It will be hard to accept that you are probably going to start off in a company with only one or two weeks' vacation when you have had thirty days every year since you entered the service. Unfortunately, that's the May it goes. For executives, the time might be negotiable. What softens the blow is that civilians don't count weekends for vacation time, so it is not as bad as it seems. Most companies have plans that increase your vacation time as you remain in the organization for several years.
Paid Holidays
You can generally expect to get eight to ten paid holidays each year, unless you are in the retail trade. Obviously, most stores are open during most holidays and weekends. If you go to work for a company that requires weekend work, you can probably negotiate which weekdays you are given off.
Overtime
Although this is not exactly a benefit, it would be nice to know the company's overtime policy. How much over time is paid, how often it can be expected, and whether it is voluntary or mandatory are good questions to ask.
Automobile
Some sales and executive positions as well as some service industries provide you with a vehicle. This can be a valuable asset if you commute. The savings in gas, insurance, and monthly payments can be substantial. It's important to know if the car can be used for personal business.
Auto Allowance
An allowance in lieu of a vehicle can be a great asset as well. If the amount is fair, it can save you a lot of money and provide some tax advantages as well. You will have to keep accurate records, but it is a solid benefit.
Expenses
If you are required to travel, you will want to learn the miles for expenses. Does the employer reimburse all expenses on the road, or only a portion? Are there limits on where you can stay and eat? Answers to these questions will give you some real insights into corporate policy as it regards people.
Other Compensation
There are several forms of compensation other than a straight salary. Generally, salaried positions offer the most complete package of benefits because you are formally employed by the company. There are other positions, usually in sales or consulting, where you are an agent or are merely providing service to the company. Obviously, if you are self-employed, you can decide what benefits you want to provide for yourself.
Sales people are motivated by money. Consequently, they want to get paid for what they do. Most sales people who work on commission do so because they want to be the masters of their own destinies. If they want a raise, they just work a little harder. If they want time off, they just take it. The amount of money to be made is limited only by desire and need.
Within sales there are several methods of payment. First is straight commission with no salary. These types of positions generally pay the highest percentages of commission and generally require the individual to purchase his own benefits. Next is the draw, which allows the sales person to receive a specified monthly (or weekly) amount, and any sales commissions are deducted from this amount. Benefits might or might not be included. If sales exceed the draw, the higher amount is paid. Finally, there is salary plus commission. In this system, the sales person receives a salary and benefits, and then receives a commission on top of the salary when each sale is completed.
Consultants are paid a negotiated amount to provide a specified service to an organization. This is generally a fixed amount and is paid in either a lump sum or installments over the life of the contract. Benefits are not included because the consultant is really independent. People who work for a consulting firm are usually salaried employees of that company, and compensation would be paid as it would for any other company with accompanying benefits.
If you take a position where you are paid a commission or a consulting fee, you will be responsible for paying not only your own benefits but also your own taxes and Social Security. Social Security will also require you to pay the amount your employer would normally contribute. Be sure to talk to a tax accountant or an attorney to get some help in effectively evaluating those types of compensation packages.
Knowledge Is Power
Remember, knowledge is the key. You can do very well in negotiating and evaluating compensation offers. All you need to do is to gather some information. So check out all of the options and determine what's right for you. You will then feel much more confident in obtaining a fair wage for your services. Don't just take what someone is going to offer. Ask the right questions and be ready to tell them what you're worth.
