ABSTRACT
One of the most important stages on which one plays is one’s work life. Since most people on average switch jobs 12 times during their careers (U.S. Bureau of Labor Statistics, 2004), the ability to manage the exits and entrances onto that stage and to make decisions concerning if and how to negotiate the compensation package is crucial. By “compensation,” I refer to any issue of relevance and value to the employer or to the employee (whether potential or existing) that can be included in an employment package. Such issues might include those shown in Table 4.1. The variability of the issues included in this list reinforces Milovich and Newman’s (2004) view that compensation typically incorporates issues tied to organizational profitability, employee quality of life, and the viability of the long-term relationship due to employee performance, motivation, satisfaction, and recidivism—and as such involves issues other than mere salary levels. Despite this, Malhotra and Bazerman (2007) have suggested that negotiators’ vulnerability to the “vividness bias,” or the tendency to Potential Compensation Issues https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
Basic pay-related issues
Salary
Overtime pay
Commissions
Signing bonus
Incentive bonus
Profit sharing
401 (k) plan (matcbedor unmatched)
Pension plan
Stock plan
Stock purchase plan
Stock options
Ownership equity
Guaranteed age of retirement
Health benefits
General coverage
Medical insurance
Dental insurance
Vision insurance
Business travel insurance
Life insurance
Accidental death and dismemberment insurance
Disability insurance (short or long terra)
Prescription card
Professional development
Club memberships
Fraternal memberships
Professional associations
Conference fees and expenses
Training programs
Sabbaticals
Vacation and time issues
Vacation time
Sick days
Flextime
Paternity/maternity/family leave
Relocation benefits
Moving expenses
Brokers’ fees
Legal fees
Job search assistance for spouse
Severance packages (golden parachutes)
Temporary housing
Job description and evaluation
Title
Location
Performance review date
Promotion schedule
Perks
Home office expenses
Mobile phone or expenses
Car allowance
Company car or repair
Garage or parking
Tolls
Mileage
Expense accounts
Travel expenses
Company jet usage
Child care/eldercare facilities
Valet services
overweight the importance of the most vivid or prestigious aspects of an employment package lead them to focus most on salary, especially when such aspects are easier to quantify, evaluate, and compare across offers or employee options than issues. The issues listed in Table 4.1 serve as a visual reminder that salary is only one of many potential compensation issues open for negotiation.