Cash instead of health benefits?
I’m currently in the interview process, and the company provides full coverage for health, vision, and dental, plus 70% coverage for dependents.
Since I already have these benefits through my wife’s employer, I’m considering asking for cash in lieu of health benefits. How much would be a reasonable amount to request?
I live in Massachusetts.
RCadmin
When negotiating for cash in lieu of health benefits, it’s important to consider both the value of the benefits you’re giving up and the company’s policies on cash alternatives. Here are some steps to help you determine a reasonable amount to ask for:
Assess the Value of the Benefits: Research the approximate annual cost of the health, vision, and dental insurance that the company provides. You can look up average premiums in Massachusetts or ask for the specific values directly if you feel comfortable doing so.
Consider the Company’s Policy: Some companies have specific policies regarding cash in lieu of benefits, including how much they are willing to pay. It’s helpful to see if the company has established guidelines or if this is a negotiable point.
Market Standards: Investigate what other companies in your industry or area might offer for similar situations. This can give you leverage in negotiations.
Decide on an Amount: Once you have an estimate, you can start lower to allow for negotiation, aiming for an amount that reflects the true value of the benefits you are giving up. Typically, a range of 50-70% of the benefit value could be a reasonable starting point, but this varies widely by company.
Be Clear and Professional: During negotiations, clearly explain your situation and why you’re opting out of the benefits. Highlight that you’re still committed to the position and look for a solution that works for both you and the employer.
Prepare for Alternatives: Be open to alternatives, such as a higher salary rather than a direct cash payment, or other perks like increased paid time off, which might compensate for the absence of health benefits.
After considering these factors, you might propose a cash amount that reflects your calculations while being open to further discussion. Good luck with your negotiation!