how to negotiate benefits

• Understand what benefits you can negotiate. When you receive a copy of the company's benefits package, ask about the potential for negotiation. ...
• Do your research. Look online to learn what companies in your industry commonly provide as benefits and whether they align with your potential employer's offer.
• Provide specific reasons. Providing the reasoning behind your requests can strengthen your argument. ...
• Show your value. During the negotiation process, remind your potential employer of your worth and why they wanted to hire you.
• Get the final offer in writing. Once you have finished the negotiation process, make sure to get a written offer. ...

Full Answer

What to do before you negotiate?

• Evaluate what you have to offer to start.
• You can research the market average.
• Make sure you prepare your talking points.
• It’s a good idea to schedule a time to discuss.
• Rehearsing with a trusted friend.
• You should be confident.
• You should lead with gratitude.
• Ask for the top of the range.

What are the benefits of negotiation?

What Are the Disadvantages of Negotiation?

• Disadvantages of Negotiation. While negotiation is a great starting point in the dispute resolution process, there are some disadvantages of negotiation that limit its effectiveness in some situations.
• Parties May Have Unequal Power. ...
• Negotiations Are Voluntary. ...
• Not All Issues Are Negotiable. ...
• Negotiations as a Stalling Tactic. ...

How to negotiate benefits during the hiring process?

“Make sure to ask for work-life balance perks you care about, like paid time off. Many companies will offer a limited amount of paid vacation time. But if you’re coming from a company where you had more, you can negotiate for them to match that number.

What is the best way to negotiate?

• Do your homework. ...
• Take your emotions, and toss them out the door now. ...
• Know your limit, stay within it, do not promise anything above what you can deliver, I am known for exploiting this with massive penalties dealt to the other side. ...
• Deploy the benefits of your

What benefits should I negotiate?

Consider hiring bonuses, vacation time, retirement plans, sick leave, insurance, and other company benefits as open for negotiation as well. If you are planning to go back to school, tuition reimbursement may be just as important as health insurance.

How can I negotiate for better benefits?

Can you negotiate benefits when asking for a raise?Get the timing right. A good time to ask for a raise is during your annual review. ... Set realistic goals. A good time to ask for a raise is during your annual review. ... Determine your negotiable areas. ... Assess the value of the benefits. ... Outline your accomplishments.

Can you negotiate health benefits?

In theory, you could negotiate every part of your employee compensation package, including base salary, bonuses, stock options, health coverage, tuition reimbursement and severance [source: Salary.com].

How do you counter offer a benefit?

How to Negotiate a CounterofferKnow your value and the industry rate for your position. ... Don't rush it. ... Don't forget non-salary benefits. ... Don't push too hard. ... Don't say too much. ... Know what's really important to you. ... Use a template to frame your request.

What is the best time to negotiate salary and benefits?

Typically, it's best to negotiate your salary after you receive an offer rather than during earlier stages of the interview process. You have the most leverage after you've proven that you're the best candidate for the job and you fully understand the employer's expectations.

Can I decline benefits for higher salary?

You can say that you'll agree not to ever take benefits, but the company can't sign off on that. And as for agreeing to take a pay cut if you decide to take benefits, that doesn't go over well either. No one likes to get their pay cut, even if they volunteered to do so 3 years previous.

What should I ask for in benefits package?

Questions to Ask About Employee BenefitsDoes the company offer health insurance?Will it cover members or my family as well as myself? ... How much of the premium costs do I have to pay for myself? ... Can I choose different levels of coverage? ... What kind of coverage is there for dental, vision and disability insurance?More items...

Do employers expect you to negotiate?

But you should know that in almost every case, the company expects you to negotiate and it's in your best interest to give it a shot. In fact, a study by Salary.com found 84% of employers expect job applicants to negotiate salary during the interview stage.

What can you negotiate besides salary?

Here are five things beyond your salary that you may be able to negotiate—and expert advice on the best way to approach each.Flex Time. Contrary to popular belief, many of us aren't working strict 9-to-5s. ... Promotions and Titles. ... Maternity and Paternity Leave. ... Vacation Time. ... Project Placement.

How do you respond to a low salary offer?

