APICS Atlanta Employment and Recruitment Coordinator
Article appeared in the April 2003 APICS-Atlanta newsletter
Everything is negotiable or nothing is negotiable depending on the company, the situation, and the position. You have to be perceptive enough to determine your bounds. Negotiations begin with the ad or job listing. Serious negotiations begin after the initial offer is received. If the job listing indicates the potential salary range, the title, the number of people supervised, the dollar responsibility---all of these things are indicators of rigidity or flexibility.
What is negotiable also varies by management levels - higher the position the more that's negotiable.
You need to gather information during the interviewing process on the company's standard practices regarding certain items that are typically negotiable. (If you are working with a search firm they will likely be able to provide most information.)
Get a "read" on how flexible the hiring manager and company culture are during the interviewing process so will have a feel for what they may be willing to negotiate later.
Develop a plan on who and when to ask for information and who to negotiate with for each item. Some suggestions follow:
| Gather Information During the Interview | Who to Ask for the Information |
|---|---|
| Normal Performance/Pay Review Cycle. Under what circumstances do they give off-cycle reviews for exceptional performers. | Hiring Manager |
| Bonus/Incentive Comp: Criteria, Date Eligible, Date Paid, Target %, Average Actually paid for your job level in past 2-3 years, Maximums | Hiring Manager |
| Benefits eligibility, effective dates, provisions: Medical, Dental, Life, LTD, STD(30-90 days) Any pre-existing condition clauses that are waived if you present HIPPA Certificate. Your share of cost on insurance plans (know what costs you paid at previous employer.) | Human Resources |
| Retirement plan/401(k) eligibility, actual participation entry date, date contributions made/posted, average company contributions, vesting schedule. | Human Resources |
| Relocation Expenses - vary widely. Ask for copy of their detailed policy. | Info from HR and Hiring Manager |
| Home office setup expenses: desktop or laptop; palm pilot, internet hookup, dedicated fax/internet line, wireless phone. | Hiring Manager and maybe HR |
| Company car, auto or expense allowances | Hiring Manager |
Generally NOT Negotiable
| Item/Issue to Negotiate | Alternative Approach | Who to Negotiate With |
|---|---|---|
| Medical Insurance Effective Date | Hiring Bonus to cover COBRA until coverage is effective. | Hiring Manager |
| Entry date for Retirement/401(k) and receiving company contribution | Guarantee 1st year bonus to cover missed contribution | Hiring Manager |
| Vesting date on qualified plans (401(k), Profit Sharing, Pension, Stock Option Plan.) | Paid equivalent amount if terminated by company prior to vesting for reason other than gross misconduct | Hiring Manager |
Generally Negotiable
| Item/Issue to Negotiate | Approach | Who to Negotiate With |
|---|---|---|
| Vacation amount higher than standard accrual rate | For senior level position - ask for what have had before or 4 weeks. ALTERNATIVE: Get #weeks need for 1st year without pay (at time take will usually get paid for it) | Hiring Manager |
| Bonus 1st year minimum guarantee | Average amount actually paid out for your level position or amt you would receive at targeted performance. If retirement plan eligibility a factor, include amount of average contribution. | Hiring Manager |
| Pay Review Early | Ask for 6 month if standard is year or more. Especially if they have not met your request for a higher base pay. | Hiring Manager |
| Severance - 6-12 months. Outplacement Services -# months not $ cost. | Corporate restructure could find you being replaced regardless of your performance. | Hiring Manager |
| Relocation Expenses | Ask for specifically what you will incur as part of the move - be reasonable. Packages vary widely according to level of position up to covering all expenses and bridge loans. | Hiring Manager |
| "Hire" Bonus | Amount to get 1st yr comp close to amount wanted in base; to cover expenses such as COBRA medical ins premium during waiting period; lump sum amount to cover items not covered in the relocation package. | Hiring Manager |
| Expense/Auto Allowance | $175 - $250 month to cover incidental expenses related to extensive travel or entertaining of customers; up to $500+ for auto. | Hiring Manager |
| Stock Options | Your contribution to bottom line results. Request cash equivalent if let go before vest. | Hiring Manager |
| Home Office Expenses | Desktop or laptop, printer, scanner, palm pilot dedicated internet line, wireless phone. | Hiring Manager |
| Professional Assoc Dues Tuition Reimbursement | Continual learning and opportunity to keep skills sharp benefit the company. | Hiring Manager |
| Country Club Dues | If entertaining clients is part of responsibility. | Hiring Manager |