation and a signing bonus to ease the pain of walking away from a pending bonus.

If you are good and they want you, they will negotiate.

For someone who has been working a considerable time (not a recent grad), starting out at 2 weeks vacation is a little insulting. You bring hard earned experience to a company that should allow you to slot in at a level comparable to someone who's been there for years.

You have to sell yourself...honestly state what you are bringing to the new company...if you know your worth it will be easy to ask for it.

lendaddy · 11-04-2013, 02:11 PM

Thanks, I appreciate what you're saying. I did just hear back from them and it sounds like they are on board with a bonus but want to dance a little. They want to know how much I am looking for. I am not looking to get a windfall here, but was thinking 10-15% of first years salary.

on2wheels52 · on2wheels52's Garage

ANOTHER new job Joel? That's it, I'll be saving my magazines for someone else from now on

Jim

lendaddy · 11-04-2013, 03:47 PM

Quote:

Originally Posted by on2wheels52

ANOTHER new job Joel? That's it, I'll be saving my magazines for someone else from now on

Jim

Ha, good stuff. One of these days I'm going to pop in and it'll be all down hill from there

MotoSook · 11-04-2013, 07:24 PM

A minimum $10k signing bonus plus all or a % of what you are walking away from and 3 weeks vacation.

I'm guessing at your level of pay based on what I know about your pass business venture, thus $10k is probably fair for just a signing bonus. They should know what you stand to earn if you stay with your current company. Tell them you don't expect it all, "but that's the number." Start from there. The extra week of vacation is probably the easiest thing for them to do.

Quote:

Thanks, I appreciate what you're saying. I did just hear back from them and it sounds like they are on board with a bonus but want to dance a little. They want to know how much I am looking for. I am not looking to get a windfall here, but was thinking 10-15% of first years salary.

MotoSook · 11-04-2013, 07:28 PM

If they can't afford what you want now because of budget limits, negotiate your first merit raise...but first ask what the average merit raise for them is, then build from there.

Establish your worth. Worst they can say is "no."

aigel · aigel's Garage

I would worry that they already made you a written offer. Did you agree to any terms for that, before they went through the hassle of writing it? Every job that I got we always negotiated the terms ahead of time and the written offer was crafted once the terms were mutally agreed upon. I would NOT go back with more requests, if that is what you did. If they just sent it to you without negotiations, then by all means, go for it. That said, go for it on the phone, not in a written counter offer. Much more personal that way.

Do you only have 2 weeks vacation now? Or more? If you have more, ask for a match at the new company. This is often available, especially to mid-career folks.

Finally, in terms of the size of the sign-on bonus, it probably varies by industry and your base. 10-15% is adequate, if it is an industry with competition for talent.

HTH,

George

onewhippedpuppy · 11-05-2013, 03:16 AM

$10k sign on bonus seems pretty standard. Most companies are very willing to negotiate vacation vs bonus or salary because it's not cash out of pocket, I've had multiple conversations with HR on that topic (as a manager not a prospective hire).

aigel · aigel's Garage

Quote:

Originally Posted by onewhippedpuppy

$10k sign on bonus seems pretty standard.

Doesn't this depend on the base salary?

G

lendaddy · 11-06-2013, 12:58 PM

Thanks for all the info/advice guys. Just got off the phone and they agreed to a 10% sign on bonus, I start in 12 days.

I'm really excited....

lendaddy · 11-06-2013, 01:21 PM

Quote:

Originally Posted by NotaBRG

Congrats!

I am interested to hear how your current employer responds.

There is nothing they can offer me, it's a local government entity. Everything is written in stone. They will want me to stay, but unfortunately they have no room to negotiate.

masraum · 11-06-2013, 01:45 PM

Outstanding! Glad it worked out for you.

I've never liked the idea of a counter-offer myself.

McLovin · 11-06-2013, 02:31 PM

Congrats, man!

They're lucky to get you!

Oh Haha · 11-06-2013, 04:14 PM

Congrats!!!

Can you share what the company or job is?

lendaddy · 11-06-2013, 04:28 PM

Quote:

Originally Posted by McLovin

Congrats, man!

They're lucky to get you!

Thank you, I really appreciate your saying that.

This will be the first time in my life that I will be at a company/organization "on the rise". I have been managing places in crisis-mode for the last 20 years and honestly don't really know what to expect.

I don't want to share the company just yet but I''l be on the west lakeshore here in Michigan and it's a production management gig (in general). The company is absolutely killing it over the last 15 years and advancement is wide open. This sounds cheesy as hell but I honestly feel like I can breathe deeper.

The next several days at my current place will be rough, I had been working really hard to improve things there and help with retention. This will not help attitudes in that area.

I'm not the self-important type so I know they will hardly remember my name in 6 months, but it won't be good for a bit.