Previously I noted how you can Maximize Your Income by Knowing What You're Worth. Here's a related thought from the book The Net Worth Workout: A Powerful Program for a Lifetime of Financial Fitness
It's common to get wrapped up in the excitement of a job offer. But now is the time to negotiate all the extras including a signing bonus, relocation expenses, and so forth. And last, but certainly not least, if a company says it will do something financially in the future, always request it in writing! Some people may think it can jeopardize the relationship; it's more likely to solidify your future employer's respect for you.
This is a great, great tip. Very simple and easy to do (most companies will certainly put a compensation offer in writing) and something that can literally make you a good amount of money. It did for me. Here's how.
In the mid-1990's, I took a job for a company that was in the process of rapid growth. They had a new president and were expanding rapidly. I was hired as an executive and received a written compensation agreement including my salary, bonus, and the like. Times were good, yet we never made a bonus, so having one wasn't worth anything financially to me.
A few years later, the president was out of favor with the parent company and was fired. It was a bitter parting that ended up in legal proceedings. Needless to say, the two parties weren't really on friendly terms.
For me, it actually worked out well. I got a promotion and continued to do well in my new position. The next year, many company executives earned a bonus. When I approached my boss to ask why I didn't get a bonus, he said that a bonus was not part of my compensation structure. In other words, the previous president had offered me a bonus without informing the parent company. Yikes!
I informed him that I was due a bonus as I originally negotiated. He said he'd ask Human Resources about it. He did, and they said they had no paperwork on it. He then asked me to produce something in writing that backed up my claim (it wasn't like he would call the past president and ask him -- they weren't on speaking terms.) I got my compensation agreement from my files that night at home, brought it to work the next day, and gave him a copy (not the original.) Within two weeks, I had my five-figure bonus check.
I never forgot that lesson and bring it up today to remind those of you reading this to do the same -- get your compensation agreements in writing. Doing so could earn you a bundle of money.
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