Yes, you can teach an old dog a new trick, but training in Riverside for a couple of days this week has thrown my work schedule off, and I apologize for not being more attentive to my blogging duties. I hope to fix the situation with an idea that came to me for a discussion on negotiating hiring terms, conditions, and other aspects of employment when you receive a new job offer. A previous blog entry dealt with the subject of pricing yourself out of a job with salary expectations that work against you.  This time we can look at everything else in terms of your negotiations and benefits research. 

• Need bright, enthusiastic, people-person; $41K/yr. medical, dental plan. 
• Challenging job for individual with the right experience, start at $46K/yr.
• Make as much as $65,000 a year comm., no exp., training provided, travel req. 

From these three LA Times classified ads, in which job would you expect to receive the highest amount of total compensation?  Really can’t tell from the salary description, can you?  

Even with general information on the type of benefits provided by the employer, the total amount you would be able to receive is sometimes subject to negotiation.  Also, there may be benefits that have to be requested once you are an employee, but which should be calculated in considering the job. 

There may be conditions of employment which you want to pursue that only have intrinsic value, and can not be totaled in a dollar amount or equivalent.  But, which could tip the scale to accept one position versus another.  

At some point you need to sort out the things you will be asking for or inquiring about, in connection with your application for that new job.

When do you negotiate employment terms?

For the most part, negotiation for things that would make you willing to become and be satisfied to remain an employee of an organization, would come after you are contacted with a hiring offer.  Naturally, you will be discussing salary matters, but there can be many other things that are equally important in deciding to become their employee that we tend to rush past. 

It is often said that, “You are never more valuable to an employer than the day you are hired”.  (A little black and white, but you get the point.)  This is your opportunity to negotiate and be informed of the terms of your employment.  It goes without saying that you have to perform some level of “due diligence” before even submitting your resume to an employer.  This is so that you don’t waste everyone’s time going through the motions.

First… The Do’s and Don’ts

For those positions which offer the kind of the responsibilities, challenge, or other meaningful aspects of work that you want in a job, do by all means show your enthusiasm for the work of the position (and employer), in the initial meeting and throughout the interview and hiring process. 

If this is a job that you are really, really serious about, do not under any circumstances show hesitation or concern for the position based on subjects that have not been covered as yet.  Don’t let your concern about your asthmatic son being covered by the company insurance plan creep into your otherwise enthusiastic response to the job.  This can be misconstrued as lack of satisfaction with the job its self.

The first thing an employer wants to know is whether the candidate is excited about the job opportunity.  Don’t let other concerns mislead the hiring manager about your interest in the job.

In a particular hiring process there may be an interim step some employers use which is to discuss your becoming an employee.  If that happens, it might be more about organizational fit, rather than terms of employment.  Do be cautious about exposing deal breakers before you are in actual negotiations.

What is open for negotiation (beyond straight salary)?

A lot of the items a candidate considering a hiring offer may want to have a clear picture of involve the total compensation package.  Or said another way, compensation equivalent to the money that you might ordinarily spend, but which is not received as straight salary (healthcare is one example).  Also, those life style or corporate culture issues which will determine if you are truly satisfied with your choice of job and employer, or if you will be back out on the market in six months. 

First, become familiar with the organization’s standard benefits (which could be a union negotiated package).  If this information is not available to you, then you may have to address all of the basics yourself.  If that is the case, you may need some assistance to structure your request.  Unless you are a highly paid CEO, or a sports figure, you usually won’t have to negotiate your own contract.  But, this could occur with a start up company that has few or no employees.

Medical/Dental/Vision – if not limited by a preset structure you may want to discuss how much the employer pays for the coverage and who may be covered in terms of family and life partners, or household members.  Of course, be sure to check to see if pre-existing medical conditions are covered. 

Pre-Tax Spending – Ask if some or all of the benefits which require you to contribute all or part of the cost can be taken out of your pay check, before taxes are calculated.  You might also ask if they can take money out before taxes for such things as pre-school and Day Care.

Work hours or shifts – If you need a special accommodation because of an on going obligation (like dropping off or picking up a child from daycare), you may have to negotiate starting or ending time, and the number of hours worked.  The employer’s requirement for shift work or weekend and holiday work could be generally researched up front – apply or don’t apply accordingly.

Vacation, sick leave, requests for time off work - Have a good understanding of how all of the leave provisions work at this particular employer.  Again, this is something you may be able to research in advance.  It probably is not the norm, but misunderstandings can occur between what the hiring manager says, and the actual employer policy.  You may want to ask for a copy of the Employee Handbook, explaining that you want to fully understand the terms and benefits of working for this employer as you weigh your final answer to their hiring offer. 

Transportation Expenses - Does the employer provide a vehicle allowance, a pool vehicle for use on the job, or pay the Federal government mileage rate of 58.5 cents/mi. for your use of your personal vehicle as it is needed?

Relocation Expenses - Even if not covered by a stated policy it does not hurt to ask about and express interest in this subject.  The principal questions are: will the employer pay to have your household belongings moved to your new location; is there any reimbursement for living expenses while seeking new housing; and questions in the area of housing allowances, reduced mortgage rates, or other housing differential benefits.

Educational Support/Benefits - Does the employer support obtaining additional training or academic degrees; to what extent does the employer invest in its employees?  Will the employer meet some of the educational expenses you have acquired in training for this job (i.e., tuition loan repayment), and under what circumstances?  If you are a new grad in a high demand career it is okay to negotiate outside the box?

Job Change within the Organization - You really think the job you signed on for is great, but after becoming an employee you see another career path in the organization that really excites you.  Will the employer provide opportunities for you to explore a career change?

Employer Retirement Plan - Is there an employee retirement plan other than Social Security?  Beyond, tax deferral instruments/plans; is there a retirement plan for employees of the organization?  Who runs the plan and how secure is it?  Are there any major changes in the plan forthcoming?  Does the employer contribute towards a medical plan for early retirement?

The Final Decision

Consider for yourself how all this information fits into the total compensation picture when comparing it to your needs and the provisions of other employers? 

I will leave you with this thought… Sometimes straight salary is not an indicator of the best job choice for the long haul.  During the subprime mortgage housing boom, fairly recent graduates with a high school degree could make six figure salaries.  Where are those jobs now?  More importantly, where are those employees now, the ones who could have been acquiring training, seniority and following a stable career path?