Skip to main content
Communication, Art + Technology › Communication
SFU Student

grey paper bag spilling peanuts with the words "pay packet" written on it
The goal with negotiation is finding a solution that both you and your employer can feel good about

As graduation approaches and the onset of summer positions come to the forefront, many soon-to-be employees may be faced with the dreaded conversation about salary and benefits. Before taking a permanent or contract position, job seekers need to understand the, as some would say, art, of negotiating salary and benefits.

According to the University of Toronto employer poll, 74 % of new hires have unrealistic salary expectations. This could, in part, be largely due to a lack of education surrounding how to negotiate salary and benefits, along with what to expect. While all compensation packages, even among different positions within the same organization, vary, there are some standard elements to a benefits package and an art to negotiating them.

Components of a Compensation Package

Compensation packages vary from organization to organization, but there are basic elements that should be included in all packages.

Base salary – this is the compensation received for the job that you have been hired to do, often articulated by dollars per year.

Benefits – these pertain to your physical and financial health, and your lifestyle, . Common benefits include health, vision and dental coverage, pension plan, insurance, daycare, vacation, tuition subsidies and discounts off exercise enrollment.

Bonuses – the more responsibility you have, the more likely your compensation will include bonuses. For those considering some types of sales-based employment, bonuses or commissions may also factor in. Common types of bonuses are profit sharing, gain sharing, instant incentives and recognition awards.

Negotiating for the Compensation Package

When negotiating your compensation package, the first thing to remember is to relax. Human Resource employees are used to negotiating with employees and expect numerous questions. The goal with negotiation is finding a solution that both you and your employer can feel good about. Keep in mind that due to a changing economy, some employers may be unable to negotiate or have begun to cut back on their compensation packages. Be prepared for limited flexibility on the part of the employer as the economy declines.

Prior to Negotiating

Typically the best time to negotiate salary is after you receive the offer and before you accept it, so before coming to the table, do some research:

  1. Research your profession’s average salary range and negotiate based on facts

  2. What is your “best outcome” package? Keep it realistic, but optimistic

  3. What is your “minimum offer” position? When will you reject the job offer?

  4. Determine a target salary range as opposed to a set amount

  5. When application forms ask for your salary and benefits requirements, say "They are negotiable" — without knowing the details about benefits and the position, you can’t accurately select a salary figure.

During Negotiation

When in the negotiation process, there are a few things to consider:

  1. Remember that salary and benefits are about more than just cash. You can negotiate on, for example, healthcare and pension contributions, the number of days of vacation you will receive or even daycare.

  2. Consider the cost of living if you are moving to a new area. If it’s higher, you can suggest that you be paid a differential.

  3. Keep in mind that some components of your compensation package might be non-negotiable. Entry-level positions are often attached to job grades with preset salary ranges. If this is the case, focus on the aspects that might be negotiable including starting date, date of first salary review, mentorship, or education assistance. If you’re unsure, ask what is negotiable.

Questions to Ask

Asking questions are encouraged and a great way to dive deeper into some of the compensation components. You could discover that you can opt out of life insurance and pick up three extra days of vacation. Remember, you won’t know until you ask. Here are a few questions to get you started:

  • When does coverage begin for the various benefits?

  • Does the employee pay for health insurance coverage? If so, how much for individual coverage and/or family coverage? Is the premium deducted from my paycheck? How much is the deductible?

  • Can I review a summary of the health insurance plan options? What restrictions and limitations are there? What about pre-existing conditions?

  • How much sick time, vacation time, and holidays are provided?

  • Are there educational and training benefits? If so, are they available for my family, as well as for myself?

Finally, look to what you value the most when deciding on the compensation package. Base your decision on your individual needs instead of what other people have chosen. Look at the package as a whole; salary, benefits, additional perks, and accept or reject the job based on the whole package as opposed to one aspect of it.

SFU Student
visibility  160
Nov 7, 2010

You Might Like These... Prospective, Professional Development, Career Exploration

Co-op students jumping in the air
The Co-op Connection Helps Retention

In this blog post, Heather shares with us why co-op is an important experience for all students, whether it be to further career aspirations or to gain future employment opportunities. 

author, courtney, smiling
A Second Term in Government: More of the Same?

Having completed my first work term for Health Canada as a Communications Officer Intern, I was eager to try something new, and the government was not where I believed that was going to happen. That is until I was offered a position at Agriculture and Agri-Food Canada...

Working on campus
The 10 Minute Commute – Resources and Useful Information for Working on Campus

Have you ever thought about working in a place that you are familiar with?  Perhaps a Tim Horton’s close by? For many students the idea of working at SFU might be a great option, if you prefer a 10 minute jaunt to work after class or an opportunity to learn more about how a university operates.

You Might Like These... Work Term Extension

person fixing their tie
How to Ask for More Out of Your Position

Deriving inspiration from her first post, "4 Reasons You Won't Regret Working in Customer Service", Sydney is back and ready to share more knowledge with you from her time in retail. In this article, you'll find Sydney's strategy for negotiating wage raises, work-term extensions and permanent positions. 

People posing in front of the SAP compant logo
Boy Meets World: Tripping and Falling into the Tech Industry

Deciding whether to do Co-op or not?  Braedon shares his experience with Co-op and how it can give you a competitive edge.

student in professional attire
4 Reasons Why You Should Work At A Start-up Company

Today, it is fairly difficult for students or new graduates to successfully find an internship, co-op or full-time position. However, start-up companies create a majority of employment in B.C., making them a perfect place for you to set your foot in the door in the industry you want to work in.