Guerrilla Marking for Job Hunters 2.0 - Jay Conrad Levinson [139]
➤ Tuition Forgiveness
This is not the same as an education allowance. Tuition forgiveness deals with the money you already invested in your education. For example, you may have financed an advanced degree in nursing, and now each month you have a student loan just as you might have a loan for a car or house. If you’re in a “hot area” like IT security or nuclear medicine, you may be able to get the employer to assume your education mortgage.
Now’s the time to stop reading and turn to Appendix 3, if you haven’t already. Take a hard look for any items you currently pay that you could switch over and have the employer cover. Insurance programs can be very costly and you pay for them with after-tax dollars—double ouch. The employer will gladly provide extra benefits if he thinks that you will accept a lower salary. Let him reason that way for now.
Remember, benefits are great, but they’re not spendable dollars. You maximize your cash flow by having the employer pay for your benefits. Always maximize the employer’s portion of the coverage because you’re not taxed on benefits. Well, okay—in Canada benefits may be taxed; but in the United States, you’re taxed on your gross salary, not your total package including benefits. Frequent flyer miles are the only exception; if the company gives them to you and you use them, the IRS will tax you.
GUERRILLA MISSION
Look at the list in Appendix 3, determine what you have now, and how much each item costs. What benefits can you reasonably expect the employer to pay for? What would you like them to pay for? Make a list now so you know what you’re going to be negotiating for and the monetary value of each item.
Using a checklist ensures you won’t have regrets later. It also demonstrates your business savvy. Be alert, employers may try to trick you by focusing on your “total compensation” instead of your salary. Instead of focusing on the $40,000 salary, the employer will try to sell you on the $52,000 package (base + benefits). In most employee/employer negotiation schemes, it’s to the employer’s advantage to load up the benefits component to lower base salary. Of course, guerrilla, you’ll be prepared to counteract this. You want the highest possible salary and great benefits, too.
■ YOUR STRATEGY
Take the lead. Do not make the mistake of letting the employer define the issues for you. You must negotiate salary last. Why? Simple, the employer will be focused on the big number—your salary—to the exclusion of all else. We want to nibble—just a little—and then a little more. Talking about the little items first will earn you a string of rapid concessions on items like insurance, professional fees, and vacation. If the employer wants to be the hero on the salary front, who are you to deny them? A true winner gives wins away, so let them feel like they’re winning. For the time being, focus on increasing the value of your benefits by 50 to 100 percent. It’s still money for you and there’s no ego involved in their giving away benefits.
GUERRILLA TIP
If you are relocating and you already own a home, make sure you don’t get stuck with two. Have a clause put in the employment agreement that states in effect that you’ll endeavor to sell your house but if after 2 months the house is not sold at fair market value, the company is responsible for buying the former home outright or paying your mortgage until such time as the house is sold. This is one of those benefits you want to think about from the outset but only table as an “afterthought” just as you’re reaching to sign the employment agreement. Essentially, you need to have all the other points of the agreement in writing before you try this. Don’t worry, you’re not going to shock the employer; they were just holding their breath hoping you wouldn’t bring it