Someone with a MBA--could you please give some advice

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superwoman01

#1
#1
Is it the norm to ask for a signing bonus when being considered for a contract position? Also is it the norm to ask for it all up front in one lump sum? What other options are there to get someone on board?
 
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superwoman01

#5
#5
Thanks for the responses

excursion said:
If one of the mongers is trying to put you on a contract - get mullah up-front!!! LOL
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LOL! I wish:(
No I am hiring someone and they are demanding a lump sum up front as a signing bonus. Yet with the economy and the company is in a start up phase it just did not sit well with me. I understand that their is a transition period for a new contract. The candidate looks great on paper. Based on the interview has the capability and the experience to become an asset to the company. BUT the signing bonus that this person is demanding threw up a red flag. So I was trying to get some advice from someone of another way to get this person on board without flashing my nipples! LOL Only kidding as when I play business woman I am strictly business and no monkey business. :)
 
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superwoman01

#7
#7
Heartbreaker said:
I believe it all depends on the level of the position and if and when one receives it should be decided upfront, before their start date in writing.
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I was OK with giving a small advance but the rest upon proven productivity and would have written this into the agreement. But I received an email with the demand this morning. So I think that I will pass on this candidate. Thanks:)
 
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superwoman01

#9
#9
Boywonder2 said:
my signing bonus or boner would be huge nipples lol ;)
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U are a hoot!
I guess I should rename this thread Let's give Superwoman some advice on her new venture so that she can finally retire from the business before she turns 39!:)

It sucks because I still have one foot in the door and one foot out the door. Yet my MBA is still a work in progress. OK who will adopt me and take me under their wing (not their desk) and answer all my business questions to help me succeed?
 
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RuffToy

#10
#10
A signing bonus is typically offered to a candidate to compensate for (1) a bonus that will be sacrificed by leaving a current job (2) assistance with relocation expenses when a relo package is not offered by company (3) a way of offering a one time compensation boost when the salary band is lower than similar positions in other companies.

I find it interesting your candidate is demanding a sign on bonus. Hiring decisions are based on 85% personality/cultural fit and 15% skill set fit. There's a ton of talent out there but few who fit the culture of the company. The fact this individual is strong arming you even at this stage is a huge red flag.

Proceed cautiously with this one.
 
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Heartbreaker

#11
#11
superwoman01 said:
I was OK with giving a small advance but the rest upon proven productivity and would have written this into the agreement. But I received an email with the demand this morning. So I think that I will pass on this candidate. Thanks:)
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Based on that, I would definitely pass on this candidate. Most sign on bonuses are usually negotiated for the candidate by a recruiter/headhunter and the latter's client. Asking for one as Poini pointed out in this economy is not recommendable since this is an employer's market.

I had a situation where I worked as a Consultant to a Fortune 100 company and the recruiter negotiated a bonus for every month the other Consultants and I worked, ensuring we stayed on the project to completion. The project lasted 4 months longer then the original timeframe and I walked away at the end with a nice chunk of change.
 
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Poini

#12
#12
I run my own business. Anyone who when offered a job before they starts already asks for a raise. Well that is not a person you want working for you. Run as fast as you can away from this person. No matter how much you compensate them they will never be satisfied.
 
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superwoman01

#13
#13
Thank you everyone for your advice

RuffToy said:
A signing bonus is typically offered to a candidate to compensate for (1) a bonus that will be sacrificed by leaving a current job (2) assistance with relocation expenses when a relo package is not offered by company (3) a way of offering a one time compensation boost when the salary band is lower than similar positions in other companies.

I find it interesting your candidate is demanding a sign on bonus. Hiring decisions are based on 85% personality/cultural fit and 15% skill set fit. There's a ton of talent out there but few who fit the culture of the company. The fact this individual is strong arming you even at this stage is a huge red flag.

