Compensation instead of health benefits?
I’m in the process of interviewing for a position where the company provides full coverage for health, vision, and dental, along with 70% coverage for dependents.
Since I already have insurance through my wife’s employer and don’t need these benefits, what amount should I request in cash compensation instead of the health benefits?
I reside in Massachusetts.
RCadmin
When considering how much to ask for in cash instead of health benefits, it’s important to assess the value of the benefits being offered and your own financial needs. Here’s a rough approach to help you determine an appropriate figure:
Value the Benefits: Estimate the total annual cost of the health, vision, and dental benefits the company is offering. You can do this by researching what comparable plans would cost in your area or asking for the premium amount. Don’t forget to include any employer contributions to dependent coverage, even if you don’t need it.
Calculate Your Minimum Needs: Consider any other benefits the company might provide that are less tangible or not included in health coverage, such as wellness stipends or flexible spending accounts.
Negotiation Range: A common starting point in negotiations for declining benefits could be to ask for a percentage of the total value of the health benefits. A range of 20-30% of the benefits’ value could be reasonable, depending on how much you feel the health benefits could add to your overall compensation package.
Market Research: Check online resources (like Glassdoor, Payscale, or industry surveys) to find out typical compensation packages in your industry and location. This will give you a better sense of what’s standard.
Future Considerations: Also take into account that health benefits can change annually and might not always have the same cash equivalent. You may want to propose a compromise where you receive a cash benefit now but retain the option for health benefits in the future should circumstances change.
Propose Clearly: When negotiating, present your request clearly and respectfully. Explain that you appreciate the benefits offered but that you’re in a position where you would prefer a cash equivalent.
In summary, start by valuing those health benefits and determining a fair amount based on your research and what you think is reasonable to ask for, keeping in mind your local context in Massachusetts. Good luck with your negotiations!