With tension tightening in the U.S. employment market, career professionals may think they’re losing leverage with an employer on key issues like pay, perks, and benefits.
That’s really not the case for employees who bring talent and tenacity to the job – and to the negotiating table when hashing out a deal with new employers.
“More is available for negotiation than either the prospective employee or the employer realizes,” said Venn Negotiation founder Christine McKay told TheStreet in an interview. "In my years of negotiating, I've seen people negotiate for annual training, 401k matching, charitable donations, and additional holiday time. That’s not to mention negotiating work location and the frequency you need to be in the office."
New talent also negotiates perks, including relocation services, apartments, cars, closing costs on a home, credit cards, keeping points from travel and cards, and more.
“Salary is only one part of the compensation equation,” McKay told TheStreet.
Issues That Should Be Negotiated by New Employees
Getting the news you’ve won a good job is a proud moment for an employee. But getting the news you’ve won the pay, perks, and benefits negotiation are even sweeter.
“The key to finding a good fit is for both sides to feel like they got a fair deal,” said Relay Payments chief people officer Amy Zimmerman. “Job candidates should be aware of their value in the market when negotiating. If they’re being reasonable, there’s a higher chance they’ll get what they ask for.”
What items should be a priority for new employees? These eight issues should be on the table, according to Shapiro Negotiations Institute managing partner Andres Lares.
· A signing bonus or a performance-based bonus during annual reviews
· Home office stipend or reimbursement
· A budget for professional development courses or education reimbursement
· Additional support on the team
· Child care expense coverage
· Flexible hours or arrangement
· Relocation expenses covered
· Additional PTO or vacation days.
When you address those issues in a job negotiation, consider who you’re trying to persuade.
“Think about who you are negotiating with/trying to influence,” Lares told TheStreet. “Is it human resources or your boss? If you have to discuss this with HR, consider discussing it with your boss first. He or she may help you potentially influence another department or at least substantiate the reasons for the ask.”
Take these tips to the negotiating table as well when you’re bargaining for job payments and perks.
Script your argument ahead of time. Often, negotiation conversations are tied to emotions, especially when you’re arguing for something in your favor, Lares advised.
“Being emotional may make or break their decision,” he noted. “It’s critical to think strategically and script out different scenarios to see how you will respond if the argument goes in your favor or against. By scripting ahead of time, you’ll avoid any rash decisions or responses.
Understand the big picture and other sides. As you script your argument for the added perk, consider what the employer will say.
“The ability to sense other people's emotions, coupled with the ability to imagine what someone else is thinking, plays a large part in the negotiation process,” Lares noted. “Consider what your employer is concerned about. Do they worry others will start to ask for similar benefits? “
Also include the benefits of additional perks. “For example, working from home will allow you more time to get things done without having a long commute or a home office stipend or reimbursement will allow you to get the items you need to do your job to the best of your ability,” Lares said.
Negotiate the job description. Ensure the job description matches what you want to be doing and includes activities that fill gaps in your expertise.
“Essentially, this is what the company is agreeing to do for you,” McKay said. “Your employer’s responsibility to you goes beyond giving you a paycheck. Make sure they are going to grow your skillset too.”
Negotiate based on value, not cost or time. Build a spreadsheet for yourself and estimate the total value of the offer.
“Determine what elements add the greatest value to you and the hiring company,” McKay added. “If you figure out the value equation, you'll elevate your position and theirs. You’ll want to avoid negotiating one item at a time and losing value in the process. Everything in an offer can be quantified to some extent. Figure out the math and negotiate the assumptions from there.”
Be Realistic
Above all, enter any job negotiation knowing that it’s a give-and-take scenario and not all of your demands will be met.
“Know your numbers and quantify the dollar value of each item you are asking for,” said Next Level Benefits CEO Lauren Winans. “This leaves you better prepared to draw the line with your requests as well as when it is time to accept the final offer.”
It’s also a good idea to plant some of these seeds with any professional recruiter working with you. “That way, the recruiter won’t be surprised by your counteroffer,” Winans said.
Additionally, many companies are more willing to budge on salary or sign-on bonuses than bending on benefits.
“Consequently, if you can negotiate the salary or bonus to a higher amount equal to the value of the other benefits items you were hoping for, that is definitely a win,” Winans noted.
