Understanding the job offer
When employers present a job offer, they often include a benefits package along with the proposed salary. Benefits packages are another way employers show they value their employees and have a vested interest in employee wellbeing. The added benefits offered as part of employee compensation help companies recruit talented employees and influence employers to offer more competitive rates. Although most pay scales are market-based, similar, standard, and fixed, employers often have more freedom to negotiate benefits. Learn what employee benefits are, see examples, and review tips for negotiating your employee benefits.
What are employee benefits?
Employee benefits are the non-salaried portion of employee compensation. Standard employee benefits are medical insurance, vision and dental coverage, life insurance policies, and retirement planning support. Benefits packages can be available to part-time and full-time employees, at the discretion of the company.
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Standard employee benefits to look for
Companies offer employment benefits to attract more talent and establish rapport with employees. Health insurance policies and life insurance establish that the company cares for employees beyond mere job performance. Review the lists and descriptions below for a look at some typical employee benefits included in a package.
Learn more: 4 Benefits You Can Negotiate
Insurance packages
Insurance packages include medical insurance, dental and vision coverage, and life insurance policies. Most companies offer a minimum standard and provide employees the option of buying into plans with more comprehensive coverage. There are publicly funded and private companies that offer coverage. Many employers buy into the privately funded company policies, which provide better coverage and work with a wider variety of physicians.
Life insurance provides some monetary coverage if the employee passes away during their employment. This provides some financial security for the surviving family of the employee and allows the company an opportunity to show employees that family health and security are important as well.
Disability insurance is offered for both short-term and long-term options. It provides an employee with a percentage of their monthly salary if they cannot work for a period of time. The birth of a newborn is considered a temporary disability in the United States and covered under some short-term disability policies.
Below are examples of insurance benefits employers might choose to offer:
- Health insurance.
- Life insurance.
- Dental insurance.
- Vision insurance.
- Long-term disability insurance.
- Short-term disability insurance.
- Healthcare spending account (HSA).
- Flexible savings account (FSA).
Retirement plans
Some companies sponsor retirement plans to help employees plan for a future where they are eligible for retirement. Retirement age is typically calculated by a combination of years worked and an employee’s age. However, in most cases, employees aren’t eligible for full retirement benefits until age 65. Many employers offer plans, like 401(k)s and Roth IRAs, where both employers and employees make matching contributions to accounts during the employee’s tenure with the company. For employees, this is usually pre-tax dollars and is an additional opportunity to save funds for the future. Examples include the following:
- 401(k) plans.
- Roth IRAs.
- Pension plans.
- Stock option plans.
- Profit-sharing.
Time off
In the United States, there is no federal law that requires employers to offer paid time off (PTO) to employees. However, as a benefit, most companies offer a predetermined amount of hours or days for employees in the case of a personal or family illness. Some companies offer employees earned time, where the company gives a half-hour of paid sick leave for every 40 hours of work an employee completes. Many employers also provide up to 10 holidays off, as well as some sort of bereavement time to show empathy. Below are some time-off benefits that companies typically offer:
- Paid holidays.
- Sick leave.
- Personal leave.
- Severance pay.
- Hazard pay.
Learn more: Companies Offering Great Maternity Benefits
Other compensation
Employers may choose to offer additional monetary compensation to employees based on employee performance, added duties and responsibilities, or other established criteria. Other incentives for employees support professional goals or preventative measures of health management. These additional incentives could include the following:
- Tuition reimbursement.
- Relocation help.
- Raises.
- Bonuses.
- Stipends.
- Wellness programs.
- Childcare benefits.
- Gym memberships or discounts.
- Telecommuting options.
- Employee recognition incentives.
Benefits protected by law
There are some benefits required by either federal or state law. Check with your employer to verify what is available to you. The federally protected benefits are as follows:
- Consolidated Omni-Budget Reconciliation Act (COBRA).
- Disability and Workers Compensation.
- Family and Medical Leave Act (FMLA).
- Minimum wage.
- Overtime.
- Unemployment.
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Tips for negotiating employee benefits
Consider these tips to help you negotiate a benefits package that you feel adequately aligns with your abilities and talents.
Take stock of your skills.
Evaluate your skills, abilities, and the future contributions you will make to the company’s progress and success. Know your value. Consider:
- Your educational background: Your level of education increases your value as an employee.
- Years of industry experience: Experience in your field establishes your credibility within the industry.
- Leadership experience and skills: Your leadership skills and experience can be invaluable to company progress. When recruiting for leadership, companies typically look in-house to promote trustworthy employees.
- Career level: The more advanced you become within your chosen career, the more marketable your skills.
- Interpersonal skills: These are transferable skills you apply across industries. Used in the workplace they improve company culture and foster positive work relationships.
- Hard skills: These skills take time to learn and hone. They are a time investment, and because they can require formal schooling and technical courses, they are also monetary investments and increase your value.
- Licenses and certifications: These validate your skills and offer evidence of your abilities.
Understand what is negotiable.
Most employers don’t have the option to negotiate salary. They follow a company-approved pay scale that aims to compensate all employees equitably based on skill-level, educational background, years of experience, and years with the company. However, some perks, such as the option to work remotely some days or a wellness program, are flexible.
Do background research.
Research typical packages offered by other companies for the same position with someone of your background and skill set. Knowing this information will give you leverage in your negotiations. Find out specific salary ranges, pay scales, and bonuses available at other companies so you can provide details and comparisons. Companies want to attract the best talent, so they may compete for your skills through added benefits.
Give concrete reasons for your requests.
Employers want to have healthy, happy, and productive employees. If remote work for a percentage of each month will give you a better work/life balance and reduce stress levels, explain that to your employer in detail. A company-sponsored daycare service may also give you the assurance and time needed to focus on your job responsibilities if you have children that need to be watched. The perks or benefits you seek should have a purpose and work toward improving your quality of life and work productivity.
Emphasize your strengths.
Remind the company of your qualifications and strengths. Your unique abilities can be the basis for offering more vacation time or extra sick leave. Highlighting your value by referencing your professional background, ability to lead, proven record for lowering costs, and other unique traits. Show you will bring value and success to the company to persuade an employer you should be adequately compensated for your skills and potential contributions to company success.
Request a written agreement.
In the legal realm, a handshake is not enough. Get your agreement in writing and review the details before signing any paperwork. For validity and transparency, the offer should be written with the agreed-upon terms clearly defined throughout. Document, file, and store any written communications you have that detail the terms of your agreement as well. The paperwork you keep will help to ensure that you are treated fairly and your employer upholds the terms.
Employers offer competitive salaries to attract qualified candidates, but when they extend you an offer, be ready to stand up for what you deserve. The confidence you show in your abilities and worth will help in securing an employee benefits package you deserve.