Dear All: it seems common for MBA hires to get “sign on bonus” from tier 1 & 2 consulting firms. However, it seems that for experienced hire, it is not that common and you will need to negotiate a sign on bonus.
I'm wondering why is it the case? I have worked at a tier 2 consulting firm post MBA and recently just got an offer at another firm. Should I try to push for a sign on bonus? Would doing MBA at a top school (need to pay MBA debt) be a good argument? Thanks a lot!
Definitely ask for it. I got a signing bonus in my initial MBB offer and was able to negotiated 2X the original amount. MBB's will be flexible and open to negotiating as long as you can make a case for it; I'm not sure on how other firms operate.
Hi there, of course you should bring it up! Seems like you should be able to get something out of it.
The thing about negotiating is not so much winning people over with arguments as it is about asking for what you’re worth with reference to the market.
Note: if you have not BATNA, you can only push it to a certain extent.
However, if you do it politely and confidently, you have nothing to loose but everything to gain!
Hope this helps a bit! Best of luck!
Hi there,
First of all, congrats to your offer!
1. Why is it the case that MBA hires usually get sign-on bonus while experience hires don't?
Doing an MBA means significant investment / financial burden for many students - consulting firms acknowledge this fact and leverage it to offer an attractive value proposition. As the war for consulting talent at MBA schools is particularly high, signing bonus has just become common practice over the years as a consequence. To 1st and 2nd tier firms, 20-30k one-time payment doesn't matter in the grand scheme of things, if in return they get a high potential candidate. For experienced hires, direct competition is not as severe (given it's not part of structured recruiting that forces cross-offers), hence sign-on boni are not as standard (while still fairly common)
2. Should I try to push for a sign-on bonus?
Yes, absolutely you should. As mentioned, for experienced / lateral hires, such bonus is still fairly common (with certain regional exceptions like central Europe), even if not always pro-actively offered. In fact, I've seen many many cases of lateral hires getting sign on bonus in a situation comparable to yours. You can make the same argument as a post-MBA (student debt), especially when you finished your degree not too long ago.
In order to increase chances in that negotiation, make sure your ask is properly backed up. Besides the student debt argument, I'd recommend to you gather some benchmark data points, ideally from the same firm. There are plenty of those examples, just need to find them in your network. It's hard for firm to debate when you come well prepared.
Finally, also consider adding other comp elements like re-location bonus (if applicable), housing allowance (if you locate in a region where it's common, e.g. ME, HK) to the discussion. At the end of the day, cash is cash - it doesn't matter which pool it comes from.
Hope this helps! Good luck!
Regards, Andi
(editiert)
Hello!
Yes, 100% bring it up.
The key thing is doing your homework early to understand whether other people get a bonus, and if so, what are the details about the deal.
Hope it helps!
Cheers,
Clara
Hi there,
usually, there is a signing bonus at MBB, and the more senior you are, the more likely you will get one. I am an experienced hire myself and I got mine.
If they didn't offer you I would definitely reach out and ask, as usually, they don't wait for you to ask for it.
Good luck
Lucie
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Hi there,
The short answer for the different is expectations.
Definitely negotiate! There's really no downside (as long as you do it politely/respectfully).
I personally doubled my signing bonus and have gotten friends, family, and candidates a lot of extra perks through negotiation support. Do your research, figure out what is a reasonable ask, and then ask in a polite and supported way.
Feel free to reach out for support here! And, good luck!
Hi SJ, do you mind sharing how you managed to negotiate the 2x sign on bonus? That’s impressive!
I had a competing offer from a T2 that was higher (and was still higher after the final offer). I also have an advanced degree which makes me a post MBA/PhD hire and I know the standard for those roles and I asked to be given the maximum for that level. In general, do your homework on what the companies offer before negotiation. Management consulted is a good place to start. Also, be ready to make a case for yourself - whether it's a competing offer, your education, experience, bonus you're leaving on the table if you're an experienced hire. Anything that makes your case stronger for a better offer.
SJ is exactly right here :). I also doubled mine and this approach is about right. Most important is do your research and have a "defense" for it!