Are you frustrated with the lack of results you get from your networking? Are you starting to feel like no one in your town appreciates what you have to offer? Are you thinking that it's a big waste of time? And you don't see what all those experts are talking about? Are you starting to think that networking just doesn't work?
It works. Just ask Ivan Misner, Harvey Mackay, and Keith Ferazzi. And before you starting thinking "oh sure, it works for them because they are famous!" you need to realize that networking is how they became famous. And if it worked for them, it will work for you.
So why isn't networking working for you? Here are five reasons you aren't getting the results you want.
Your Activity Level Lacks Consistency
Ever tried to have a long-distance relationship? It's very difficult, isn't it? Building relationships of any kind, whether romantic or business, takes regular interaction, which builds familiarity and leads to trust. In business, building a foundation of trust means that you are likely to do business with each other and feel more confident in referring others.
Take a hard, objective look at how much networking you truly do. It is very easy to delude ourselves into thinking we are doing more and working harder than we really are. For the most accurate picture of your networking activities, take a month and write down every event, activity and interaction you have. Is it less than one or two activities a month, less than a handful of contacts with your existing network and fewer than three or four new contacts a month? You are definitely not doing enough to stay consistently visible and to deepen relationships. There is no magic number of events or activities, but a lot can happen for you if you just show up.
Try this: Work on increasing your activities to a consistent level before focusing on any other reason.
You Do Not Give First (or Enough)
Do you network with the expectation that you are going to get something every time? Is your first concern about what you are receiving from your contacts? If you don't give first and frequently, people will see you as a salesperson, not a networker.
We might think we are giving, but sales materials and an invitation to a marketing presentation don't count. You must give to other people in a way that doesn't benefit you. "Wait a minute," you ask, "how am I supposed to make a living if I give it all away and if I don't benefit?" First, you're not necessarily giving away your products. The new currency in business today is information, resources, and referrals.
Second, networking is all about developing relationships. If you have a reputation as a helpful person who is a resource and a referrer, people will want to do business with you and they will want their friends to do business with you. You will benefit from giving.
Try this: Give something to one of your contacts every day for a month. Find information about their industry, provide them with a new resource, or send them a business lead.
Your Networking is Inefficient
Do you have a very specific target market? Or do you know who your best client is and where they network? General networking events such as Chamber of Commerce mixers are excellent for meeting a wide range of people. And they are a fabulous way to give to your core contacts (by finding prospects and referrals for them). But if you have a limited amount of time to network, you should be spending that time in the most target-rich environment.
For example, if your product is women's skin care, a salon, or clothing store and you have time for only one luncheon a month, you should be at a women's networking organization event. If you market to doctors, find out when and where the medical association meets.
Another way that we become inefficient with our networking is that we spend too long with people we know at networking events. Certainly you must say "hello" and acknowledge them, but especially at general, open activities, you should focus on getting to know new people. Sometimes we enjoy networking with our existing friends a little too much and forget to not only meet new people, but also help them join our familiar circles.
Try this: Write down every event you go to and the groups you belong to. Are they the right target market for you? Recruit your well-known friends to come with you to search out new faces and help them feel more welcome at your favorite events.
You Don't Follow Up
Do you follow up with everyone you meet, whether or not you think there's business to be done? Like me, you probably have the best of intentions to send note, an email, or make a quick call, but as the days go by it seems less and less relevant. I know that I've personally missed on a lot of opportunities simply because I didn't follow up.
The saying goes "the fortune is in the follow up" but it's probably one of the hardest parts of networking to implement and consistently do. We're simply overwhelmed by the sheer volume of work and information crossing our desk that needs attention now! Following up is important, but it's not urgent, especially if the other person didn't say "call me tomorrow and I'll buy." That generally doesn't happen the first time we meet someone.
Try this: Create the absolutely simplest system you can think of to follow up. If your system is complicated, follow up won't happen. Adopt a "do it now" philosophy, then you won't have to worry about it later.
You Don't Have a Good Tracking System
If I asked to see your contact database, would you show me a shoebox of business cards? Would you even know where the cards were for someone you met a month ago? The problem is not finding the tools to track our contacts. We could keep our cards in a Rolodex and there are dozens of free contact databases available on the Internet.