Here is a list of steps on how to respond to a low salary offer:Ask for time. ... Understand your minimum acceptable salary. ... Conduct research. ... Make a plan. ... Practice negotiations. ... Show enthusiasm. ... Negotiate for early performance reviews. ... Focus on your skills and expertise.

Should I accept the first salary offer?

“Don't accept the first offer — they expect you to negotiate and salary is always negotiable.” “That's just not true,” says Weiss. Sure, much of the time there is an opportunity to negotiate, but some hiring managers genuinely give you the only number they can offer. The best way to find out, says Weiss, is to inquire.

What to say when you want to negotiate salary?

You might say something like: "I definitely understand budgeting issues, and I want to be as flexible as possible to work with your team. I'm still very excited about joining your group, and would like to explore whether $60,000 is possible given my specific experience and skill set."

What to do when you receive a copy of a company's benefits package?

When you receive a copy of the company's benefits package, ask about the potential for negotiation. They may tell you that certain aspects, such as insurance plans or 401 (k) contributions, are not negotiable while others are. Once you gain this clarity, you can begin determining where you need to negotiate. For example, if the non-negotiable benefits do not meet your standards, you can start thinking about asking for benefits that would supplement those needs.

What do you need to know when you get a promotion?

When receiving a promotion, you need to understand what the role entails before accepting the offer. Find out what the responsibilities include and determine whether you have the necessary skills or training to perform them. If you know you can carry out the tasks of the job, you will feel more confident about your qualifications and thus your ability to negotiate.

How to convince your potential employer to hire you?

Reiterate the successes from your professional history, such as your ability to save costs, streamline processes or promote growth. Then explain how you aim to provide that same value to their company, and the benefits you receive should reflect that. When employers recognize the talent and advantages you offer, it may make them more interested in adapting to your needs.

How to negotiate a salary?

The key is documentation. Get the offered salary, vacation time, and health care early in the process and document it. Then compare it with market rate for someone with your experience and skills. If you don’t like what you see, don’t hesitate to come back to the table with another offer.

What is the primary influencing factor in negotiating a contract?

Salary. It makes sense to start with the big one. For most folks, salary is the primary influencing factor in their decision to negotiate. At The Hired Guns, we believe that you should always attempt to advocate for your own interests, even if the offer is pretty solid.

What is offer phase?

The offer phase is your first and best chance to negotiate for what matters to you. You won’t have another chance until year-end, so seize the day and lobby for what you want. Being timid here will get you nowhere. In fact, it might just work against you in ways you never expected.

How to calculate total effective salary?

Once you have an idea of what each policy costs you, subtract that amount from the salary you’re being offered. The number you’re left with is your total effective salary.

How to find market value of a job?

If you’re not sure how to determine your market value, Jim recommends the following steps: 1. Look for job postings in which the salary is listed. 2. Check websites such as payscale.com, salary.com, and glassdoor.com. 3.

What is the mission critical lever to consider in your overall compensation package?

As you’re leading up to the offer stage, a mission critical lever to consider in your overall compensation package is how the contribution to health insurance is divvied up between you and your new employer. Over the last several years at The Hired Guns, we’ve found the employee contribution to health coverage is increasing while the employer’s is decreasing.

What is 28 days to a new job?

28 Days to a New Job is a month-long Hired Guns course designed to help you maximize your competitiveness in the current job market. Learn the secrets to getting a job from hiring managers, recruiters, negotiation experts and more. Read our our introductory post here. Or Subscribe Now to receive 28 Days to a New Job as a daily email.

Why is it important to negotiate your benefits?

It’s important to negotiate your benefits while thinking about your long-term goals , such as retirement . While you may be new to the workforce and just starting out, you could be working in this position for some time. Therefore, you’ll want benefits that protect you throughout your life.

When negotiating benefits, is it important to know what you want?

When it comes to negotiating your benefits, it’s important to know what you want. By clearly defining your goals, you’ll be better equipped to outline your wants and needs to the employer, ensuring that the negotiation meeting is a productive one.

Why do you research benefits offered by a company?

You’ve probably already done this during the interview phase of landing a job, but researching the benefits offered by the company will allow you to understand which perks they offer so you can negotiate the right ones. It will also demonstrate your interest in the company and hopefully put your boss in a more positive attitude during negotiations.

How to negotiate 401(k) match?

