How to Negotiate Bonus Structures

Negotiating a fair bonus structure will help you achieve greater job satisfaction.

There are many aspects of your compensation that might go into your employee contract. These include how much you get paid in terms of a yearly salary, what kind of health benefits are available for you and your family, details about your retirement account and what types of bonuses you can receive, such as for making large sales or improving the company budget, and how much these bonuses can be.

Instructions

1. Request an employment contract once you receive a job offer. Make sure this is a request, not a demand.

2. Ask that your bonus structure be included in the contract. Talk with your employer about the different types of bonuses the company offers and ask that any bonuses relevant to your position be added to the contract.

3. Be realistic. Understand that if the company is undergoing financial hardship or is a small start-up company, you may not be able to receive large bonuses. Consider your value to the company, the company's financial state and the types of bonuses typically offered before you request a maximum amount.

4. Stay firm, but always be polite. Keep the negotiation of your bonus structure a friendly, professional conversation while remaining confident in your ability to help the company succeed. Let the employer know your specific plans for helping the company and make it clear that you don't expect to receive a bonus unless you achieve results. Be sure all terms discussed go into the contract.

5. Have the contract reviewed by your lawyer, specifically the sections about your bonus structure. Don't advertise to the employer that you're having it reviewed by a lawyer. Instead, let him know that you'd just like to think about it for a day or two or perhaps discuss it with your family.

References

• Zoomjobs.com: Job Search Advice for Professionals