Thomas D. LaBaugh, MBA, Ph.D.

Article 2

In a Job Offer, You Can Sometimes Negotiate More Than Salary

 As mentioned in a previous article, it is hardily recommended that salary be negotiated when an offer is presented for a new job. But beyond salary there are a number of areas that can also be negotiated which can enhance your total package significantly and perhaps even change your mind about accepting the offer.

As you approach the offer, and start negotiation, take the issues one at a time in the following order:

1. Always deal with the money issues first.  Salary is a given, but there are often issues of financial significance that can make the salary even more attractive, i.e., signing (or sign-on) bonus, typical annual or semi-annual bonuses, commissions, and stock options.  Beware, however that the sign-on bonus, unless you are in professional sports, usually means that the salary is lower than the market.   In short, they are trying to pay you less than would be expected and are trying to blind you to that fact with a high offer today (including the bonus) but a low annual salary next year.  The sign-on bonus might also suggest that the position is a real turkey and not attractive enough to bring on many takers.  If you have the sinking feeling that the latter is the case, investigate before you make a final commitment.

2. Next, turn to the issues of vacation.  Two weeks is a typical offer on a new job but hardly enough for anyone to get their batteries recharged after a year of stressful work (which most of us are doing).  But vacation can sometimes be tricky to negotiate and it may depend on the level at which you are working.  Too often vacation is considered a “benefit” and the policy regarding it is written in stone and unchangeable. If, however, the position is high enough in the organization, you have a better chance of gaining ground in seeking more vacation.  Those “power positions” filled with good pay but a lot of stress, visibility, and salary, can sometimes carry flexibility and you can negotiate a tailored outcome for your particular position. 

3. Other goodies. These can involve such things as moving expenses, including packing, mortgage and house buying assistance, a car, cell phone, laptop computer, PDA, credit cards, and other tools necessary to do your job.  These should be third in line after salary and vacation since they may be a part of corporate policy, cast in stone, and non-negotiable.  Some other benefits to consider include health insurance, disability and life insurance, tuition assistance, expense account, bonus, commission, lodging between homes (on a move), club membership, salary review schedule, job title, retirement, stock options, dues for professional associations, and parking. 

There are some things you usually want to avoid.  One is discussion about the organization’s separation policy.  Even though this is on your mind it may send up a red flag to your new boss that you are not really serious about staying on very long. 

We had a senior level client who had been looking for about five months and finally received an offer.  The up side was that the money was exactly the same and the benefits a little better.  It required a move to a colder climate, away from friends and family, and there was some question about the strength of the company.  Having recently gone through a job loss, our client did not want to get to his new destination and go through the same scenario in a few months having sold his house and moved lock, stock and barrel, to the new location.  His plan, then, was to negotiate a severance package into his offer.  In talking it over, he came to see that such a question would raise serious doubts in his new employer’s mind about his longevity and commitment but he also was unaware of another hidden rule in this arena.  Those types of discussions are reserved for the executive who is “stolen” away from a competitor. 

If this is the case, it is easy to talk severance because of the strength of your position, i.e., why leave a stable, well paying job to take a risk in a new one.  Here it is appropriate to bring up the issue and nail down items like severance pay, unemployment compensation, stock options, and outplacement services.  If you have been out of work for a while, you are obviously not being taken from a luxurious position and don’t have the negotiating power with which to approach the subject.

If, after considering the above, you still need to ask the question, phrase it at the end of negotiations with something like “what is your policy on severance?”  This makes it appear that you are simply prying into policy decisions and not really concerned with leaving. 

All Rights Reserved – Thomas D. LaBaugh, MBA, Ph.D.