Signing bonus and relocation package

Hello there,

Congratulations on your job offer! 

I just want to clarify that even though you are an MBA graduate if you are not a target school MBA (e.g., INSEAD, LBS, Ivy league schools in the US, etc.) the signing bonus and relocation packages are different.
 
Here are some suggestions on how to negotiate your signing bonus and relocation package:

Signing Bonus

1. Do your research. Find out what other companies are offering MBA graduates from your university in Dubai. You can do this by talking to your classmates, friends, alumni, and other professionals in the field. 
2. Be prepared to walk away. If the company is not willing to offer you a fair signing bonus, be prepared to walk away from the offer. There are other companies out there that are willing to pay top talent.
3. Be confident. Remember, you are a valuable asset to the company. You have an MBA and you have experience in the consulting field or other relevant industries. Be confident in your worth and don't be afraid to ask for what you deserve.

Relocation Package

1. Explain your needs. Explain to the company that you are moving from East Asia to the Middle East and that you need a relocation package to help cover the costs. Maybe you can ask for an advance on the salary or housing to help with the relocation.
2. Be specific. Tell the company what you are looking for in a relocation package. For example, you might ask for a one-way flight, a month of accommodation, and a relocation allowance of $10,000.
3. Be flexible. Be willing to negotiate on the specific terms of the relocation package. The company may not be able to meet all of your demands, but they may be willing to compromise.

Hope this is helps!
 

I'd say that one month is typically adequate for a tier 2 firm. Regarding the relocation package, one month is also quite standard for the region. Another factor to consider is the current trend of high demand for consulting roles in the Middle East due to other regions slowing down. This has strengthened the bargaining position of employers. While it's reasonable to negotiate, it's essential to strike a balance and not push too hard.

Warm regards, Frederic

Hi there,

Hire a coach!

An investment of $200-$300 can easily pay off with an additional $5k-$10k

When trying something new that you haven't done before(i.e. you don't know what you don't know), why “risk” a free Q&A over a paid professional who's in your court?

For reference, I doubled my signing bonus from $20k to $40k. It's all about what you say and how you say it!

1. The firm offered me around half a month of base salary as a signing bonus, after I mentioned that it seemed low they almost doubled it to almost 1 month of base. But what I am reading here, or compared to the US (where it seems to be USD ~25-30K), 1 month of post-MBA salary still seems very low. Should I continue negotiating? What tactics would you suggest?

You might want to continue you might not. It depends on the exact offer, what they've said, what you've said, etc. I'd need to understand the full context to advise on strategy here!

2. The relocation is almost non-existent I would have to move from East Asia to ME, and they are only offering a) one-way flight, and b) 1 month of accommodation. I was at least expecting some sort of relocation allowance since I have to move half way around the world.

This is relocation allowance….BUT you might be able to increase a relocation bonus

Hi Michael, 

Congratulations on the offer! In terms of your questions: 

1) The firm offered me around half a month of base salary as a signing bonus, after I mentioned that it seemed low they almost doubled it to almost 1 month of base. Should I continue negotiating? What tactics would you suggest?

I would recommend continuing to negotiate only if you have a benchmark showing that you should receive more in the region.

The best way to negotiate is to have an “opportunity cost” of another offer and leverage it. If you don’t have alternatives from other companies, you won’t have much leverage. 

2) The relocation is almost non-existent. I was at least expecting some sort of relocation allowance since I have to move half way around the world. Any suggestions how to take this forward? 

I would recommend calculating the costs you will incur and sharing them with HR. So far you have justifiable expenses, they might include them in the package if they are related to the relocation.

Good luck!

Francesco

Hi,

How hard to negotiate and push would really depend on specific circumstances that you are in (which we lack details of), and personally I would not push too hard unless:

• You have benchmarks that comparable T2 firms offer higher signing/relo bonuses
• You are coming in to the T2 firm under a specific practice area and therefore there is specific demand for your expertise and you have a sponsor of your slot
• You have multiple offers from other T2 firms, and maybe MBB
• You have multiple offers from comparable or even better roles outside (e.g. Tech strategy, MNC strategy, PE, IB, HF)

The rationale for the above is that you have to also think from a firm perspective:

• They are willing to typically offer high sign-on bonuses to MBA hires because MBA hires typically have many opportunities in front of them
• You are also moving half way around the world sure, but so are many people who choose to come to Dubai and if that is their average relo allowance, why should they make an exception for you
• FYI not all firms will have a standardized policy for non-MBA hires (this is true at BCG where some experienced hires were not offered sign on bonuses) and therefore ultimate discretion is with the firm

So what I'm getting at is it would depend on how much leverage you think (and the firm thinks) you have. I guess no harm trying to negotiate one more time, but I probably wouldn't push too hard

All the best!

Hi Michael!

Congrats - that's awesome. 

Let me take your questions one by one:

1. The firm offered me around half a month of base salary as a signing bonus, after I mentioned that it seemed low they almost doubled it to almost 1 month of base. But what I am reading here, or compared to the US (where it seems to be USD ~25-30K), 1 month of post-MBA salary still seems very low. Should I continue negotiating? What tactics would you suggest?

Actually what they offered seems reasonable for the region. 

If you want to push further, try to bring some data and create some leverage. 

e.g., Data meaning proof that others receive more in the region. 

e.g., Leverage meaning that you have competitive offers with better bonuses

Still, it would've been better if you tried this from the beginning of the conversation, rather than after they already made a counteroffer because this will create a stickiness effect in them.

2. The relocation is almost non-existent I would have to move from East Asia to ME, and they are only offering a) one-way flight, and b) 1 month of accommodation. I was at least expecting some sort of relocation allowance since I have to move half way around the world.

I would recommend that you put together an estimate of the costs and share it with them. Be fair and transparent. Highlight your committment to joining the firm.

Last but not least, if you're joining consulting soon, here are two guides you might find useful in understanding what it takes to become distinctive in your first year:

• Expert Guide: How to Become A Distinctive Consultant
• Expert Guide: How to Manage for Lifestyle in Consulting

Best,
Cristian

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