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andrea
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Posted: Tue Sep 9th, 2008 07:29 pm |
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I am negotiating a salary for part-time work right now. I have worked for this company in the past. I used to be full-time with benefits, then part-time with benefits (except health) after becoming a mom. I took a year off last year and am negotiating going back. We have agreed on a base salary, without considering benefits. I will be working 20-25 hours/week, but benefits don't kick in until you hit 30 hours/week.
They will pay me an hourly wage based on my salary and the hours will be based on project need, so they will fluctuate - sometimes more, sometimes less.
However, new policy is no benefits - no vacation, no paid holiday, no sick, no health insurance - unless you meet that 30 hours. And the kicker is, although I have an existing 401K with them, I have to wait a year until I can activate my account again.
On one hand, I feel very lucky that they are willing to work with my schedule. On the other hand, I know I am a deal for them monetarily since they don't have to pay any benefits. I told them I would need to reconsider the salary number based on the fact that I don't have any benefits anymore. I don't anticipate hitting 30 hours regularly anytime soon, so I don't think that the situation (with the exception of 401K in a year or so) will change. Any ideas as to how to handle this in salary negotiation? Do people usually get an extra bump in pay if they don't have benefits, or is it the price of schedule flexibility?
Thanks!
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Nanner
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| Joined: | Thu Apr 15th, 2004 |
| Location: | Massachusetts USA |
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Posted: Tue Sep 9th, 2008 08:29 pm |
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One way to do it is figure out the $ value of the vacation time & other benefits that you will not be getting and prorate the amount based on the # of hours worked.
Or would your former employer entertain the idea of you doing contract work, and not be an actual employee? Then you can negotiate an hourly rate from there. Come tax-time, you will need to file differently than as an employee.
Not really a straightforward answer to this. You are getting the benefit of some flexibility and the company is losing the "convenience" of having you in the office 40 hrs/week.
Sounds like the firm values you and that is great they want you back.
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NewSchool
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| Joined: | Thu Jul 21st, 2005 |
| Location: | Architect, Nebraska USA |
| Posts: | 307 |
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Posted: Mon Sep 15th, 2008 08:43 pm |
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| Back in 2003, I was contracting for $25 per hour. Naturally, I paid taxes... 1099.
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Alright
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| Joined: | Tue Feb 6th, 2007 |
| Location: | A R C H I T E C T !!!, Houston, Texas USA |
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Posted: Thu Oct 2nd, 2008 05:20 am |
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Nanner wrote:
Not really a straightforward answer to this. You are getting the benefit of some flexibility and the company is losing the "convenience" of having you in the office 40 hrs/week.
There is some validity to this. I would still imagine your hourly rate should be higher than what it was when you had full benefits.
If full medical + retirement benefits ran them $10K/year before when you were working 40+ hours per week, and you are now going to work 25 then your expected benefit equity should be about $6,200 if it were proportional.
So take $6,200 divided by hours worked per year (25*52 = 1300) = about $4.50 per hour expected increase.
So if you were earning $25/hr. before with full benefits working full time, you may be worth $30/hr. now. But I think that would be the best case scenario.
As others have pointed out, they are losing value on you due to the fact that they can't expect to expect you there during crunch time every week. So maybe you are worth only $2 or $3 more per hour now.
It's one of those things that's very hard to calculate. Like the current value of a home. The value is determined by the market and the seller will ultimately come down and the buyer go up until an agreement is met.
But if I were negotiating with them I would point out that you are losing $5K-$10K per year by not being fully-benefitted. See if they go for the $5/hr. increase. At least make them give a counter-argument. You're only being reasonable and some sort of rational agreement will be made in short order.
Good luck!
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