Learning a new skill: Salary and benefits negotiation part 1

In the military one learns a good many things:  How to stand at attention and march smartly about.  How to carry and shoot a rifle, and how to live out of a backpack for weeks on end.  How to fix a tank or fly a jet.  Lots and lots of things.

One thing that you don’t learn, however, is something that everybody else in the business world learns with their first job: how to negotiate.

Negotiation is a very important part the employment process.  When a candidate is offered a position with a company he or she begins the discussion of compensation with the hiring manager, where things like compensation, benefits, hours, vacation time, career progression, retirement plans, insurance, and countless other things that are part and parcel of employment.  In the corporate world all of these items are negotiable, and both job providers and job seekers know it.

In the military the situation could not be more different.  When a young man or woman joins the military they are provided a comprehensive pay and benefits package, but it is one that is set by law and regulation.  There is no negotiation for a better salary or more flexible hours — in fact, there is no negotiation at all.  The pay, allowances, and benefits for military folks are no secret, either.  The pay scale, which is based on rank and time in service, is readily available on the internet as are all of the other  benefits, special pay conditions (such as jump and dive pay), and housing stipends.  When you join the military you get what you get, just like everybody else in uniform.

As a result of the defined pay and benefits in the military those in uniform never engage in the process of employment negotiation, and that can place them at a disadvantage when they hang up their uniforms and enter the civilian world where everything is negotiable.

Everything from the salary you will earn to the amount of vacation you can take to where you can park your car is on the table.  It is up to you, the job seeker, to get the best offer that you can, and if you don’t know to engage in the back and forth of negotiation then you risk leaving valuable things on the table.  There is one guarantee in negotiation: you will never get things that you don’t ask for.

Fortunately, you can arm yourself for such a negotiation by doing a little research and preparing for it.

The research bit can make an enormous difference in the negotiation process because it can provide you with valuable information about the company and what you can and can not ask for.  You can surf the internet (at sites like www.glassdoor.com or www.payscale.com) and ask your friends and contacts (especially those in the industry you are entering or work at the company) about what the average salary for your desired position is as well as the benefits package that the firm offers.

As the job seeker you have leverage in the negotiation up until the point that you accept the job offer and the terms that it contains.  Once you say “yes” the negotiation is over, and you are highly unlikely to be able to change anything.  At that point anything that was left on the table will vanish like a thief in the night.

So what are the types of things that you can ask for?  Here is a quick list of twenty things that many companies will entertain and which may or may not be similar to military benefits:

1.  Performance bonuses.  Can you make more money if your performance merits it?

2.  Flexible hours.  Maybe a four day week with longer workdays?

3.  Work location.  Work from home?

4.  Overtime pay.  How much will you be compensated for working extra hours?

5.  Retirement plans.  What kind do they offer?  How much will the company match in a 401K?

6.  Vacation time.  You received 30 days a year in the military, and the base in the civilian world is two weeks, unless you negotiate for more.

7.  Travel expenses.  Can you get  company car?  Mileage compensation or a gas station credit card?

8.  Non-monetary compensation.  Can you earn stock options or fully valued shares of the company’s stock?

9.  Career flexibility.  Can you create a path that starts in one area of the company and then move to another?

10.  Time off.  How about personal days?  Sick days?

11.  Health care.  Is health insurance included?  What are the deductibles?  Is there an on-site clinic?

12.  Insurance.  You had SGLI in the military at a steeply discounted rate.  Does your employer offer life insurance?

13.  Meals.  Is there a company cafeteria?  Are meals subsidized?

14.  Child care.  Can you bring your child to work?  How about a nursing room for those who wish to nurse their infants?

15.  Tech equipment.  How about a company phone or laptop?

16.  Discounts.  If the company produces goods, can you purchase them at a discount?  Is there a company store?

17.  Memberships.  Will the company provide memberships to a health club or gym?

18.  Travel.  Will you be expected to travel in coach, business class, or even better when you travel?  How about upgrades?

19.  Education.  Will the company pay for you to pursue an MBA or other educational opportunitity?

20.  Relocation expenses.  Will the firm pay for you to move your family to the city where you will work?

These are only the tip of the pay and benefits iceberg.  If you don’t do your homework and come to the bargaining table knowing what you can and should ask for you will get less than you could have.

In my next post we will prepare for the negotiation by rehearsing and doing a little self examination to make sure we do the best job possible at the bargaining table.

__________

Lessons learned:

– Military benefits are set.  Corporate benefits are not.  To get the best salary and benefits possible you are going to have to negotiate for them.

– Not all companies offer all benefits.  You need to do some research to see what the company offers, and then be prepared to ask for them.

– Salary is usually the biggest aspect of the negotiation, but it is not the only element.  Unlike the military, many corporate benefit packages are tailored to the individual employee.

– Use your network of contacts and the internet to research what will likely be on the table during the negotiation.  Don’t look foolish by asking for something the company does not offer, and don’t forget to ask for something that they do.

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