Your Guide to
Negotiating a Job Offer
When planning on negotiating a job offer it is important to consider the full compensation package and not only the base salary.
- Compute the dollar value of the benefits such as health care and retirement plans.
- Add this figure to the salary for a more accurate picture of the job offer.
- Consider hidden employee benefits such as salary progression and training to properly assess the value of the offer.
Once you have an accurate evaluation of the whole job offer you can plan
your negotiations around this. This guide to how to negotiate salary
will help you get the job offer you want.
How to Start Negotiating a Job Offer
Compare the complete dollar value of the offer to your competitive market value in order to enter into successful salary negotiations.
Key to developing your negotiation strategy is to look at all the elements of the job offer. Decide what it will take to turn an unacceptable offer into an acceptable offer and which items you can negotiate.
1. Evaluate the benefits
Negotiating a job offer includes discussing the benefits.
Benefits can add up to 35 percent of the total compensation. Latest research shows the average total benefit costs as a percentage of total
costs were 31.6% (US Department of Labor) in private industry.
value of these commonly offered benefits to you personally when
evaluating your job offer. Put a direct $ value on each benefit.
- Health Insurance
- Dental Insurance and Optical Insurance - often not part of a medical plan, so if this coverage is offered it is a bonus.
- Life Insurance - many companies provide a basic coverage which can be added to.
- Disability Insurance
- Retirement Plans - assess the value of the employer contributions and the plan as a whole.
- Profit sharing/bonuses - find out the amount of the last three or so payouts relevant to your percentage/position to put a $ value to this benefit.
- Stock options - consider how the stock has performed and how it is likely to perform in the future.
- Tuition reimbursement - what further education and training will be of
real value to you and what will any reimbursement offer be worth.
- Child care - Consider both the $ value and intangibles such as convenience, peace-of mind and time-saving.
- Employee Assistance Programs and Wellness Programs - counseling can be
of great value to employees depending on their circumstances. Consider
other aspects of these programs like health club membership and free
- Overtime - while salaried employees are usually not paid overtime, some
companies do compensate for time above an expected standard number of
hours. This can take the form of overtime pay or bonus pay.
- Parking - this often overlooked benefit can amount to a large amount
over time, especially if you will be working in one of the high-cost
- Expense reimbursement - factor in business
related costs that you will be reimbursed for including phone,
laptop/tablet, car, entertainment.
2. Evaluate indirect benefits
Also consider benefits that provide personal satisfaction such as the
number of leave days provided.
Apart from compensation what else does
this job offer include? Consider these aspects before you begin
negotiating a job offer.
- Promotional opportunities that can be expected over the next 5 years.
- Salary progression that can be anticipated during this time. How often do salary reviews take place?
that you receive on the job. What will this training translate into in
terms of the value of your skills and experience, your goals and your
overall job satisfaction.
After considering the entire compensation package and all its aspects
you are in a position to decide what is most important to you. You will
now know which benefits you want to negotiate in addition to the salary
Planning your job offer negotiation
Negotiating a job offer requires these major steps.
Use the salary negotiation tips to get the job offer you want.
How to negotiate your job offer
Job Offer Negotiation Letter
Negotiating a Job Offer TechniquesAccepting a Job Offer
Job Interviews > Negotiating Salary > Evaluate the Job Offer
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