Hello - need advice: how do you negotiate a retention bonus? As a % of your annual gross? Your opportunity cost (another job, promotion)?

like
Posting as :
works at
You are currently posting as works at

My advice:
Calculate the indifference curve by selecting a 2 year, 3 year, and 4 year payback period.
Do this by taking the NPV of the opportunity, which is equal to what you would consider your retention bonus total.
Take the retention bonus total and calculate it as a % of your base.
Now here is the tricky part:
Most retention bonuses are 2 years. So your 2 year calc = your 2 year retention bonus. But you have 3 years and 4 years calculated anyway, if the time horizon up for negotiation also changes.
However using the 2 year as an example: your 3 and 4 year becomes what you should shape your initial position on. I.e. instead of landing at 2 years, go in at somewhere between 3 and 4. Work from there.
From the perspective of your negotiating opposition, they will always remove a risk % from 3 or 4 years, reducing the original number you calculated (the1st numbers you came up with), because as time horizons extend naturally the risk to them forces the figure downwards.

Hope this helps as a basic starting economic model for wage negotiations

like

Great. Thanks a lot! Very helpful

Related Posts

Just got the tentative government offer_ does anyone have tips on negotiating steps when hired? I understand GS level is not negotiable.

like

Hello fishes, One of My friend having 5 yrs experience as plsql developer role.
Skill set : Oracle sql PLSQL unix. CCTC : 9.5. I don’t know whether it’s a decent pay or underpaid. What would be the expected CTC he can ask for next company? Need ur valuable suggestions. Thanks

like

What is the salary of newly joined Tax Associate in PwC IAC ?

Larsen & Toubro Infotech Larsen & Toubro Infotech

HI All,
I have a round 2 Scheduled for LTI.
1. R1 - Technical - last week
2. R2 - Scheduled later this week - Is it again a Technical Round ? Or is it Techno Managerial one?
3. HR Discussion : Currently they are saying they will fit based on my interview and skills, no specific project or location mentioned yet.
Any idea if this is happening for all..?
12.5 YOE
Azure -Senior Role
What should be the designation / band we can request for 13yoe
Larsen & Toubro Infotech

like

Sharks, could you provide rough salary estimates for Data scientist roles with 5-7 yrs of experience?
Azure python ML SQL

like

I have selected for the senior Linux Sysadmin role in Oracle, what could be the salary expected for this role, current CTC 15 LPA and YOE 15+

like

Does PwC provides joining bonus

like

New/pivoting into HR! 👋 Currently working as a TA Coord with a little entry level work in HR Ops prior to this. Is there a SHRM link, reliable test, or method of shadowing the various parts of HR that will provide a sample of the work, thinking, and day to day experience of each group? I didn’t go to school for HR and therefore haven’t had the opportunity to sample HR Ops. vs. TA vs. Comp vs. Benefits vs. Payroll, etc. I know work experience is the best barometer, but what can supplement this?

like
like

Hi all.

Please suggest on the below:

YOE- 2.8YEARS
TECH SKILLS- .NET
CURRENT OFFER-10 LPA

What should be a good number to ask PWC india as an EXPECTED CTC?

Please suggest on this

like

Does Walmart provide Joining Bonus?

Hey all,

YOE - 6 Years
Tech - Frontend Developer (Angular)

I have offers from 2 companies, same pay and almost same benefits.

Software AG (GCS Department) - work will be on Agile Apps (No Code/Low code)

Larsen & Toubro Infotech - Work will be on a client (Schneider) project

Which one would be better?
Please help

like

Salary range of Associate Consultant in KPMG?

like

Nothing like the named partner who you *know* is actively opposed to associate salary increases (despite living in a market where the COL has significantly risen and outpaced general inflation) telling you about how annoying it is to winterize her 4 mega luxury sailboats she has on her waterfront dock. 🙄

likefunnyhelpful

I am looking for VP position in HSBC. What should be salary range?
HSBC India
Current ctc-35lpa
Yoe- 14.5
Looking for program /Delivery roles.

like

Need help assess an offer from #PwC. Director of M&A IT (DDV - Deliver Deal Value). The offer has base salary (based on cohort - Tier 3 Home City) and sign-up bonus, but does not have the annual bonus structure for Director level at #PwC. HR lady said that they will give you that when you start. I would like that now (written format). She told me verbally the percentages but I do not recall them. Anyone from #PwC has that info in a PDF document?

Any documents? Much appreciated.

like

What’s the top end of SM salary on advisory in Deloitte? This is at MCOL

like

canada vs. US salaries at Amazon? I’m interviewing for a role at amazon. Any insights on if the salaries advertised for US roles are comparable for Canadian roles? I don’t want to give my range - in fear that I’ll undersell myself. Any insights? (It’s for a senior proposal manager role -10+ years experience)

like

How good Publicis sapient for java developers and they are offering associate technology L1 and what package i will expect for 2.5year yoe?

like

What’s the hourly pay for others as a quality transaction specialist? I’m at $19.18 and feel it’s low for the inflation rate. HR and leadership refuse to give the salary range definitions and will say if I’m either in the low or median range of pay.

like

More Posts

Hello! I’m new at PBL learning. Where can I find already prepared lessons? I’d like to use other teachers’ successful lesson plans before I try to create my own.

like

I am a business development manager in a small biotech incubator. My end goal is to work in commercial, BD or operations within a big pharma/biotech company. What would be best for me:

1) stay in my company to quickly become BD Director and then exit (however my learning opportunities within my current company might be limited)
2) go do consulting for a few years
3) any other recommendations?

