Negotiating pay as a newly hired employee is an awkward dance. You don’t have any clout with the organization yet, but you know they want you to work there.
Rather than dig your heels in regarding salary negotiations, try sidestepping the issue by asking for perks outside of extra money in your paycheck.
The hiring manager may be more willing to offer these forms of compensation than a permanent raise to your salary. Here are a few ideas of things to ask for.
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Work from home
Once common during the pandemic years, these positions are now rare, coveted unicorns. If you can get approval to work from home some or all of the time, the savings on transportation and flexibility may make the job worthwhile.
PTO
If your employer can’t raise your salary, see if they can give you additional paid time off (PTO). The extra vacation days may make your work-life balance more favorable.
Wellness benefits
Nowadays, many employers (or their health insurance carriers) incentivize their workers to stay healthy by offering reimbursement for gym memberships. See if your new employer offers this perk or is open to doing so.
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Transportation perks
If you live far from your employer, see if they’ll cover a public transit pass as part of your benefits package. You may also be able to negotiate for free parking or toll reimbursement.
Employee stock options
This benefit allows you to buy stock in the company you work for at a discounted rate. This incentivizes workers to strive for better company outcomes as it will drive up the price of their holdings.
Note that these stock options often come with a vesting period, so if you negotiate this as one of your benefits, be sure to read the fine print.
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Job title
Be sure your new job title accurately reflects your responsibilities and experience. If you don’t agree with the one given, ask for a revision.
Be sure to cite job listings with similar responsibilities with the title you want as evidence.
Travel benefits
If your work involves travel, can you keep the rewards or miles the company accrues for personal use? Depending on how much you travel, the value of these miles can add up to thousands of extra dollars in compensation each year.
Moving expenses
The cost of moving can be a huge hurdle when starting a new job in a different city or state. Ask your new employer if they can cover some or all of your relocation expenses.
Note that if you quit or are terminated within the first year or so, your company may ask you to reimburse them for the moving expenses.
Sign on bonus
Even if your company can’t promise an increased ongoing salary, they could give you a one-time sign-on bonus. This may be an easier sell to management as it isn’t a long-term commitment in their budget.
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Phone allowance
If you’re required to use a cell phone for work, see if the company will cover the cost of the phone and/or the service. This may not amount to much compensation, but every little bit puts more dollars in your pocket.
Retirement matching benefits
Instead of an additional salary, can your employer increase their matching amount? This equates to free money for you in your 401(k).
Tuition reimbursement
Thinking of getting a degree? See if your employer reimburses college tuition as a perk. Even if you already have a degree, some companies will pay toward a graduate-level degree, such as an MBA.
Student loan payments
If you’ve already graduated from college, you may be able to negotiate for your employer to pay for some or all of your student loan payments.
Note that employer educational assistance in the form of student loan payments or tuition reimbursement is tax-free, up to $5,250. Any amount above that is considered taxable income.
Childcare reimbursement
Some companies contribute to childcare by offering and funding a special account called a Dependable Care Flexible Spending Account (DCFSA).
Employers can add funds to the account that the account holder can use for childcare, or the account holder can put pre-tax dollars into the account to use.
Flexible scheduling
If you can’t have more money, could you work four 10-hour days to get a three-day weekend every week? Or could you create a split shift so you’d have time to pick up your kids from school in the afternoon?
Flexible scheduling allows you to play work around your life (not the other way around) and can be as valuable as extra cash.
Commission
Negotiating a higher commission rate is an easier sell than a higher base salary because your employer only pays more if you sell more. When you sell more, they make more money, so they will definitely have the dollars to pay you. It’s a win-win scenario.
Bottom line
Sometimes, a manager’s hands are tied when it comes to increasing a new employee’s salary, or the institution’s policy has a preset pay band for certain titles.
In these cases, you’ll likely be more successful by asking for benefits outside your compensation.
Some of them (such as working from home or taking extra time off) can be more beneficial for your work-life balance than trying to get ahead financially.
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