Proceed cautiously with this one.
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After reading everyone's posts I have come to the conclusion that it would be in the best interest of the company to pass on this particular individual. Now I understand a signing bonus and strong arming. I drafted a letter this evening to the individual informing them that their is no signing bonus for this position and politely wished them well.
Now I am researching a company that maybe able to assist me in filling this position.

Thanks again to everyone who posted and assisted me with my dilemma.
XXOO
AM
 
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LISteve

#14
#14
I would say that signing bonuses are usually given to someone who is going to be bringing you a ton of business from the get go. I have run two different companies and have rarely given out signing bonuses. The few times were for salesmen who I knew would produce. Since I knew them and their abilities ... I was the one who offered the bonus as a way to recruit them. I don't believe I was ever ASKED for a signing bonus. If I knew FOR A FACT that the individual was going to make a significant difference for my company and they asked for it ... I would pay it. Otherwise pass. In these times there are plenty of great people available. This should put you in the driver's seat when hiring people.

A great phrase I learned: "Hire slow, fire fast". It is difficult to fire someone ... but once I learned that you must fire fast ... my business life got better! Go to Amazon and buy books written by Dan Kennedy. You will be glad you did.
 
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LawManDan

#15
#15
Anyone who demands anything in this economy, without a significant book of business is crazy .. you are right to pass on this individual. Plus, plenty of people "look good on paper", but we do not live in a paper world. Its people and interactions. For me, if your interest was peaked by this person, I would contact them and ask them about the "bonus" and see what they say. They may be acting under some misconception and apologize. They may say that it was standard fare for the prior company where they worked, or they may have some completely legit answer. They may even apologize, and impress you with their people skills. I would inquire further. But then again, I am a lawyer, and always ask more Qs.... its in my blood to be curious. Maybe you get info that will help you evaluate the next candidate... IMHO
 
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superwoman01

#16
#16
Thanks again for everyone's advice. I did pass on that particular candidate. After reading everyone's thoughts--which helped me a lot. I chose to put together a few incentive programs today that would work with in my numbers (it is always a number's game) and would assist in the hiring process. The position is commission only and that is a tough hire in itself. I feel that if I incorporate the new incentive programs it will assist in the process of bringing on capable people. I took into consideration that their is a transition period for new contracts and they may incur some overhead. So I wanted to put together something that would both be lucrative to them and also put money in the company's pocket as well. If the person is capable they will do very well and their productivity will show in the first 30 to 60 days. So we will see. I am determined to build a good team! OK why do I have penis on the brain at this moment?
 
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LISteve

#17
#17
In a sales business it is always best to keep your fixed expenses as low as possible. This way when business is slow you are not under water. By giving incentives for production the better salespeople will respond. You can always give incentives where you can pay for half of their health insurance after a year of service ... or something along those lines. There's tons of stuff you can do. If you have enough cash to do so ... you can also offer a draw. Never make it forgiveable. Tell then you can pay them a few hundred a week for expenses and you will take it back after a certain amount of time. All of these things depend on the type of money we are talking about. I have given draws of $2500 a month and I never failed to get the money back because there was long term revenue from the customers.

superwoman ... get any book by Dan Kennedy. I have my MBA and very little of that helped me make money. What I learned from Dan Kennedy earned me millions. Any one book might be $10.

Keep us up to date on your progress!
 
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paulus

#19
#19
superwoman01 said:
U are a hoot!
I guess I should rename this thread Let's give Superwoman some advice on her new venture so that she can finally retire from the business before she turns 39!:)

It sucks because I still have one foot in the door and one foot out the door. Yet my MBA is still a work in progress. OK who will adopt me and take me under their wing (not their desk) and answer all my business questions to help me succeed?
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I could possibly advice you with your various business issues and it would of course be on a complimentary basis. My strong suit is start-ups and turnarounds which I have been involved with for years, and, yes I do have an MBA from a well-known business school.

As a quick search will show I was very much involved in this board some years back but then later transitioned to solely non-commercial relationships.

It was a lot of fun at some point to rewrite and redo a favorite provider's web site resulting in 50% more traffic. The fun was the main reward.

Paulus.
 
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