How to Respond to 'The Base Salary for This Position is Low, but the Performance Bonus/Benefits are Excellent' in Salary Negotiations

How to Respond to 'The Base Salary for This Position is Low, but the Performance Bonus/Benefits are Excellent' in Salary Negotiations

Problem Description:
An interviewer might use the phrase 'the base salary is low but the performance bonus or benefits are excellent' in response to your questions about compensation. This tactic aims to lower your expectations for fixed salary while attracting you with potentially uncertain bonuses or non-cash benefits. You need to maintain an open attitude while rationally assessing the feasibility and risks of the overall compensation package.

Solution Steps:

  1. Clarify Details and Quantify Vague Statements

    • Example Response:
      "Thank you for explaining the compensation structure. To better evaluate the overall package, I'd like to understand more details:
      • What are the specific criteria for the performance bonus? For instance, is it based on individual, team, or company performance?
      • In the past year, what percentage of employees received the full performance bonus? What was the average bonus amount relative to the base salary?
      • What exactly do the mentioned benefits include? For example, year-end bonuses, stock options, supplementary medical insurance, or training budgets? Can their value be quantified?"
    • Purpose: Transform vague statements like 'excellent benefits' into measurable data to avoid being misled by general descriptions.
  2. Assess Risk and Stability

    • Analysis Directions:
      • Is the performance bonus dependent on subjective evaluations? If the criteria are not transparent, the actual amount received might be much lower than promised.
      • Is the value of the benefits suitable for your needs (e.g., the company provides free meals, but you might need cash income more).
      • Compare with market standards: Even if the sum of 'base salary + bonus' meets your expectations, a base salary far below industry standards could affect your salary benchmark for future job changes.
    • Action Suggestion: Calculate the difference between the 'minimum salary scenario' (base salary only) and the 'ideal salary scenario' (full bonus) to determine if you can accept the worst-case situation.
  3. Negotiate Fixed Salary While Maintaining Flexibility

    • Strategies:
      • Prioritize increasing the base salary: "I understand the appeal of the bonus and benefits, but the base salary is the foundation for life stability. Considering my experience and the responsibilities of this role, could the base salary be adjusted to [Target Amount]? This would allow me to focus more安心地 on my work and strive for better performance."
      • If the company insists on being unable to adjust the fixed salary, propose a compromise:
        "If adjusting the base salary is temporarily difficult, could part of the performance bonus be converted into guaranteed income? For example, setting a guaranteed minimum bonus (e.g., 10% of base salary), or signing clear terms regarding performance targets to ensure transparency in bonus achievement?"
  4. Make a Comprehensive Evaluation and Define Your Bottom Line

    • Final Decision Points:
      • If the total package (including benefits) remains below your bottom line: Politely express regret, "Thank you for your candor, but at this stage, cash income is more critical for my financial planning. This position might not be the best match for my expectations."
      • If you decide to accept: Request that the bonus rules and benefit details be clearly specified in the written contract to avoid unfulfilled verbal promises.

Key Principles:

  • Don't be misled by vague descriptions like 'excellent benefits'; insist on using concrete data to support your judgment.
  • Distinguish between 'what the company can offer' and 'what you can actually obtain'; prioritize negotiating the more certain components.
  • Always steer the negotiation focus back to your actual value to the role, rather than passively accepting the other party's compensation structure."