The problem is getting them into the system in the first place. You are going to either have to site down and type their information in or invest in a card scanner. Then, the hardest part is again, creating a very simple, hole-proof system to get everyone of those people into your contact database. Personally, I am starting to think that it would be worth the money to pay a Virtual Assistant to handle this for me. I would notate on the cards, then hand them over and let her put them into the system. The amount paid would probably return on the investment with the first sale I made because I knew where to find someone's information.
Try this: Search for a system that you feel comfortable with, whether it is your Outlook or an online system. Decide to spend just 5 or 10 minutes a day inputting your contacts and always try to "do it now."
Conclusion
If you are struggling to see the value in your networking activities, there are always methods we can use to fine-tune our activities, habits, and systems. Choose just one item at a time to work on until you feel that you are ready to tackle another. As you start to make changes, you'll begin seeing better results in your networking. Your successes will motivate you to keep improving your networking skills until you are enjoying a great return on your networking investment.
Monday, 2 March 2009
California Visa
If you are considering working in the US, as a health care professional, California may be the place to start. Along with many excellent schools to help you complete U.S. certification in your field (if required), California also has some special programs that make it the place for foreign health care professional to get started.
To put it simply, there is a shortage of medical practitioners in California. If you are a GP, FP, gynecologists, pediatrician, or psychiatrist, you may qualify for the California J-1 exemption. This program was put into place to help fill medical positions within the state.
The key to getting your start in the U.S., with this program, is to understand what the program is, and what's required from you to start.
What Is A J-1 Visa?
A J-1 visa is actually a program that started to encourage foreign nationals to participate in U.S. education and share knowledge and skills in art, science, and education. In recent amendments to the program, it now allows for qualified doctors to enter the country and work in under served areas (such as California). If you are looking to find work in the U.S. this may be the program for you.
Where Am I Permitted To Work If I Have A J-1 Visa?
In California there are 30 applicants to this program allowed into the country to work each year. As a professional working with a J-1 Visa you can expect the following.
1. A contract of at least 3 years work, with work of at least 40 hours per week is required to qualify for this program.
2. Workers with a J-1 visa must be paid a salary similar to that of any other care-giver in their specific field.
3. When you work with a J-1 visa you must be employed in an under served area of the state (lacking in medical professionals). Currently there are 376 under served areas in the State of California.
4. When your work program is completed you may apply for a NIW (national interest waiver) that allows you to continue your work in the U.S.
How Do I Obtain A J-1 Visa?
To obtain a visa to work in California, as a physician, you must first find suitable employment. There are many positions in CA that accept J-1 waiver applicants.
Once you have obtained work, you will be required to work with your employer to fulfill the California Department of Health Services application requirements. There are only 30 positions to be filled each year, and applications run from Sept 01 thru to Oct 30 each year.
If you are considering starting your career in the US with this program it is suggested that you apply as early as you can. This will ensure that you get your application in and can begin your career in California.
To put it simply, there is a shortage of medical practitioners in California. If you are a GP, FP, gynecologists, pediatrician, or psychiatrist, you may qualify for the California J-1 exemption. This program was put into place to help fill medical positions within the state.
The key to getting your start in the U.S., with this program, is to understand what the program is, and what's required from you to start.
What Is A J-1 Visa?
A J-1 visa is actually a program that started to encourage foreign nationals to participate in U.S. education and share knowledge and skills in art, science, and education. In recent amendments to the program, it now allows for qualified doctors to enter the country and work in under served areas (such as California). If you are looking to find work in the U.S. this may be the program for you.
Where Am I Permitted To Work If I Have A J-1 Visa?
In California there are 30 applicants to this program allowed into the country to work each year. As a professional working with a J-1 Visa you can expect the following.
1. A contract of at least 3 years work, with work of at least 40 hours per week is required to qualify for this program.
2. Workers with a J-1 visa must be paid a salary similar to that of any other care-giver in their specific field.
3. When you work with a J-1 visa you must be employed in an under served area of the state (lacking in medical professionals). Currently there are 376 under served areas in the State of California.
