Negotiation Checklist
Use this checklist to examine your offer letter and negotiate.
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Remember it is not necessary that you always negotiate.
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However the following checklist helps to make sure that you know what you are being offered and there are no surprises.
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Ideally you should speak about salary only when you are asked about your expectations or when you have an offer letter in hand.
- 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
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By when do you have to sign the offer letter?
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Where would be in the organizational hierarchy?
02. Base salary
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Base salary is most important since your vacation pay, severance etc are all calculated based on this base salary.
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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
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Performance linked bonus, Commissions
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It is very important to understand what factors influence variable components and how these components are determined.
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What is the usual payout you can expect?
04. Benefits
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Which of your dependents would be covered?
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What would be your contribution towards the benefits?.
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Medical, dental, life insurance, disability coverage.
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Sign-on bonus, long term incentive, profit sharing plan, employee assistance programs, others.
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Pension plan and company contribution towards it.
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Car & parking allowance
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Home office allowance for equipment, laptop, cellphone and misc expenses (internet, phone etc).
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Memberships of professional associations, magazine subscriptions, product or service discounts.
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Opportunities for participation in professional conventions, other self development activities.
Is there any clause in your offer letter relating to exit conditions?
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Conditions which prevent you from working for competitors, Conditions which prevent you from soliciting business from ex-colleagues?
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Any other clause?
06. Vacation
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How much you are entitled for. Will it increase?
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Are you paid money if you don’t take vacation?
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How much of your vacation can you carry-over every year and how much vacation can you take at one time (long vacations)?
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Are there certain times in the year that you can not take vacation (for example during end of quarter)?
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Other leaves like company days, personal days, sick leave, parental leave, compassionate leave (to care for sick dependents, long term sickness etc).
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Possibilities for sabbaticals
07: Work expecatations
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Quantified goals you are expected to achieve every month.
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Sales quote/targets.
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Business development expectations.
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Performance review schedule.
- Availability of coaches, mentors