Its 2012 and I’m coming to realize that my journey with my current company is coming to an end. I am in a cul-de-sac (Based on the book the Dip when you realize your career at an organization is going nowhere and no amount of work will amount to success) and if I intend to move up the corporate ladder then I need to make a change. It’s a tough decision but I see the writing on the wall and I think it’s time to take my career in my own hands.
Its January 4 months before performance bonuses and as with most organizations Q1 is generally when hiring starts with a new budget. I’ve tenatively put my resume out to test the water, in hopes of finding a better opportunity. I am not overly stressed because I am still employed (I’m just not happy with my current employment). First it’s the recruiter that call, with contract to hire jobs, I politely decline (im not looking to contract at this point, I want a career move) Finally I start getting calls from some promising companies that have my intrest. Its now late January and the interview process is about to begin. If any of you can relate to this then you understand the stress involved with job hunting. Its not just about finding a new job its about finding the right job for you. No one likes change but sometimes change is necessary, the question is -Who do we use this change to make it profitable for all of us ?
What is a Sign on
No longer just for star athletes, sign-on bonuses have become commonplace. Their usage now extends to nearly all level of employees in all walks of life, especially when unemployment is low and top talent is hard to find. Given to new employees who have just joined the company, this award serves two purposes: to establish goodwill and to buy out any compensation "left on the table" from a previous employer. The second purpose is important to remember. Before joining a new company, be sure to account for every kind of compensation program in which you participate. If you are expecting a bonus in a few months, ask your new employer to buy you out of it. If you have any stock options, particularly options that are in the money, ask the employer to buy them out (either in cash or new stock options). Don't forget to include profit-sharing bonuses or defined contributions (for example, a 401(k) match or an Employee Stock Options Program (ESOP)) made to your retirement account. Remember, a sign-on bonus, at a minimum, is to keep you whole as you trade one set of compensation programs for a new one. Medium to large signing bonuses may be paid over a period up to a year to protect the company's interests. (www.salary.com)
How to negotiate a starting bonus
My father once told me that you fail 100% of the things you never try. As I got older I came to realize the wisdom in his words. A question not asked is no 100% of the time, so we must learn not only to ask the question but the best way to do it. In life its all about the presentation, how you present something has an impact on how someone receives it. When dealing with money or in our case as starting bonus, the timing and method of asking is critical to success. Before the interview process you should already know what, your bonus requirements are. Remember that preparation leads to opportunity. So, do your preparation the same way you approach your job interview. Research the median salary for the position your applying for (A great resource for that is glassdoor.com). Calculate how much you are losing by leaving your organization and what kind of impact your role makes for the new organization. Finally, be willing to negotiate, you will be surprised as what you can get by just asking. In my experience, the negotiation starts when you receive the initial job offer. This is the window of opportunity to ask for a higher salary as well as a starting bonus. It is best to tell your potential employer exactly why a signing bonus is in order. Is it to cover moving expenses or the loss of income from a trailing spouse? Will you be forfeiting vested stock option upon resigning from your current job? Are you giving up an annual bonus by taking this job? Or does the change in employment require a different mode of transportation, like a car, for example? Offer a range for the signing bonus rather than a set number. Middle managers, for example, receive signing bonuses anywhere between 5 percent and 10 percent of their base, reports a survey by World at Work, a nonprofit organization on compensation and benefits.
Let’s take this step by step:
Quote from "Yvonne LaRose, career and professional development coach, Career and Executive Recruiting Advice"
1. Entitlement to a signing bonus: The research
I did on signing bonuses indicates these are usually
offered for positions where the need is high and the
available talent is scarce. These types of bonuses are typically for those who will be with the company for at least one year and appear to be committed to staying on longer. It appears you are indeed entitled to one. Otherwise, there would be no discussion about it.
- Typical Amount of Bonus: In my research, I
could only find limited information about signing
bonus amounts. The data was from 1999 and the sampling
was relatively small (less than 1300 respondents). The
average bonus range was $1,000 – $2,999. (From
American Institute of Graphic Arts, Resources (HTML version) - Time of Payment: I did some checking around
in various places on this issue. Different companies
have different manners of paying signing bonuses. Some
pay the amount as the first salary check. The majority
of companies appear to pay the amount out over time,
but they still vary as to how much and when. The
standard seems to be about one-third to one-half after successful completion of 30 days or some sort of probationary period. The second and succeeding installments are paid upon the successful completion of another milestone. This is usually another six months or up to one year without break in service.
You should also be aware that if you leave before
completing your time commitment, you may be expected
to repay a prorated amount of what you received in
anticipation of staying with the company. This may be
part of an employment agreement you sign.
Just remember that by not asking you are possibly leaving money on the table and all of us want to be fairly compensated for the work we do.
Thanks for reading
Thank you for reading this post . I hope you enjoyed them. Please let me know what you think in the comments.