To negotiate a 401 (k) match, start by seeing if the company matches your contribution. Consider the salary you were offered, too. A company may be offering a high salary, but unwilling to match your 401 (k) contribution.

How to negotiate additional insurance perks?

To negotiate additional insurance perks, start with an understanding of the company’s existing insurance offerings. If they don’t offer an HSA, see if they’re willing to, or ask for the employer to contribute more funding towards your insurance coverage.

What are commuter perks?

Commuter Perks. In some cases, the job you’ve been offered might be a bit of a distance from where you live. When you receive the job offer, negotiate commuter perks with your employer. You may be able to leverage stipends for bus or train fare or even gas by demonstrating the expense of getting to work.

Why is it important to research the benefits offered to you from an employer?

Ultimately, the benefits you are offered should be a deciding factor when you’re considering a new job.

What to say before accepting a job offer?

We’ve all heard about the value of negotiating salary before accepting a job offer. “Know your worth,” “Ask for what you deserve,” “Be willing to walk away if you don’t get what you want,” and so on. But a new hire package typically comes with other benefits woven in—many of which are up for negotiation, as well.

What is non monetary benefit?

“Sometimes, non-monetary benefits can translate into greater value than a simple raise can. For example, negotiating for a more senior-level title or office is an obvious way to create non-monetary value for yourself. Plus, your ability to innovate and create bilateral benefits might impress the prospective employer, as well.” —Michael Rainey

What to ask for if you have a long commute?

“If you’ll have a long commute, there are plenty of benefits you should consider asking for. For instance, you could request that they provide you with an automobile to use. If they won’t do that, maybe they could add your car to the company insurance policy, cover a certain portion of your automobile expenses, or share the cost of a leased vehicle.” —Michael Rainey, a business instructor at Pepperdine Graziadio Business School

What are the benefits of a new hire package?

But a new hire package typically comes with other benefits woven in—many of which are up for negotiation, as well. Paid time off, parental leave, commuter benefits, professional development opportunities, tuition reimbursement—the list goes on. There are so many things you can consider when assessing an offer, and understanding the full range ...

Can you ask about stock options?

“You can always ask about stock options or other long-term incentives if you’re at the management level. Many companies reserve some of these benefits for certain levels, but it never hurts to ask if it hasn’t come up.” —Tiffani Murray

Can you negotiate a sign on bonus?

You can negotiate for a sign-on bonus or relocation bonus when you first accept an offer, and you can also negotiate for other kinds of bonuses—ones you earn if you excel at your job.” —Claire Bissot, the managing director of HR services at the financial services and business consulting firm CBIZ. 17.

What is the importance of negotiating benefits packages with current and prospective employees?

An employer's willingness to negotiate benefits packages with current and prospective employees can make all the difference when it comes to retaining and hiring talent.

What is the first step in negotiating benefits?

If an employer decides to negotiate benefits, the first step is choosing which benefits programs can be included in the negotiations. Employers must "be clear about what benefits they are legally able to negotiate," said Kristen Fowler, practice lead with Clarke Caniff Strategy Search in Troy, Mich. "Be upfront with employees and job candidates on what benefits the organization offers and if they can be changed," she said.

How many employees negotiate benefits?

Employees are proactive when it comes to these negotiations. Of the 64 percent who attempted to negotiate benefits with at least one employer, 87 percent did so during the hiring process and 60 percent after being hired. Roughly 80 percent of those who sought to negotiate benefits said they were successful, according to the survey by Paychex, a payroll and benefits services firm.

Do employers need to have policies for telecommuting?

As these requests and questions become a fixed part of recruiting processes and employee retention strategies, employers will need consistent policies governing telecommuting.

Is employee benefits negotiation difficult?

Employee benefits negotiations can be difficult, however, with a range of legal, tax and regulatory issues involved. Although the Paychex survey found that 401 (k) matching or discretionary contributions are the most desired benefit (cited by 75 percent of respondents), employers must tread carefully when considering these requests so that they do not run afoul of IRS nondiscrimination requirements.

Do unlimited PTO programs have pros and cons?

Of course, unlimited PTO programs have their own pros and cons that employers should monitor and consider when administering these programs.

How to negotiate an alternate work arrangement?

