Evaluating Your Total Package - Money is undoubtedly one of the first and most important aspects of an offering, but is not the only issue of consideration.  The total package offered is typically comprised of: compensation, benefits, incentives, perks, vacation, paid time off, etc.  A mistake that is common to evaluating a job off is to look exclusively at the monetary portion of the offering  to determine its acceptability, while neglecting the remainder.

We would strongly suggest consideration of your offering package in its entirety.  "What does it profit a man to gain the world but lose his soul?"  What will be the quality of my life if I make a fabulous salary but never have the time to enjoy it?  Quality of life is another important piece of the puzzle.  What if you become sick, disabled or die?  These are other concerns you should make room for as you determine what is acceptable as a total package offering.  Ask as many questions needed to satisfy your concerns before you accept.

Evaluating Your Package Benefits - Benefits are largely considered to be the "insurance" portion of the total package.  There is much more to take into account.  Below are a few benefits which are standard for many companies.  Ensure you pose pertinent questions about these benefits such as:

• Vacation - How how many days are allowed in your first year?  When do they begin accumulating?  When can they  be used?  How many days are allowed in following years?  What is the maximum number of days one can accumulate?

• Holidays - Currently, there are six standard holidays that nearly every company provides for:  Christmas Day, New Years Day, Memorial Day, Independence Day, Labor Day and Thanksgiving Day.  Does this company also provide for the day after Thanksgiving?  What about other holidays such as: Presidents' Day, St. Patrick's Day and Martin Luther King Day?   It is important you understand what holidays are covered so that you will not inadvertently utilized a vacation day on a holiday you had no real intention of celebrating.

• Sick and Personal Days - Many companies are beginning to gravitate away from providing formal sick days.  This can sometimes encourage bad employees to take advantage of the paid days off when they are unneeded.   Personal Days are coming to the forefront of some companies.  Personal Days are governed by the company's policies regarding its definition.  

• Insurance

  • General Coverage Plans - Determine the cost of these plans.  How are they deducted from your pay check?  What is the scope of their coverage?  Are family members covered in the plan?  When does the coverage begin?  Is there a deductible?  Are there any restrictions, exclusions or black out dates?  Explain your life position to the HR Department to determine if this plan is right for you.

  • Medical Insurance Plans - What type of plan is it: HMO, PPO, etc.?  What is covered by the policy?  Who is covered by the policy?  What if any are the co-pays?  What if any are exclusions? 

  • Dental Insurance - What is covered by this policy?  What is the highest annual financial cap placed on this insurance vehicle?  What is considered an exclusion?  What services are provided for free: exams, X-rays, cleanings, etc.?  Who is covered by this policy?  Are there annual minimums?

  • Optical/Eye Care Insurance - What expenses are covered?  What are the deductibles?  What are the annual financial caps placed on this insurance vehicle?  Does this policy cover: eye exams, contact lenses, eye glasses, surgery? 

  • Life Insurance - Although most don't put too much energy or thought into their deaths, they should.  It is something we all must do and something we cannot predict when it will come for us.  This is something you do for your loved ones.  Is a term policy appropriate for you right now or is whole life the right choice?  Is a variable life insurance vehicle right for you?  Does your company provide assistance or incentives for purchasing life insurance?  What is the dollar pay out?  How much do I need?

  • Disability Insurance - This is another one of those insurance programs that most people think is for the "other guy".  "That won't ever happen to me."  It can happen and does to people everyday.  You should check on what types of disability coverage is provided by your employer and or what types you might need for your own adequate coverage.

  • Accidental Death Insurance - Unfortunately, if you were to die in some incredible manor, some companies may pay out more upon your death.  Does your company pay if you are accidentally killed on the job?  Check into your company's coverage.  It is a personal choice to add more coverage.

• 401(k) Plans - Your company's 401(k) plan can aid in building a tax-deferred retirement.  Does your company provide matching amounts?  What is the maximum you can contribute annually?  How long do you need to work with your company before you become vested?

• Pension Plans - This is an important consideration for your later years.  This is an amount that is put away for you by your company, which accumulates over the years until your retirement.  Many companies have been cutting back on this benefit.

• Profit Sharing - The amount of profit sharing provided is at the discretion of the company and is many times provided at a rate "up to" a predetermined amount.  Ensure you read the fine print on the company's policies of this particular program.  From company to company, the terms can vary greatly.  One thing to consider is the nature of this benefit.  It is based on the company's actually profitability.    Projected profits are like eggs that have yet to be hatched.  You cannot count on them until they are in fact there to be enumerated.  So to it is with profit sharing.

• Stock Options/Employee Stock Option Plans - While different from true stock options, it provides the employee the advantage of buying company stock at a discount from the market value.  Although varied, typical discounts are in the 10% to 15% range.  Most will also allow you to reinvest your dividends commission-free to purchase more company shares. It is an attractive benefit.   This provides you the opportunity to watch your money grow as the company and your career follows suit.

• Parking Reimbursement - This is a valued benefit in large metropolitan markets.  It is many times overlooked.  At a typical rate between $50.00 and $150.00 a month, this translates into a $600.00 to $1,800.00 annual savings.

• Expense Reimbursement - It is standard that companies will pay you for direct business-related costs that you incurred while on duty.  It is important to remember that each company possesses differing policies governing this benefit.  Ensure you are well acquainted with the terms of this benefit.   A misunderstanding in what or how much is covered will cost you...literally!

• Tuition Reimbursement - This can be a great cost savings if you are pursuing a degree while working with your company.  Each company's compensation plan and terms of pay out are determined by internal policies.  Ensure you are completely acquainted with those policies so that a misunderstanding does not lead to any added expenditures for you.

