Your Cautious Salary Negotiation and Evaluation of Health Care Plans

1. Let the employer say the first number. Realize that this initial offer is most likely below what the company is actually willing to pay.
   
   
2. If you must state a figure, give a range you would consider. Try to watch your employer's body language and overall response to judge whether your range is in the ballpark. Remember, too, that many employers are good actors when it comes to negotiating salaries.
   
   
   
   
3. Be firm when stating your salary requirements, not wishy-washy. Say, "I want X," instead of "Well, I know this is probably too much, but I'd like to make X. Is that a problem?"
   
   
4. If the employer throws out a number, don't just accept it. Respond with "I was hoping for something closer to X." Make sure that "X" is an amount that is actually higher than you think you can get. This leaves room for compromise.
   
   
5. You can discuss your salary in weekly, monthly, or annual terms so long as you understand how the numbers add up or break down.
   
   
6. Should the employer ask what you made at your previous job, try to avoid the question, especially if you are seeking a large hike in pay. If push comes to shove, answer honestly, but explain that your responsibilities in this new position sound like they would be much more challenging.
   
   
7. Ask how often you might expect a salary review.
   
   
8. Find out how large raises are in terms of percentage of overall salary. Remember, the employer may exaggerate this claim.
   
   
9. Don't be lulled into accepting less now if the employer suggests you can renegotiate your salary in three to six months when you've proved yourself. By then you'll have no leverage.
   
   
10. Think about whether you can afford to live on the salary being offered. Be sure to account for state and federal taxes, which will come out of your pay. Remember that the cost of living varies from place to place. A terrific salary for Topeka, Kansas might be impossible to live on in New York City.
    
    
11. Take into consideration benefits such as health insurance, stock options, and vacation time.
    
    
12. Find out whether an amount is deducted from your salary for health insurance.
    
    
13. When negotiating, focus on the qualities you bring to the job rather than the salary. The key is to make the employer feel you are worth the salary you want.
    
    
14. Get promises in writing. ("We'll review your salary in six months," and so on.)
    
    
15. Don't consider Christmas bonuses as part of your salary. You'll receive those bonuses only if the company is doing well and only at the discretion of the employer. Finally, you don't want to have to wait until Christmas to get your money.
    
    
16. If commissions are part of your salary, get some indication of realistic expectations. Remember that the employer will probably highlight the earnings of people who make the most in commissions while downplaying those of people who earn average or below-average commissions.
    
    
17. If you reach a critical impasse in the discussion, ask whether you can think about the salary and get back to the employer. This will provide an opportunity for tensions to subside and for you to assess your options.
    

Evaluate Health Care Plans

When considering a position, be sure to investigate whether your compensation will include any type of health care plan. With medical costs skyrocketing, a good insurance plan can be an important benefit. Employer-provided health care programs can extend varied coverage at differing costs.

Be sure to find out what type of plan, if any, your new employer offers. Determine whether you must pay certain deductibles. Also be sure to ask whether you'll be expected to contribute to the plan in the form of monthly premiums, since some employers pay only a portion of their employee's premiums. You may want to find out if the plan includes life insurance. If you're single with no dependents, this factor will probably be less important to you than if you have a spouse and children. Some of the most common plans being offered by today's employers are:

1. Indemnity Insurance. For years this was the mainstay of benefit programs for American businesses, although recently other options have begun to rise in popularity. Under this type of plan, employees can choose their own doctors and hospitals. You would pay an annual deductible (usually ranging from $100 to $300), after which the insurance pays for 80 percent of the medical bills and you pay the remaining 20 percent. These plans do not cover preventive care such as physical exams or immunizations.
   
   
2. Preferred Provider Organization. This is often part of an indemnity plan and covers most health care costs if the employee goes to a selected doctor or a hospital that has agreed to provide services at a discount. This plan features little or no deductible and often pays as much as 90 to 100 percent of the cost. You must go to the selected health care provider or pay increased fees and deductibles. You may also be required to obtain preapproval for a hospital admission.
   
   
3. Exclusive Provider Organization. Similar to a preferred provider organization, this type of plan has additional restrictions. You can choose, from a list, one primary care physician who decides when and if you need to see a specialist and who monitors all treatment you will receive. This plan is based on the premise that the overseeing physician will protect the insurer from having you receive any unnecessary treatments.
   
   
4. Health Maintenance Organizations. Commonly referred to as HMOs, these insurance plans have gained popularity in recent years because of their emphasis on preventive care. Whereas insurance plans pay for a medical bill after it has been incurred, an HMO operates on a prepaid agreement to provide health care. You are assigned to a doctor who provides your primary care and decides when you need to see a specialist. You pay a small copayment of $5 to $20 for each doctor visit.
   
   
5. In some cases the HMO actually employs the doctor and owns the hospital where patients receive treatment. In other cases the HMO contracts with doctors and clinics to provide health care to HMO members. These providers commonly referred to as Independent Practice Associations, or IPAs, are paid a set monthly fee per patient whether or not the patient requires health services.
   
   
6. Open-ended Health Maintenance Organization. This plan combines components of both HMO and insurance plans. You sign up with an HMO, but you can seek alternative health care for a copayment of 20 percent to 30 percent and a deductible of $100 to $500.