Negotiating Benefits when Compensation is not much to write home about

Of all ideas on Compensation and Benefits, here is one which is a win win situation for both the employee and employer. Excerpts below. Find the original article here.


Can't Get A Raise? Negotiate Your Benefits
Bobbi Dempsey, 06.30.10, 10:48 AM EDT
There are many ways your employer can make your job more pleasant, even when money is tight.

For employees who can't get a raise in salary, a "benefits raise"--getting the employer to increase or enhance current benefits or add new ones--may be the next best thing. Here are a few tips on persuading your employer to consider a benefits raise.

Come Up with a Win-Win Scenario
"The best approach would be a benefit/incentive program that is going to produce more benefits for the employer than it costs," says Robert F. Fallis of Fallis & Associates, an organizational psychological consulting firm in Seattle.
Fallis suggests something along the lines of the Scanlon plan, in which employees come up with creative solutions to improve the ratio of sales vs. labor costs. Employees then get a pre-negotiated percentage of the resulting savings, unlike a standard profit-sharing arrangement where much of the profits are often diverted to other things before employees get their share.
Look for Any Upside
An example could include any potential tax savings for your company resulting from an increase in your benefits.
"If you are requesting additional funds contributed by your employer into your Health Savings Account, that contribution is deductible in Tampa, Fla. "Talking up potential tax savings is a great selling point for many increased employee benefits."

Realize Some Things are Off-Limits
To a certain extent, your employer's hands may be tied when it comes to some benefits.
"Companies with fully insured benefits plans don't have the luxury to offer you a 'better' health/dental/vision plan than what they offer everyone else, and employers must be careful about what 'extras' they offer so as not to be discriminatory in their benefits offerings," says Roxann Kerr Lindsey, vice president of CBIZ Benefits & Insurance Services of Kansas City, Kan.

Be Creative
If you do run into a dead end with the obvious benefits, think of other strategies.

Focus on Work/Life Benefits
This is an area where employers are often willing to consider giving some extras. Flex time, for example, may be an option.

Think Small
If your employer resists any increase in major benefits, think of small things that could still make your life better. Some of Lindsey's suggestions: reimbursement for parking fees, ability to retain the frequent flier miles earned for company travel or a health club membership. Another idea: See if your employer will cover the cost of an out-of-town seminar or continuing education program. Not only do you get a little getaway, but "this is deductible for the employer, plus they benefit from your increased knowledge."
The Bottom Line
Your salary may be in a holding pattern, but by using your imagination and your best negotiation skills, you may still be able to get a few extra perks that will help make your life a little easier.