Negotiating Salary and Benefits

As a recent graduate, you're probably just so happy to be offered a job that the thought of negotiating a salary never crosses your mind. And benefits, that's what parents are for, right? Not exactly!

Keep reading to see what you can expect from your first job offer and what areas are negotiable.

Salary

Do your homework. Just because you are young and new to the job market, doesn't mean you have to settle right away.

Know the salary range for the position you're applying for -- this can vary depending on where you live. Check out your industry's professional associations or the Human Resources Development Canada (HRDC) website to find up-to-date salary information (see link below). The HRDC website gives an idea of what people are paid in various occupations across Canada, but wage information may not be available for all occupations in all geographical areas. Many online job boards also include information on negotiating salary and benefits.

Determine where you fit in the appropriate professional range based on your skills and abilities. Don't discount practical experience from summer jobs and volunteering. Your job title may have been different, but if you were using relevant skills, your value to the company increases.

Don't undersell yourself just because you're a recent grad. But if you choose to accept a position for less than the market rate, ask about including a salary review in your contract 6 to 12 months after you start work.

Benefit basics

Benefits are standard for many full-time positions and can really sweeten a job offer. Below are the building blocks for most benefit programs.

Some typical benefits include:

medical (prescriptions, physiotherapy, hospital expenses, etc.)
dental
vision
life insurance
vacation
retirement / pension plans

Some companies even have flexible plans -- “cafeteria-style” benefits -- that allow you to select the level of coverage or benefits that work best for you. For example, if you wear glasses, you might be able to pay $10 more a month for increased coverage on lenses, frames or contacts or use a set amount of benefit dollars as you wish depending on your needs. Massage therapy may be more relevant to you than prescription coverage!

Stepping it up

The dot-com era ushered in a new wave of benefits -- from free lunches to foosball tables, video games and casual dress policies. However, things have changed considerably since then. Belts are tighter and wallets are lighter so you don't see the extravagance of days gone by.

The age of outrageous benefits may be over, but the door has been opened to creative and flexible options to attract and retain promising young people.

Some benefits to consider that affect your work environment and ultimate happiness include:

flextime
job sharing
casual dress
in-house fitness centre or club memberships
tuition reimbursement
counselling services
bonuses
stock options

Even though you may not be able to count on free lunches, don't be afraid to suggest lifestyle-enhancing benefits that your future employer may not have considered.

You have a tremendous amount to offer an employer so be confident but also realistic in your expectations.

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.