Monetary considerations often weigh the heaviest while negotiating a job offer. While your monthly salary is without doubt an important part of the deal, you should also consider the value of perks, benefits, and perquisites that come with a job offer. Little things — a pick-up and drop facility, or a free lunch — could save you lakhs of rupees in the long run.
It is only after a thorough evaluation of non-salary compensation that you can understand the true worth of a job offer. Let’s take a look at some of these non-salary compensation that bring weight to your job offer:
A large majority of Indians are without insurance of any kind. This is a very important part of a job offer, yet it rarely gets the serious look it deserves. The importance of health insurance is often not felt until you have a health emergency. Carefully consider the value of the various insurance schemes your employer offers. These would typically include group
medical and life insurance, and a personal accidental cover. The value of such covers would be tens of thousands of rupees in the retail market, and having these covers through your employer could potentially save you that money. The end of your employment in one company should not mean the end of those insurance covers. You should take it upon yourself to convert the in-force group policies to personal retail policies to enjoy continued coverage.
We all need our downtime. Medical and vacation leaves are the most common forms of paid leave offered by employers. Lately, employers have started offering other forms of leave to keep up with competition and to attract the best talent. Leaves for maternity, paternity, adoption, social work, education, training, and bereavement are not uncommon now. Leaves are also becoming women-friendly with some companies offering menstrual leaves. IT companies now are known to offer sabbatical leaves as well — unpaid leaves that may last several months — in order to retain and encourage employees who may want to take time off to travel, study, discover themselves, or simply recover from work burnout. While negotiating a job offer, do look at the types of leaves on offer. In fact, one of things you could consider asking for is a greater number of leaves. Having to work for a smaller number of days a year can automatically boost the value of your compensation, and those extra leaves would also come handy as they can be converted to cash during your resignation.
The requirements of the job market keep changing. Who would have thought ten years ago that social media management would be a career? One can only wonder the nature of careers ten years from now. In order to help employees upgrade their skillset, companies may offer short- or long-term education or training programmes such as an executive MBA programme at a reputed business school. Such a programme may be worth tens of lakhs of rupees in the open market. Having your employer compensate you through such incentives could be extremely valuable in terms of how it could upgrade your career.
Eating out is expensive. Cooking at home is an arduous task, particularly for youths living on their own. Having your employer provide you meals at work could save you thousands of rupees every week. Many generous employers in fact provide their staff three meals a day at no cost. Such an arrangement lends massive weight to your total compensation, meaning that your take-home pay is a true compensation with in-built savings.
Ask for a one-time joining bonus as a deal sweetener. It could be a percentage of your annual pay. You could also ask for a performance bonus at the end of a financial year. Employers can often manipulate the terms of performance bonus, making it difficult for employees to derive their full value. Negotiate the terms of performance bonus and make them more amenable so that you’re not in for a rude shock after your appraisal process.
Contribution To PF, superannuation
Employers should be ready to match your PF contribution. The same could be said about employer’s contribution towards a superannuation programme which would allow you to draw a monthly pension at the end of your stint. And while this may be a few thousand rupees a month at the start of your employment, it could snowball into a massive fortune by the end of your career. The little things matter a great deal.
These benefits are as important a part of your compensation package as the monetary ones. They also reveal the extent that a company cares about its employees. So the next time when you negotiate your salary, do not hesitate to discuss the benefits package. In fact, the employer, who is willing to go an extra mile for its employees, will proactively tell you all about them.
The writer is CEO, BankBazaar.com