4. When your work program is completed you may apply for a NIW (national interest waiver) that allows you to continue your work in the U.S.
How Do I Obtain A J-1 Visa?
To obtain a visa to work in California, as a physician, you must first find suitable employment. There are many positions in CA that accept J-1 waiver applicants.
Once you have obtained work, you will be required to work with your employer to fulfill the California Department of Health Services application requirements. There are only 30 positions to be filled each year, and applications run from Sept 01 thru to Oct 30 each year.
If you are considering starting your career in the US with this program it is suggested that you apply as early as you can. This will ensure that you get your application in and can begin your career in California.
Visit Santa Monica California
The beach city of Santa Monica, California with it's average year round temperature of about 68 degrees Fahrenheit, good air quality, 245 acres of state beach, over 3,800 hotel rooms, numerous restaurants and abundant shopping is not only a destination for millions of Southern California day-trippers, it is also a popular destination for vactioners from all over the United States and the world. The city is also home to the Santa Monica Pier, where you can fish day and night, watch the waves, view the wonders of the undersea world at the Santa Monica Pier Aquarium, dance under the stars to music from big name bands and musicians (summers, Thursday nights only), ride the Ferris wheel, ride a carousel horse or a roller coaster, dine in an ocean view restaurant, entertain yourself at an arcade, watch street performers, jugglers and roller bladers, and shop for souvenirs. For shopping you can go to the Third Street Promenade, an outdoor, pedestrian-only shopping and entertainment destination where you can spend the whole day. There are more shops are on adjacent boulevards and neighboring 2nd and 4th street. You can also visit Santa Monica Place, a tri-level skylit galleria housing 570,000 square feet with 120 shops and eateries. There is more shopping on Pico Blvd., Montana Ave. and Main Street. There are accomodations in every price range from inexpensive motels like the Travelodge Santa Monica on Pico Boulevard to luxury hotels like the Hotel Oceana Santa Monica, The Fairmont Miramar Hotel, Le Merigot, Shutters on the Beach and Loews Santa Monica Beach Hotel. Dine in an inexpensive coffee shop, have a Fat Burger or some Mexican fast food or dine in more expensive restaurants like Melisse, Valentino, The Lobster, Il Ristorante di Giorgio Baldi, Josie, Chinois on Main, Rockenwagner Brasserie, Sam's by the Beach, The Beach House, Drago and many more. Check out the male and female weight lifters and body builders at Muscle Beach with it's free weights, rings, parallel bars, balance bar, and other gymnastics apparatus. Play or watch people play chess at Chess Park with its 14 large tables with 4 chess boards per table and 10 small tables with 1 chess board per table. Go surfing in the Pier, Bay Street and Rose Ave. beach areas.
Minimum wage in California
Minimum wage is standard amount of salary that an employee of a particular jurisdiction must receive for bestowing his services for a certain period. With some exceptions, all individuals working in California must receive minimum wages as stated under the state law. As of January 1, 2007, the minimum wage was set at $7.50 per hour of service rendered to a company and would increase to $8.00. Some of the exceptions are the following:
External sales individuals
Immediate family of the employer such as parent, sibling, spouse and child
Trainees who are commissioned under the State Division of Apprenticeship Standards
Learners who have not been employed in similar jobs (would receive salaries not less than 85% of the minimum wage until they have completed 160 work hours)
Mentally or physically challenged employees
Employees of a non-profit organization
Note: Employers may apply for their special license with the Division of Labor Standards Enforcement if they wish to avail these exemptions.
All employers in California are obliged to follow the state minimum wage law provisions. However, there are cases wherein some companies are subjected to both the federal and state rules. Hence, the law affirmed that the employers must stick to the wage standard that will be more advantageous to their employees.
Nonetheless, because it happened that, the minimum wage in California is much higher than the rate required by the federal law; employers must abide by the state minimum wage rate. Failure to comply with this standard makes a company culpable of an offense that may cause them serious legal predicaments.
An employee who has been underpaid may either file his wage claim with the DLSE or bring a lawsuit in court to recover his lost wages from his unruly employer. The complete statutes are specified under the Labor Code of California.
