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Lightning Round V Salary-Making Rule 5

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“Bennies” is slang for benefits, “perks” for hiring perquisites. They are important for two reasons. First, they can complement a solid salary, making the total package even better. Second, if the salary you’ve been offered isn’t quite what you expected, adding on some of these often-nontaxable extras can bring the entire offer very close to the figure you had in mind. That is the meaning of Salary-Making Rule #5: Clinch the deal, then deal some more.

Read The Book To Learn

Chapter 7 has ten subsections, which cover examples of typical bennies and perks you may wish to negotiate. You might choose not to discuss all of them at your first negotiating session. Bring up a few of the major ones and save the others for a second session. Don’t worry if you can’t resolve all of them right away, either. Some may be new to your employers, and they may need a few days to see what’s possible.

1. Salary Reviews

2. Sales Compensation

Sales-compensation packages have several variations:

• straight commission

• variable commission

• draw against commission

• advance against commission

• base plus commission

• salary plus commission,

• salary and bonus

• salary

• residuals

3. Performance Bonuses

4. Insurance

5. Cars and Expense Accounts

6. Professional Memberships

7. Vacation and Personal Days

8. Relocation Expenses

9. Other Bennies and Perks

Severance pay; Christmas bonuses; matching-funds investment program; deferred salary; corporate gasoline from private pumps; free parking; corporate cafeteria or executive-dining-room privileges; pension plans (do you contribute or does the company pay in full?); credit union; company-paid physical examinations; country-club or health-club memberships; and use of the corporate plane, boat, or vacation property.

With so many takeovers, downsizing, etc., negotiating severance pay can be very important. See the Special Situations chapter to learn more, especially the section, “Negotiating Severance Timing II: Long before you need it.”

Also ask about tuition reimbursement. Still more bennies and perks are estate- or financial-planning assistance, tax and legal assistance, and corporate-product discounts. Figure 7-1 contains a list of perquisites and benefits.

10. Signing Bonus (a.k.a. “Sign-On” Bonus)

In flush times generally, or when demand is high in your particular specialty, employers may entice you to take their offer by adding a signing bonus. This is a one-time multi-thousand dollar payment and its purpose can be to:

• sweeten the offer so you’ll take it

• compensate you for bonuses, options vesting, etc., you would lose with your present company if you accept the offer from the prospective one

• recognize the IV$ value you bring (i.e., you’re saving them $5,000 tuition in, say, Peachtree software because you already know it.)

• reward you for bringing over your “book” of business or your loyal-to-you clients

Any time you can think of special IV$ (see chapter 4), you have a rationale for negotiating this type of bonus.

Time to Think It Over

After you’ve discussed these matters, the offer should be pretty clear. Put all your enthusiasm back in gear and say, “This sounds terrific! I think we’ve really got a solid match here. Would you jot this all down so we’re clear, and I’ll get back to you as soon as you need to know. When do you need to know?”

It is extremely important to maintain your enthusiastic voice, gestures, and energy so your request for time is not taken as a lack of interest in the job. There’s a delicate line here between demanding time and requesting clarity.

Read The Book To Learn

• All 10 categories of benefits and perquisites.

End of Lightning Rounds: Dive into the book!

Negotiating Your Salary

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