Thanks!

like

Is Citi a dysfunctional organization, true or false?

like

Hi,
Joining SAP labs, Bengaluru on 8th of August.
Looking for a share of accommodation. Female preferred.
Thank you..

like

Hi Fishes,

I have an offer of around 39 LPA + bonus and my wife is holding an offer of 32 LPA in India. Now I have received another offer from a fintech organization in Berlin, Germany who are providing me 69k Euros as base salary + 5k Euros as RSU and also an on call support of 5k Euros annually + complete relocation assistance package. My wife currently doesn't have any offer for Germany and might need to search for a job after reaching there. Is it worth? Need your suggestions please.

like

I am having 4 y if experience in testing.Is it possible get pr from Canada ?

like

Hi
I am seeking out opportunity in Data engineer for Europe/ UK location, let me know if anyone can refer.

And my husband is seeking for job in SEO, digital marketing or product marketing domain, let me know if any leads available.

Thanks alot in advance

like

Guys if you want any other topics just comment will try to share the same with you :D

I am applying for Us tourist/business visa and I have a consular appointment in Delhi at 9:40 am , any guidance to hoe much time this can take as I want to book a flight from Delhi back to Mumbai ?

like

I'm still mad about Theon... 😒

like

Does Deloitte cover your whole gym membership?

likehelpful

My utilization is 90% but all of my clients are small jobs. Does that look worse than someone who works on the larger, higher revenue generating jobs with all else equal (utilization/performance)?

like

Thoughts on GILD for a medium term hold?

like

Has anyone done an MPhil+DPhil in eg economics in Europe? What are admissions standards like at Oxford, Cambridge, LSE?

likesmart

I wish people stopped asking me if I were a realtor when I tell them I work in real estate development. Why is it so hard to understand the difference?

likefunny

Does anyone have experience with Bain’s Innovation & Design track? Interviewing now and trying to learn more :)

like

Hot take: I like our decentralized staffing model because I can work in any industry and it creates less of a “class divide” between offices

like

Kindly recommend some self help books!

like

Hi Fishes,

Could you please share CGI benefits for lead analysts. Recently joined CGI.

like

HSG pain level vs. endometrial biopsy? I have an HSG this week and did biopsy last week. Biopsy was brutal! I overheard a nurse telling someone else that HSG is actually more painful but I can’t even imagine… really nervous now.

like

Additional Posts in Consulting

Anyone with experience working for Bridgewater Associates, LP? Had a recruiter reach out for a BA/PM role. Associate level/experienced hire, on portfolio transformation team.

How’s the whole experience? Comp package, benefits, work life balance, etc.

like
like

Does health insurance cover therapy? If so, how much would you usually pay out of pocket and how much would the insurance cover?

like

So the President-elect committed millions of dollars from taxes in a state soon to not be governed by his VP-elect to keep 1000 jobs from going offshore. So, the state is paying the workers indirectly

like

Are your firms still experiencing big layoffs?

like

I am about a year into consulting. Do all firms have a bench and do you have to find projects on your own?

like

Training at Deloitte: how much budget and hours do you get each year for training & certification? Do most of firm trainings happen at Deloitte University? At BAH they give you 40 hour/yr for training

like

What are your book recommendations?

like

READY TO PARTYY!!!

like

Who else is playing the drinking games tonight #presidential-debate #standupcomedy

like

Does anyone have good book recommendations which talk about varying leadership styles?

like

I work for a small company and my manager got fired this morning...

like

What are the weirdest reasons you have heard for people being laid-off? I have heard someone getting laid off because they missed submitting their time-sheets for 3 times in a year.

like

Recommendations for a keyboard? I’m quite illiterate in this topic, and I ordered a random one off Amazon and it’s quite noisy, and not very ergonomic

like

Best rotational programs for medium tier UG

like

Any solo dinner / delivery recs for Seattle?

like

Do you keep PTO stocked up or do you usually have it all used?

like

Planning to do a PRM or FRM qual. How useful is it to move from Big 4 Risk and reg consulting to industry? Finding it hard to get anything other than non-PM roles

like

Notice there are so many people with debate experience in consulting. Kinda impressed. Any highly recommended books related to debate or communication in general?

like

what does the bonus range look like for a new band 4 at bank of america?

like

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the
Fishbowl app

See what’s happening in your industry
from the palm of your hand.

A phone with Fishbowl app

Scan your QR code to download
Fishbowl app on your mobile

Download app

Sign up for free to view this conversation on Fishbowl

By continuing you agree to Terms of Use and Privacy Policy

Already have an account? Log in

Sign up for free to continue using Fishbowl

By continuing you agree to Terms of Use(New) and Privacy Policy(New)
Messaging rates may apply

Already have an account? Log in

For account settings, visit Fishbowl on Desktop Browser or

General

Legal