Following the submission of a wage claim with the local DLSE office, the case will be brought under the determination of the Deputy Labor Commissioner who has the authority to refer or dismiss a wage claim. His decision would be based upon the conditions raised and evidences presented by the complainant.
In an event that the deputy commissioner decided to have the case be heard, both the complainant and his employer will be notified when and where the hearing would take place. The conference aims to determine whether the claim is valid and find out if the issue may be resolved without filing a lawsuit.
If either party did not agree to the decision of the Labor Commissioner or both of them fail to reach an agreement, it is the time for a court trial to be scheduled. The employee then necessitates a minimum wage claim attorney to ensure that his rights under the law would be properly observed.
External sales individuals
Immediate family of the employer such as parent, sibling, spouse and child
Trainees who are commissioned under the State Division of Apprenticeship Standards
Learners who have not been employed in similar jobs (would receive salaries not less than 85% of the minimum wage until they have completed 160 work hours)
Mentally or physically challenged employees
Employees of a non-profit organization
Note: Employers may apply for their special license with the Division of Labor Standards Enforcement if they wish to avail these exemptions.
All employers in California are obliged to follow the state minimum wage law provisions. However, there are cases wherein some companies are subjected to both the federal and state rules. Hence, the law affirmed that the employers must stick to the wage standard that will be more advantageous to their employees.
Nonetheless, because it happened that, the minimum wage in California is much higher than the rate required by the federal law; employers must abide by the state minimum wage rate. Failure to comply with this standard makes a company culpable of an offense that may cause them serious legal predicaments.
An employee who has been underpaid may either file his wage claim with the DLSE or bring a lawsuit in court to recover his lost wages from his unruly employer. The complete statutes are specified under the Labor Code of California.
Following the submission of a wage claim with the local DLSE office, the case will be brought under the determination of the Deputy Labor Commissioner who has the authority to refer or dismiss a wage claim. His decision would be based upon the conditions raised and evidences presented by the complainant.
In an event that the deputy commissioner decided to have the case be heard, both the complainant and his employer will be notified when and where the hearing would take place. The conference aims to determine whether the claim is valid and find out if the issue may be resolved without filing a lawsuit.
If either party did not agree to the decision of the Labor Commissioner or both of them fail to reach an agreement, it is the time for a court trial to be scheduled. The employee then necessitates a minimum wage claim attorney to ensure that his rights under the law would be properly observed.
Visiting Northern California
It would require the writing skill of a Shakespeare or Thomas Hardy to describe the diversity of Northern California. For, Northern California offers a whole variety of entertain, visual delights, cuisine, and so much of history.
The beauty of Northern California lies in its silvery beaches, diverse marine, the awe inspiring forests of tall sequoia and redwood trees, the towns, now forlorn, which at one teemed with prospectors of goal and silver.
California is easily accessible. If you are planning a trip to Northern California, and wish to avoid the routine and often mundane tours, and wish to plan your own trip, with no specific agenda, then RV camping is ideal for you. Be warned however that during the summer months Northern California gets heavily booked, and woe betide you, if you don't book in advance.
Be sure to book well in advance at the right place. Find out which places in North California have good, well maintained RV camps, and you can book a place for your RV, what facilities are offered and so on. Please go into detail, because if you land up in the wrong place, instead of having a holiday, you would be spending a nightmarish experience. The best place for taking an RV is generally in the Sequoia National Park and the Redwood National Park. They have good hook up facilities and ease of access. Make sure that the dimensions of your RV are such you can get in and out without having to content with outsized RVs! It has happened to many, and sure, you would want to avoid it.
You can even think of camping your RV on the beaches of California. There are some very good beaches where you can park your RV, but again, you need to call in first and book yourself a good camping place with all the attendant facilities that you need. You can think of Fort Braggs Beach and the Half Moon Bay. These are the more popular ones, but you can discover more suitable for yourself.
We mentioned earlier that another great attraction of Northern California is its ghost towns, that were once a hotbed of activity with prospectors for gold. Some people like to camp out here in the old ghost towns. Bodie is one such town.
Sacramento, the historical capital also attracts visitors in very large number of months. You can of course choose to stay in one of the large many hotels of the town, but if you think it cramps your style, you can use your RV in one the camps that are available just outside the city.
