5 Parts of Your Compensation to Negotiate before Accepting Your Next Job Offer

Your total compensation will many times consist of more than just your base salary. It’s important to know what’s on the table, so you can maximize your total rewards. Here are 5 parts of your compensation that you can (and should) negotiate before accepting your next job offer!

Salary

This one is the most obvious because it is easy to quantify at face value. Always attempt to negotiate your salary. Your employer expects you to. And the higher you negotiate, the greater your take-home pay, which you can use in turn to:

• Improve your quality of life (spend more on your values);

• Boost your financial security (save); and/or

• Build your wealth (invest).

Signing Bonus

This can be another big pay chunk, and you should not neglect to bring it up. Not all companies offer a signing bonus, but it’s worth asking, especially as a counteroffer if you can’t reach your target salary at first. This will be an up-front deposit that you can leverage right away. Just bear in mind that it is a one-time bonus, so make sure your base salary still covers your needs in the long-term.

Performance Bonus

A performance bonus is another important part of your compensation that is driven by your performance throughout the year – whether quarterly, bi-annually, or annually. It is typically designated as a percentage of your base pay, so instead of negotiating a specific dollar amount, negotiate the percentage (i.e., 15% instead of 10%). Make sure you're clear on expectations so that you are eligible when the time comes for your performance to be evaluated.

Time Off

Time off is important for staying motivated on the job, preventing burn out, and achieving work-life balance. Determine how important this feature is to you and negotiate it accordingly. If they are offering 14 days of PTO, can you ask for 21? Remember, the worst thing they can say is no. There is nothing at risk by asking. If there is Unlimited PTO, get clarity on what that means and how people in the organization leverage the benefit. Unlimited PTO is not truly unlimited if you later find that most people don't take more than 2 weeks off per year.

Flexible Work Schedule

Flexibility in the workplace is a more nuanced benefit. Maybe the company you're considering has a flex schedule, which means you can leave early for doctor’s appointments and make up the time another day. Perhaps it means working more (or all) days from home. Another possibility is that it means working different business hours (e.g., 4-day work week; 7am - 3 pm, etc.). Consider what your ideal schedule would look like, and make a proposal that works for you.