Art of negotiating salary package

Hi,

1. Base salary

• Not sure where you got the information that base salary is tied to ranking
• At MBB - base salaries are fixed for respective positions/roles. Your performance on the job then determines your variable bonus

2. Relocation bonus

• Sure you can ask for it politely/nicely
• Worse they can say is no

3. Sign-on bonus:

• Yes you definitely can ask for sign-on bonus, if you are coming in as a post MBA role then typically post-MBA does have sign-on bonus, although firms may try to avoid this for experienced hires that don't come in through OCR

Let's address your questions regarding offer negotiation:

Base salary in consulting firms is typically tied to specific rankings or levels within the firm. While there may be some flexibility within each level, the base salary is usually a fixed amount or falls within a narrow band. Asking for a 3-5% increase can be seen as reasonable, especially if you have relevant experience or exceptional qualifications. However, it's important to approach the negotiation tactfully and provide supporting evidence for your request.

When it comes to relocation, if the company is already providing comprehensive support such as housing, visa assistance, and house moving, it may be challenging to negotiate for additional subsidies or flight tickets. However, it's worth discussing your specific circumstances and the need for occasional travel back to your home country. You can present a well-reasoned case for why this is important and see if the company is open to providing some form of support.

Sign-on bonuses can be negotiated based on various factors. Your reasons for requesting a sign-on bonus seem appropriate. Holding an MBA degree and having student loans can be valid justifications for seeking additional financial support. Additionally, if your previous role had a higher base salary, it can be reasonable to request a sign-on bonus to bridge the gap. Lastly, if your experience exceeds the typical requirements for the role, it can be another point to support your request. However, keep in mind that the company's policies and budget constraints may influence their willingness to provide a sign-on bonus.

In any negotiation, it's crucial to approach it professionally, demonstrate your value, and provide supporting evidence for your requests. It's also important to be prepared for potential trade-offs or alternative solutions if the company is unable to meet all your requests. Remember to maintain a positive and collaborative tone throughout the negotiation process.

I hope this guidance helps you in your offer negotiation. Good luck, and feel free to reach out if you have any further questions!

Hello!

Under each specific ranking, is the base salary usually a “fixed amount”, or would it be a “band”? Would asking for a 3-5% increase be seen as too aggressive?

The band depends on if you come in as a Consultant 1 or a Consultant 2, for example. If your position is defined at this point, IIMO trying to negotiate your base is useless.

Do you think it is possible to ask for a subsidy (or a fixed number of flight tickets) to transport between the home country and the headquarter?

As other coaches have mentioned in the previous thread, it would be good if you can calculate your relocation expenses and share a detailed breakdown with an HR. The expenses are more likely to be approved if they have a clear financial justification.

Do you think these reasons seem appropriate?

• MBA degree holder; held student loan - no, many candidates have an MBA and / or hold a student loan
• My previous role's base salary was X% higher (note: don't have a counteroffer right now) - more likely to have an impact``
• I have X years of more experience than this role typically requires - just no
• Need to travel back to home country a few times a year (assume they don't agree on the relocation bonus) - most likely no

Good luck with your negotiations,
Nick
 

Sure, let me take them one by one.

1. As many experts pointed out, base salary is quite tied to ranking. Under each specific ranking, is the base salary usually a “fixed amount”, or would it be a “band”? Would asking for a 3-5% increase be seen as too aggressive?

It's fixed with most top consulting firms based on the role that you're applying for. 

2. Relocation bonus:

I'd recommend you approach it more top-down and start estimating all the categories of cost you're going to have with the move.

Be honest and create an overview. Then use that overview you negotiate the relocation bonus (if still necessary).

3. Sign-on bonus:

All these sound fair. Indeed, if you don't have a counteroffer, you don't have a lot of leverage, so tread carefully. 

Best,
Cristian

Hi there,

Q1. As many experts pointed out, base salary is quite tied to ranking. Under each specific ranking, is the base salary usually a “fixed amount”, or would it be a “band”? Would asking for a 3-5% increase be seen as too aggressive?

Consulting firms usually have salary bands per role. While top consulting firms like MBB are quite rigid with this, other tier-2 (like Big4) offer some room for negotiation. When I joined PwC, I managed to negotiate a 17,5% over their regular band for the position I joined.

Q2. Relocation bonus

Estimate high level costs for this and ask. Some firms have policies on this while some other never do it. At least you should try.

Q3. Sign-on bonus

The reasons you listed sound very valid for me to negotiate the sign-in bonus. Also having other offers would give you extra leverage.

Good luck with the negotiations!

Alberto

—

Check out my latest case based on a real MBB interview: Sierra Springs

Hi there,

Best advice: Get a coach.

Sure, you can do your taxes yourself and save $300. But your tax advisor knows about $3k that you can save that you would miss.

You don't know what you don't know. Get an expert to help you squeeze out everything you can and optimally negotiate (even with our answers here, HOW you negotiate is critical as well)

1. As many experts pointed out, base salary is quite tied to ranking. Under each specific ranking, is the base salary usually a “fixed amount”, or would it be a “band”? Would asking for a 3-5% increase be seen as too aggressive?

Usually a fixed amount w/ performance bonus - but depends on the firm!

2. Relocation bonus:

I am moving to a new country and the company is already providing me with relocation support (e.g. housing, visa, house moving, etc). Do you think it is possible to ask for a subsidy (or a fixed number of flight tickets) to transport between the home country and the headquarter?

Yes.

3. Sign-on bonus:

Do you think these reasons seem appropriate?

Yes, but it's too many! You need to pick the most impactful/persuasive ones. Then HOW you explain them is critical as well.