The key to negotiating an alternate work arrangement when discussing the employee benefits package is to include your thoughts on how this type of perk would benefit the firm, not just you. Coming into work an hour later than the rest of the team, for instance, might save you half an hour on your commute and allow you to be more productive in the morning.

What to do if your employer doesn't offer subsidized training?

If a potential employer doesn't offer subsidized training at all, you might ask if they would be willing to if the training you pursue benefits the organization — if you're an accountant working toward a CPA designation, for example.

What are the benefits of telecommuting?

A great perk to have in your employee benefits package is the option of pursuing alternative work arrangements. Telecommuting once a week can save you money in commute costs and effectively increase your salary — not to mention the reduced wear and tear on your car.

What did new hires take from potential employers during the recession?

During the recession, new hires often took what they were initially offered from potential employers. Back then, the idea of negotiation seemed like looking a gift horse in the mouth. But now that the job market has improved, especially for highly skilled talent, applicants are once again feeling confident about asking for more than the offer on the table — including a better employee benefits package.

Can you forget your benefits package when you start a new job?

All it takes is a miscommunication between the hiring manager and human resources. So be sure all details of your employee benefits package — including any special adjustments you've been granted — are clearly stated in your contract or offer letter.

What to do when you are negotiating a job offer?

If you’re negotiating a job offer from a potential employer, your next step will either be to accept or refuse the counteroffer you receive.

What to negotiate with a new job?

If you’re looking for a new job, you can negotiate the first offer they give to you if it doesn’t meet your expectations. Counteroffer with the number you’re comfortable with, but don’t forget to consider their compensation package as a whole. While they may offer a lower starting salary than you expected, they may provide additional perks like outstanding health insurance, a signing bonus, or in-office child care.

What to do if you don't hear back from your boss?

If you don’t hear back within a week, follow up with your boss or hiring manager to ask for an update. Don’t let them avoid giving you an answer, even if it isn’t what you want to hear. If your request is refused, it can affect whether you accept a job offer or start looking for new employment.

How to manage emotions?

Another way to manage your emotions is to plan for the conversation in advance. Book a meeting with your boss or hiring manager beforehand so you can both be prepared. Feel free to let them know you’d like to schedule a time to discuss your compensation so that you’re both aware of the purpose of the meeting.

How is base salary influenced?

Your base salary is influenced by a variety of factors, including where you live, the industry you work in, and your level of experience. The first step you need to take when preparing to ask for increased compensation is to research the average salary range for your position in your area.

Why is salary important?

Your salary is one of the most important aspects of your life, and you should have input as to how much you earn. Being underpaid affects your lifestyle, your retirement, and your attitude toward your job.

How to counter a higher offer from another company?

Alternatively, you can also use a job offer as leverage with your current employer. Let them know you received a higher offer from another company and give them a chance to counter . This way, they can decide if they’re willing to match the offer you received, or if they’d rather let you go. However, make certain that you actually want to work for the offering company, since it won’t look great if you don’t get an increase but stay with your current employer anyway.

What is the main focus of negotiation?

When it comes to the topic of negotiation, most people's main focus is on salary . As David Lee Roth reportedly once said, "Money can't buy you happiness, but it can buy you a yacht big enough to pull up right alongside it."

Is health insurance a factor in compensation?

However, an increasingly important factor in an overall compensation package is health benefits. According to a 2007 study by the Kaiser Family Foundation, since 2001 premiums for family coverage have increased 78%, while wages have risen 19% and inflation has risen 17%. In 2010 the OECD ranked the US #1 in total health expenditure per capita: $8,233. And while I’ll leave the detailed health care reform discussions to the political blogs, it’s going to be a huge issue in 2013.

Do different people put different priority on each benefit?

The key thing to note is that different people will put a different priority on each benefit. One person might really value a higher title, but be fine with the standard amount of vacation. Another might not care as much about bonuses, but loves international travel and truly values more vacation time.

Do you have to reveal what is important during a negotiation?

You need to decide what’s important to you, but during a negotiation, you don’t need to reveal to the company what’s most important to you. Every negotiation has give and take.

Can you negotiate for vacation time?

If and when the company responds that they don’t have flexibility in increasing the salary, you can counter and negotiate for the increased vacation time. Because this isn’t a "hard cost" that companies need to spend money on, as a concession they might be more likely to give you the extra vacation time you desire.