When you are negotiating your salary for a new job, don’t just focus on base pay. Look for these additional factors that could impact your take-home salary and savings.
(Photo Credit: borman818/Flickr)
1. Sign-on bonus: Depending on your level and the company’s practices, you could be able to negotiate on a sign-on bonus. Check out the company’s history with sign-ons and the usual amount offered. Since most companies have a salary range to stick to for every level, the sign-on helps work around the system to get you more money than just your fixed salary.
2. Increase in-lieu of increment: If you are joining too close to the increment cycle or have just missed the performance evaluation period, negotiate for a salary increase as if you were working in the organization. You could explain that since you will be missing the cut-off date for increment, you would be on the same salary for more than a year (depending on the company’s increment cycle) while the rest of your peers would have already been treated to an increment.
3. Stock-options/units: If your company offers stock, make sure you study the market trends and analyze how the company is doing. Armed with this background information, you could negotiate a better number for your company stock. You could also trade off salary versus stocks if you are confident in your research and see a bright potential in the company’s future.
4. Company-sponsored tuition: If the course or certification you are interested in pursuing is in line with your role in the company, you could negotiate for the company to bear the tuition costs.
5. Relocation costs: If your company is having you relocate for the role, unless specifically stated, they will cover your relocation costs as well. If you need help with an extended (reasonable) guest house/corporate apartment stay because you envision buying a house versus renting, you could put that request up front and save on some rent. If you are relocating from a different country, you could also ask for the company to sponsor your spouse’s work permit and assist with a relocation consultant or settling in allowance (to make up for the sudden change in cost of living, cultural adjustment, etc.) over and above the basic relocation expense they provide for the transfer of goods. If you’re going to incur loss because of the transfer — for example, you have to short-sell your house, or travel to and from your old location because your family needs to complete the school year — chances are that these costs can be negotiated with the new employer.
6. Paid time off: If you are planning on a vacation, but the company needs you to join immediately, you could offer to join but negotiate for not being required to take unpaid time off for your vacation. (Generally, if you are new, your vacation days take time to accrue). If you need to cancel your vacation (most companies let you take the pre-planned vacation), then you could also request for a reimbursement of your expense in booking those tickets.
7. Flexible schedule: If you need to make significant lifestyle adjustments — for example, are in the process of having a baby, or are moving with a dependent, or need time to settle, etc. — you could also ask for a flexible work schedule to accommodate for your needs.
8.Cash in lieu of benefits: If you are already covered through another insurance, say through your spouse’s company and can opt out of the new company provided insurance, you could check to see if there’s an option of cash in lieu of benefits, which would further boost your income.
Disclaimer: The tips shared above may or may not have additional tax implications. Please consult a financial/tax consultant for more information on your tax responsibility.
Tell Us What You Think
Have suggestions/experiences to share? We want to hear from you! Leave a comment or join the discussion on Twitter.