Negotiating the Compensation Package
There are many parts to a compensation package over and above the
base salary and when negotiating, accepting and/or declining, be
ready to discuss the following, in detail:
1) Base Salary
2) Salary Review - When are salary reviews conducted? If yearly,
do they conduct a 90 day or 6 month salary review for new hires?
3) Bonus Plan - How is it based? On corporate profits or are they
project specific? It is ok to ask what a person in your position
received over the past couple of years.
4) Profit Sharing - Some companies have a profit
sharing plan in addition to their bonus plan. In this type of plan,
all salaried employees will receive the same percentage of their
yearly salary. You need to find out what has been the percentages
paid out over the past 3-5 years and what the vesting period is for
the plan. Also, if you are hired mid-year, will you receive a prorated
share based on the percentage of the year you are employed?
5) Retirement Plan/401(k)/Pension Plans - Most
companies offer a retirement plan of some type to their salaried
employees. Find out the enrollment criteria, the dollar amount the
company matches to your dollar amount put into the plan and the vesting
schedule for their contributed funds.
6) Health Benefits - 95% of all companies offer
some type of paid medical and possibly dental and vision benefits.
You need to find out the type of plan(s) they offer, when you will
be covered and how much you will have to pay for you coverage, as
well as dependent care, if applicable. If there is a 60 or 90 day
waiting period, will they cover your Cobra payments from your previous
employer until you are covered on their plan?
7) Vehicle or Vehicle Policy - If they offer a vehicle allowance,
is it taxed? Do they also offer a gas card? Do they cover minor maintenance
or have a tire policy?
8) Vacation Policy - What is the policy and how
long do you have to wait until you can start using your paid vacations?
9) Relocation Policy - Most firms will cover or assist the new candidate
in their relocation. Find out what the company policy is. If you
have a house to sell and will need assistance or reimbursement with
temporary living costs, be prepared to discuss in detail. If the
company is planning to pay for moving your furniture and belongings,
plan to do most of the packing. When receiving quotes on the move
cost, get at least three quotes and make sure they include replacement
cost insurance.
Most organizations' benefit plans are not all that negotiable. When
discussing, find out which of these items they are flexible with
and which they are not.
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