• Fitness Clubs - A growing trend of benefits offered is in the area of fitness.  Everyone benefits by a healthy employee.  A reduced rate or membership provided is now common place in corporate America.  Larger companies many times provide for their employees with an on-site gymnasium. 

• Child Day Care - More are making room for non-traditional family models in the work place.  Dependent care for these employees has been shown to increase work performance and over all job satisfaction by many single parent families in the work force.  It only makes sense.  If a person could drop off their child at the beginning of the day downstairs and pick them up on the way out the door at the end of the day, then a family could continue to thrive while a worker is satisfied with the dual role in this new work environment.  It helps the family, which in turn helps the employee.  The employer benefits from improved productivity.

• Overtime and Comp Time - Typically, salaried employees are not paid overtime.  However, some companies will compensate for time above and beyond an expected standard. This compensation can take the form of bonus pay, extra paid time off, additional vacation time and the like.  Ensure you familiarized yourself with the company's policies on this benefit.

Items Of Negotiation - If the initial offer has been tendered and a few items are little less than desirable, then you have options.  You will need to determine what will make the offer acceptable.  Try to remember that money is not everything.  The offer can be restructured to include benefits that can make the offer very appealing. 

There are many items which are subject to negotiation.  It is advisable that salary is the first issue which should be resolved. Keep in mind that if you are asking for $75,000.00 or $120,000.00 and are offered a few thousand less, then you need to determine if this is acceptable.  If there are other compensations that can be offered to bridge the gap between what you are needing and what is offered, then what would you accept from them in compensation?  What would it be?  Every persons desires and circumstances are different.  We offer a few suggestions you may employ as a part of a negotiation of the initial offer.

Financial

• Increased Salary

• Contractual Increases

• Signing and Annual Bonuses

• Profit Sharing

• Stock Options/Employee Stock Option Plans

Benefit Based

• Overtime/Comp Time

• Company Car

• Travel Rewards

• Relocation Assistance

• Expense Package

• Educational Reimbursement

Career Based

• Title

• Training

• Technology-provide cell phone, PDA's, etc.

• Travel Assignments

• Broad Equipment Usage

Turning Unacceptable Into Acceptable - To Begin with, it must be determined if the offer is truly unacceptable and why.  In addition, you must formulate your counter offer and propose it to the Hiring Authority.  If the negotiated offer is sound, then the Hiring Authority will seriously consider it.

One quick method is to list the Pro's and Con's of the initial offer.  This will usually and clearly demonstrate whether the initial offer is truly unacceptable or acceptable.  If it is unacceptable, then it should be evident how far off the mark it is.

If you now have determined the initial offer is unacceptable, you will need to formulate a counter offer.  It is important that you write down the reasons why the initial offer was unacceptable.  This helps to stay on track.  If you develop an ridiculous counter offer, then it will likely be dismissed by the Hiring Authority along with your Candidacy and initial job offer.

Take a look at the "Items of Negotiation" and "Evaluating Your Benefits Package".  Make an earnest attempt to reconcile your needs with the initial job offer.  There are plenty of options available to bridge the gap.  Remember, if this future job is still something of great interest to you, then a compromise can be formulated.

Now that a negotiated offer to present to the Hiring Authority has been formulated, how do you proceed?  You must communicate in no uncertain terms your feelings of the initial offer and present the counter offer to the Hiring Authority.  It is critical that you remain positive and resolute in the certainty that a compromise can be struck with both parties satisfied by the outcome. 

There are some important issues to consider before you make this counter offer.  Please proceed carefully!  It would be a shame to lose a great job offer over a poorly handled negotiation. 

1. By making a request for a different job offer (by proposing a counter offer) or negotiating a new offer, you risk losing the initial offer.  In accordance with contract law, if you have made a counteroffer, then this technically invalidates the initial job offer.  It is all important for you to consider this before you proceed.  However, if the initial offer is unacceptable and you proceed with a counter offer, then you must be prepared to accept the potential consequences.

2. Explain very clearly what you feel is deficient about the initial offer.  Do not leave out any details.

3. Propose your counter offer.  Again, be very specific about what is deficient, why it is and what you feel would be a fair resolution to the initial offer's deficiency.  Remember to be diplomatic throughout the counter offer.

Ensure this is everything you need for the Hiring Authority to land you as a new employee.  If the Hiring Authority meets your request and you ask for more, then you will likely not receive another offer from this company.  Know your mind.

In addition, do not play high ball/low ball.  You will like lose your initial offer if you attempt to request an astronomical amount of money because you felt the initial offer was way too low.  This kind of "from the hip" negotiation only annoys someone who is attempting to meet reasonable requests.

Salary Negotiation - Salary is typically the core issue of the negotiation.  Remember, as we mentioned above, a counter offer can invalidate the initial offer: especially if the requested amount is well out of the range of consideration by the Hiring Authority.  Most successful companies work within an operational budget.  If you are requesting more money, then be prepared to justify why your education, skill set or work experience warrant the requested amount.  Be care how you proceed in your discussion about salary.

Always speak in terms of what you would like and not what you demand.  No one responds well to ultimatums.  If you propose the idea with an understanding that they could help you achieve a desire and not an expectation, then they will more likely want to work with you.

One way to deescalate the circumstance is by getting the Hiring Authority off the defensive.  Ask the Hiring Authority to help establish an acceptable range of expectations.  Put them in your position.  You may wish to use these suggestions:

• What is the salary range for the position?  For entry level as well?  Have you ever paid higher and why?

• What are the average annual increases provided for the position?

• How often is the employee evaluated for salary increase considered: annual review?