Learn what's considered in a total compensation package and the specific benefits that may be negotiable. Explore how to analyze the value of a total compensation package, determine what benefits are more flexible in the negotiation, and rank which benefits you might want to prioritize.
- According to the Bureau of Labor Statistics,…up to 30% of your total compensation…is through a benefits package.…Since this is a large part of your compensation,…it's important for you to go beyond the salary…and identify other priorities that should be…a part of the negotiation.…Let's look at some common components…of the benefits package you should consider.…First, retirement benefits.…It's common for a company to contribute to your retirement.…This often is in the form of a percentage…that they match based on your contributions…you make to your retirement.…
Let's use a simple example.…Let's say at your current company…you make $70,000, and they match retirement at 6%.…Now let's compare that to a salary offer of $80,000…at a company that matches retirement at 4%.…Assuming you contribute 6%…to your retirement savings each year,…your company would contribute 6%, or $4,200.…In the other scenario, at 4% the company…would only contribute $3,200 a year.…
In one year, a 2% difference in retirement matching…doesn't seem like a lot,…
- Recall what percentage of total compensations is through a benefits package.
- Explain which approach to begin within during a negotiation process.
- Recognize characteristics of a host-based approach.
- Identify the purpose of an equity review.
- Determine which steps to take when leaving a job for another.