Salary Negotiation

salary salary negotiation
New answer on Nov 15, 2021
7 Answers
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Anonymous A asked on Nov 13, 2021

Hi!

When is the best time to negotiate parts of the offer? I'm assuming the best process is as follows, but want to confirm / get any insights:

1. HR from consulting calls with offer, and I listen and take notes. I ask for time to think about it.

2. I call back and counter offer. They take the my counter back to the team.

3. They come back with final decision.

4. I accept or decline.

Also, are there any good negotiation tactics that works well? I've searched far and wide on Google, but now I feel I have too much information and don't know which is the best advice.

Thank you.

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Pedro
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replied on Nov 13, 2021
30% off in March 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA

Honestly, I can't figure out what is the alternative option. If you want to negotiate, you have to do it AFTER you receive the offer and BEFORE you accept it (or decline it). And the time before you receive the offer and you give your final answer shouldn't take months… so there isn't much to think here.

Regarding the process, the point 2 may not be what you are expecting. They will ask for your reasons to ask for something different (and what exactly you are asking) but may reply immediately that they won't change their offer. 

Sign up bonus and relocation support may be up for negotiation, depending on your specific circumstances and your “leverage” (i.e., alternatives), but don't have high expectations.

Moreover, after 1 year, it's up or out. In both cases whatever you negotiated was a very short term benefit.

P.S. Assuming we are talking here about strategy consulting firms. This doesn't apply to management consulting or corporate roles.

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Anonymous A on Nov 13, 2021

I've received advice that you negotiate immediately after receiving it (without asking for time) and once they say whatever, you ask for time to think on it. And how come it's different for management consulting and in what way?

Pedro on Nov 13, 2021

You can reply wight away, or after thinking a while. I don't think it makes any difference. If you can reply right away, do it, but be prepared for argueing why you need something different. Regarding the difference of strategy vs. management consulting. MBB and Tier 2 have well defined salaries (which means no room for negotiation). Big4, in their management consulting practices, have rangesm which means some room for negotiation.

Francesco
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Content Creator
replied on Nov 14, 2021
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching

Hi there,

I think the flow you presented is reasonable.

The base salary is normally non-negotiable in strategy consulting. However, you may be able to negotiate the signing/relocation bonuses or the seniority you join if you have valid reasons.

In terms of general tactics, I would recommend Never Split the Difference by Chris Voss, which is a great book on the topic.

Best,

Francesco

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Andi
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replied on Nov 15, 2021
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | #1 for Experienced Hires

Hi there, 

flow makes sense, but wouldn't look at it as a static, linear exercise. Especially steps 1-2 can be quite iterative.

In terms of tactics, would like to add to the comprehensive answers of the other coaches that any attempt to negotiate should be grounded in substance / backed up. E.g. when you try to negotiate re-location allowance, you should be able to produce a valid need on your end (→ why will standard package not be sufficient?). Don't just negotiate for the sake of it, because in the grand scheme of things, 5k up or down won't move the needle for you if you decide to stay on for a bit, while a bad attempt can cost you the offer (seen that happen twice before).

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Hagen
Expert
Content Creator
replied on Nov 14, 2021
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years

Hi there,

First of all, congratulations on the (alleged) offer!

This is indeed an interesting question which is probably relevant for quite a lot of users, so I am happy to provide my perspective on it:

  • Generally speaking, different aspects of the offer might have different optimal point of time during the interview process. For instance, I would advise you to clarify (at least directionally) the position you are interviewing for before going into the interviews since the requirements might slightly change or increase.
  • Regardings negotiating your salary, however, both your approach and the point of time during the interview process seem to be right. However, please bare in mind that with strategy consulting companies, you will most probably have little to no room for negotiating your fixed or variable component of compensation. You might still squeeze out a signing bonus or an increased relocation bonus, but this will most probably be about it.

In case you want a more detailed discussion on how to best negotiate different aspects of your upcoming offer, please feel free to contact me directly.

I hope this helps,

Hagen

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Agrim
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Content Creator
replied on Nov 13, 2021
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting

You can negotiate only after you receive the offer.

Although you need to consider that typically most top-tier consulting firms have fixed slabs and there i not much room for negotiation of the base pay or bonus. Rather you might want to negotiate ancillary items such as relocation bonus or signing bonus.

Typically you don't need to respond back immediately since most of the time the offer from consulting firms will be in the form of a letter or a document.

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Adi
Expert
Content Creator
replied on Nov 14, 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

Your flow is fine but remember MBB salaries are fairly standard and well known in the market. To negotiate make sure you have following handy:

  1. Do you have clear value that you can bring and that justifies higher pay (than what they have offered) or are you very near making promotion to the next level
  2. Do you have other similar offers to compare against

Focus on win-win, be polite and supportive during the process.

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Ian
Expert
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replied on Nov 14, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

That's about right! Whether this all happens via call, or emails, or some combination though is another consideration.

In general, it's easier to negotiate against “peripherals” such as signing bonus.

Good luck!

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Pedro gave the best answer

Pedro

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