Sufi Stories

Celebrating innovation, creation and entrepreneurship

Negotiation Checklist

Use this checklist to examine your offer letter and negotiate.

  1. Remember it is not necessary that you always negotiate.

  2. However the following checklist helps to make sure that you know what you are being offered and there are no surprises.

  3. Ideally you should speak about salary only when you are asked about your expectations or when you have an offer letter in hand.

  4. For each of the following elements make a note of the terms that you want and the terms which are in the offer letter. Identify which ones are top priority before you start negotiating.

01.Title, Start Date

  • By when do you have to sign the offer letter?

  • Where would be in the organizational hierarchy?

02. Base salary

  • Base salary is most important since your vacation pay, severance etc are all calculated based on this base salary.

  • This is the only component of the salary which is predictable and guaranteed, since other components like bonus & commisse.ions can vary depending on company profit, your performance.

03. Variable components

  • Performance linked bonus, Commissions

  • It is very important to understand what factors influence variable components and how these components are determined.

  • What is the usual payout you can expect?

04. Benefits

  • Which of your dependents would be covered?

  • What would be your contribution towards the benefits?.

  • Medical, dental, life insurance, disability coverage.

  • Sign-on bonus, long term incentive, profit sharing plan, employee assistance programs, others.

  • Pension plan and company contribution towards it.

  • Car & parking allowance

  • Home office allowance for equipment, laptop, cellphone and misc expenses (internet, phone etc).

  • Memberships of professional associations, magazine subscriptions, product or service discounts.

  • Opportunities for participation in professional conventions, other self development activities.

05. Termination clause

Is there any clause in your offer letter relating to exit conditions?

  • Conditions which prevent you from working for competitors, Conditions which prevent you from soliciting business from ex-colleagues?

  • Any other clause?

06. Vacation

  • How much you are entitled for. Will it increase?

  • Are you paid money if you don’t take vacation?

  • How much of your vacation can you carry-over every year and how much vacation can you take at one time (long vacations)?

  • Are there certain times in the year that you can not take vacation (for example during end of quarter)?

  • Other leaves like company days, personal days, sick leave, parental leave, compassionate leave (to care for sick dependents, long term sickness etc).

  • Possibilities for sabbaticals

07: Work expecatations

  • Quantified goals you are expected to achieve every month.

  • Sales quote/targets.

  • Business development expectations.

  • Performance review schedule.

  • Availability of coaches, mentors