NEGOTIATING YOUR CONDITIONS OF EMPLOYMENT

You know the employment picture is picking up when newspapers begin publishing articles on the basics of salary negotiation.  Phyllis Korkki’s article, “Talk About Pay Today, Or Suffer Tomorrow,” that appeared in the Business section on p. 8 of the May 22 edition of Sunday’s New York Times is a case in point.

The article is spot-on. But what kind of blogger would I be without offering a few improvements? If additional money by itself is not sufficient motivation for negotiation, Korkki argues, consider that future raises, retirement and 401K contributions will be multiples of whatever salary is agreed to.   The messages are clear: Get all you can while the getting is good and do not be overly concerned with how bad the job market is.  Based on the research I have read, salary is way over rated in that most employees rank other aspects of a job ahead of direct compensation.  If that sounds like you, here are some other things worth negotiating.

VACATION TIME:  Employers usually prefer to start the vacation accrual clock on your first day of work. That can be difficult to accept if in your last position you had already accrued considerably more vacation than you will have in this new one. Most employers are willing to give in on this one, but you have to ask. Do so before accepting a new position.    

HEALTH CARE COVERAGE:  If there is a waiting period before company coverage kicks in, you may want to negotiate an exception. I know, I know—qualified plans do not permit exceptions.  But there is nothing to keep you from negotiating a sign-on bonus to help with the cost of finding short term coverage during the interim. 

MID-YEAR EVALUATION and an appropriate salary adjustment:  Consider this especially if the salary offer does not meet your expectations.  Be sure however, that you are comfortable that you will be able to clearly meet or exceed expectations in a relatively short 6 month time frame.  Premature performance discussions about not meeting expectations can damage your longer term prospects.

RELOCATION EXPENCES if applicable. Companies have gotten out of the habit of paying extensive relocation expenses for new employees. Exceptions are often made for high level new hires or individual contributors who are expected to add significant value to the company’s bottom line. But the only way to know is to ask for it.

TERMINATION BENEFITS: It will likely seem odd to have a discussion with a new employer about what happens if you are terminated. But given the level of acquisition and divestiture activity and the lack of corporate conscience when it comes to terminating employees you need to understand termination benefits before accepting an offer. Companies routinely offer minimal termination benefits that increase (though not appreciably) with company tenure—not much help for relatively new employees. Sweeteners are often thrown in in exchange for an agreement not to sue.  The idea can be presented in a non-hostile way as a “guard against premature termination.”

MISCELLANEOUS other things to consider include job search support for a spouse, company paid health club membership, tuition reimbursement and adoption support. These are just a few things to think about beyond matters of salary. 

Your chances of getting what you need to feel good about that next job will be greatly improved if you understand HOW TO NEGOTIATE FROM YOUR STRONGEST POSITION.  In real estate transactions it’s location—location–location.  In negotiations it’s timing—timing–timing. You are in your strongest position once you have a job offer in hand. The employer has decided that you are the best person for the position and all that remains, perhaps, are some minor details. Negotiate!

I have covered these points and more in my recent book Cracking the New Job Market: The 7 Rules for Getting Hired in Any Economy. The Chapter titled, “You Get What You Negotiate, Not What You Deserve, is consistent with Korkki’s point of view as well as my own.