What benefits should you negotiate for to support long-term financial stability?

There are designs available for Retirement plans beyond the typical qualified plans (401k, IRA, etc) when you want to contribute more funds to your retirement or when the business doesn't matches your contribution. If you're healthy enough to qualify for lie-insurance, a good alternative under the Executive Compensation is the "Executive Bonus" to pay the premiums for an executive-owned cash value life insurance policy with business dollars. Another option is the "Split-Premium Bonus" to provide a portion of the premium payments for an executive-owned life insurance policy using a combination of business dollars and the executive's personal funds. Adding an Index Universal life insurance policy to your retirement plan is a good idea.

Plans d'épargne et de retraite pour les employés: Offrir des régimes de retraite et des plans d'épargne attrayants peut contribuer à fidéliser les talents et à garantir la continuité opérationnelle de l'entreprise à long terme.

Top C-suite executives can go beyond the rank-and-file qualified plan. Request an analysis to expand the plan contribution limits and the effects of customizing the plan document. A cross-tested profit-sharing plan may offer select groups higher benefits. You can also expand your options by negotiating for individualized non-qualified deferred compensation that goes beyond the limits of the qualified plan. But be sure you understand the terms and tax implications

Negotiating a robust retirement plan is essential for long-term financial stability. By securing contributions towards retirement savings, such as a 401(k) or pension plan, employees can build a nest egg to support them in their later years, ensuring financial security well into retirement.

Here's how you can prioritize long-term financial stability: While most focus on the salary, a robust retirement plan can be a goldmine in the long run. Look beyond the basic 401(k). Ask if the company offers a Roth 401 (k) option, which allows you to contribute after-tax dollars, giving you tax-free income in retirement. Also, don't just settle for the standard company match; negotiate for a higher match percentage. For instance, if the standard is a 3% match, aim for 5%. It might seem small now, but over a career, that difference compounds significantly. Say something like, “I’m planning for long-term financial stability. Could we explore enhancing the retirement match to align with my financial goals?”

A good option is to have a Health Savings Account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in an HSA to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your out-of-pocket health care costs. While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have an HSA-eligible plan (sometimes called a High Deductible Health Plan), generally a health plan that only covers preventive services before the deductible. An HSA may earn interest or other earnings, which are not taxable. Talk with a financial professional to explore the possibilities.

Health insurance coverage is another critical benefit to negotiate for. Comprehensive health insurance helps protect employees from the high costs of medical care, including doctor visits, prescription medications, and hospital stays. This coverage provides peace of mind and financial protection against unexpected health issues, promoting both physical well-being and financial stability.

This is a critical aspect, often overlooked in the negotiations. Don’t just accept the standard plan; delve into details like deductibles, co-pays, and out-of-network coverage. A lower premium plan isn't always better if you're paying more out-of-pocket. If the company offers multiple plans, calculate which is most cost-effective based on your typical annual healthcare usage. You can negotiate for the company to cover a higher percentage of the premium. Try saying, “Given my focus on long-term financial health, ensuring comprehensive health coverage is essential. Can we discuss the company covering a larger portion of the health insurance premium?”

Ask upfront if your new career opportunity allows for Remote work. Telecommuting has been available for decades, but it was during the 2020 health crisis that it became a necessity. Having Flexibility in your work operations allows for better performance and higher productivity. Not all the industries offer this type of flexibility, ask yourself how important that flexibility could be for you.

Highlight your value proposition, Emphasize increased productivity, cost savings for the company, and your commitment to deliver results, all while maintaining work-life balance. Be flexible yet assertive about your needs.

Offering flexible work arrangements can greatly support long-term financial stability. Flexible work options, such as remote work or flexible hours, enable employees to better balance work and personal responsibilities, reducing stress and improving overall job satisfaction. This flexibility can lead to increased productivity and job retention, ultimately contributing to long-term financial stability for both employees and employers.

In today's world, the ability to work flexibly can be a financial game-changer. It can save you significant amounts in commuting costs, allow for a better work-life balance, and even open up secondary income opportunities. Negotiate for the option to work remotely some days of the week, or for flexible hours that suit your productivity peaks. Point out how this flexibility will enhance your performance. For instance, “Flexible work arrangements would not only support my work-life balance but also allow me to be more focused and productive during working hours. Can we incorporate this flexibility into my work schedule?”

Negotiating education assistance benefits can also contribute to long-term financial stability. By providing support for continuing education or professional development programs, employers invest in the skills and expertise of their workforce, enhancing employee capabilities and career advancement opportunities. This investment not only benefits individual employees but also strengthens the organization's competitive edge and long-term success.

This is a great deal for the Employer and the Employee. By negotiating an option for Continuing Education, either by attending to seminars, workshops, master classes, etc. The employee becomes better prepared, the production increases and the Employer optimizes the operations. Sometimes you can even ask for an EMBA paid by the employer, it is a win-win situation. It all come down to the type of position you're applying for at that moment. And remember to ask for the Education Assistance benefit, that will show that you're willing to learn and grow with the company and it may open more doors for you.

Stock options can be a valuable component of a compensation package to negotiate for long-term financial stability. By offering employees the opportunity to purchase company stock at a discounted price or as part of a performance-based incentive program, employers provide a potential avenue for wealth accumulation and participation in the company's growth and success over time.

Negotiating for paid leave benefits is crucial for supporting long-term financial stability and work-life balance. Paid leave, including vacation days, sick leave, and parental leave, allows employees to take time off when needed without sacrificing income. This time away from work promotes well-being and prevents burnout, ultimately contributing to job satisfaction and retention.

In my role as a Financial Executive, I am committed to exceeding performance benchmarks before initiating compensation discussions. Upon demonstrating exceptional results, I believe it is reasonable to consider a competitive annual bonus structured around individual achievements and overall contributions to the company's success. Furthermore, given my responsibilities as a single mother and as a caretaker for my parents, a comprehensive compensation package is vital. Negotiating for health and life insurance, saving fund, educational assistance, and a company vehicle will provide essential support for maintaining long-term financial stability and fulfilling my family obligations.

Don't forget long-term disability insurance. It's an under appreciated benefit considering roughly a third of workers will be disabled at some point in their working lives. I put it right below retirement benefits in order of priorities.

In my role as a Licensed Financial Professional I have the opportunity to talk with many individuals from a vast array of industries, and what works for one person may not be the solution for another person. Every journey requires a personal approach and every stage in our work evolution requires different strategies and course corrections along the way. When it comes down to Financial Stability, talk with people that are already living the type of retirement you ambition, but don't compare your chapter 1 or 2 to their chapter 17 or 18. Those opinions are a good reference, but you should try to book the time with a Licensed Financial Professional to explore the possibilities available and suitable for your specific journey.

To set yourself up for greater long-term financial gains, it’s important to negotiate bonus options into your pay package. If you create significant value for your company that goes beyond the norm, then your employer should be open to you receiving a share of that gain. To achieve this, explore with your manager a lofty goal over a defined period (say 12 months). Then tangibly define the financial benefit to the organisation if you achieve this goal. Once this is done, ask your manager what they believe is a reasonable share that you could receive if you deliver this result. If they agree to this option, capture it in writing. If you do this every year, you will better align your remuneration with the value you provide.

Additionally, when negotiating benefits for long-term financial stability, it's important to consider other factors such as life insurance, disability insurance, commuter benefits, and wellness programs. These benefits provide additional layers of financial protection and support for employees' overall well-being, helping to ensure their long-term financial stability and resilience in the face of unexpected challenges.