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How to negotiate sign on bonus & relocation cost?

Sign on Bonus
New answer on Sep 12, 2023
5 Answers
475 Views
Anonymous A asked on Sep 02, 2023

Dear all, I have received an offer from a tier 2 firm in Asia (joining as a manager / experienced hire). Would need your advice on how to negotiate a better package on 2 items:

(1) Relocation benefit:

Family reason has been a strong motivation for me to relocate, and I have strengthened this in the interview. Considering this, can I still ask for a relocation package? What is the consulting industry practice - is it usually a one-off benefit?

(2) Sign-on bonus:

This is a bit tricky. From what I understand, a sign-on bonus is not common here. Any tactics on how to negotiate on this? Should I discuss this with the HR, or the partner?

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Best answer
Cristian
Expert
Content Creator
replied on Sep 12, 2023
#1 rated MBB & McKinsey Coach

Hi there!

Happy to provide a perspective. 

(1) Relocation benefit: Family reason has been a strong motivation for me to relocate, and I have strengthened this in the interview. Considering this, can I still ask for a relocation package? What is the consulting industry practice - is it usually a one-off benefit?

Yes, you can still ask for it. It's usually a bulk sum that you receive right at the beginning. Prepare for the discussion with HR by getting an estimate of what you expect the costs to be. Tell them that you can provide invoices / receipts to justify that amount. 

(2) Sign-on bonus: This is a bit tricky. From what I understand, a sign-on bonus is not common here. Any tactics on how to negotiate on this? Should I discuss this with the HR, or the partner?

If it's something that they don't typically do, then it's rather likely that it won't work. If you have other offers, that gives you better leverage. Also, since you're applying for a more senior position, that gives you again more leverage. Have a discussion with HR around ‘what could be done / what needs to happen… for you to receive a signing bonus?’ and see what they say.

Best,
Cristian

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Francesco
Expert
Content Creator
replied on Sep 03, 2023
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success (➡ interviewoffers.com) | Ex BCG | 10Y+ Coaching

Hi there,

Congratulations on the offer! In terms of your questions:

1) Family reason has been a strong motivation for me to relocate, and I have strengthened this in the interview. Considering this, can I still ask for a relocation package?

You can still ask – worst case they will say no. If you have real costs of relocation, that should be possible.

2) Relocation package: is it usually a one-off benefit?

Yes.

3) Sign-on bonus. A sign-on bonus is not common here. Any tactics on how to negotiate on this?

If they don’t offer it as office policy, most likely that’s not an option. But you can still ask. 

The best way to negotiate is to have an “opportunity cost” of another offer and leverage it. If you don’t have alternatives (either other companies or your current employer) you won’t really have much leverage.

4) Should I discuss this with the HR, or the partner?

I would do so with HR.

Best,

Francesco

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Ian
Expert
Content Creator
replied on Sep 03, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

First of all, consider hiring a coach for this!

Just as an example, I negotiated my BCG offer to get $20k USD more in my signing bonus….I've helped negotiated a total of $750,000 USD for my candidates/friends/family over the past several years.

1 coaching session could have an immense ROI (in constrast to a clunky/incomplete written Q&A)…

(1) Relocation benefit:

Yes, you can ask - it is usually one off

(2) Sign-on bonus:

Yes, you should ask. There are ways of doing this right (and wrong) and depends on the context. I'd need to actually speak to you to understand more about your current situation, how the company has been speaking with you, what the current offer is, etc.

Again, if you actually want to maximize your offer, then invest in a coaching session to get negotiation support.

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Andi
Expert
replied on Sep 02, 2023
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | #1 for Experienced Hires

Hi there,

for most firms, both components can typically be negotiated, especially when you're an experienced hire (anything post MBA at least).

In general, when you try to increase, always do so based on data. Suggest you do a bit of research and find relevant benchmarks you can then present to the conversation..

  1. Comps from candidates you may know with the same firm in the past
  2. Comps from competitor firms in same geography
  3. For relocation: cost-based angle, esp if you have to factor in container-shipping etc.

Feel free to reach out via DM to share more details on location and firm so I can give more specific advnice. I used to relocate to an Asian BCG office after my MBA and have a good view on common practices across the firms in South East Asia and East Asia in general. .

Regards, Andi

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Sophia
Expert
replied on Sep 03, 2023
Top-Ranked Coach on PrepLounge for 3 years| 6+ years of coaching

Hello,

Congratulations on your job offer!

Regarding the relocation package, you can absolutely still ask for one even if you mentioned you had a strong desire to relocate for any reason - it's still going to cost money, after all. It is usually paid as a one-time bonus.

Regarding the signing bonus, this is usually up to firm policy - either a firm offers them or it doesn't. I would discuss this with HR.

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Cristian gave the best answer

Cristian

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