Before beginning your trip, make sure your RV is in good condition, and that the air conditioning is working perfectly. Northern California can become very hot and humid so checking your air conditioner is a must.
Again it bears repetition that if you are planning a trip to North California you need to make firm bookings whether it is for an RV or even an hotel room. And if you are taking your family with you, do make sure very much that all your travel plans are in good shape and everything is finalised and you are holding confirmed bookings.
The beauty of Northern California lies in its silvery beaches, diverse marine, the awe inspiring forests of tall sequoia and redwood trees, the towns, now forlorn, which at one teemed with prospectors of goal and silver.
California is easily accessible. If you are planning a trip to Northern California, and wish to avoid the routine and often mundane tours, and wish to plan your own trip, with no specific agenda, then RV camping is ideal for you. Be warned however that during the summer months Northern California gets heavily booked, and woe betide you, if you don't book in advance.
Be sure to book well in advance at the right place. Find out which places in North California have good, well maintained RV camps, and you can book a place for your RV, what facilities are offered and so on. Please go into detail, because if you land up in the wrong place, instead of having a holiday, you would be spending a nightmarish experience. The best place for taking an RV is generally in the Sequoia National Park and the Redwood National Park. They have good hook up facilities and ease of access. Make sure that the dimensions of your RV are such you can get in and out without having to content with outsized RVs! It has happened to many, and sure, you would want to avoid it.
You can even think of camping your RV on the beaches of California. There are some very good beaches where you can park your RV, but again, you need to call in first and book yourself a good camping place with all the attendant facilities that you need. You can think of Fort Braggs Beach and the Half Moon Bay. These are the more popular ones, but you can discover more suitable for yourself.
We mentioned earlier that another great attraction of Northern California is its ghost towns, that were once a hotbed of activity with prospectors for gold. Some people like to camp out here in the old ghost towns. Bodie is one such town.
Sacramento, the historical capital also attracts visitors in very large number of months. You can of course choose to stay in one of the large many hotels of the town, but if you think it cramps your style, you can use your RV in one the camps that are available just outside the city.
Before beginning your trip, make sure your RV is in good condition, and that the air conditioning is working perfectly. Northern California can become very hot and humid so checking your air conditioner is a must.
Again it bears repetition that if you are planning a trip to North California you need to make firm bookings whether it is for an RV or even an hotel room. And if you are taking your family with you, do make sure very much that all your travel plans are in good shape and everything is finalised and you are holding confirmed bookings.
Dress for Success
Have you recently endured long hours of interviews and managed to land a job offer? Hats off to you for a job well done in getting a new job! Facing new challenges is a thrilling experience. Being chosen out of many applicants, especially during these trying economic times, is indeed an accomplishment. All you have to do now is to make sure that your career is off to a good start by projecting a professional image and dressing the part.
Improving Your Image And Career Advancement:
John Malloy, an image consultant, performed numerous research that confirms the impact of how being dressed properly affects a persons career.
A specific experiment was performed to see the extent of how a persons success can be affected by his clothing. Molloy assigned a male who was 28 years of age to go to the train stations of New York to ask people to give him $1.25 to pay for his fare since he forgot to bring his wallet. The 28 year old man did this for an hour as he was dressed in plan jeans and a t-shirt and in a suit and tie. He was able to collect the least amount of $8.38 while wearing plain clothes and four times as much while wearing a suit and a tie. And he made only one dollar more when he was wearing a blue-collar necktie than when he was wearing jeans and a t-shirt.
This experiment only goes to show that classic business necktie patterns, ones that have small patterns, solids, and stripes, are a better option for you to wear if you want career advancement.
The study by Molloy study confirms that your clothing can indeed improve your image and your career. Let me help you with some pointers on what you can wear to work to boost your new career.
What to Wear:
You need to do research on what to wear. You cant just close your eyes and pick out the winning lottery from your closet, plan what you should. There are a lot of factors when you are choosing the correct outfit. What line of business is your work in? How do the bosses dress? Get the feel of the company's culture and you will be able to base what to wear from their apparent dress code.
If you want to become a boss then dress like your boss. Learn what stores they buy their clothing from and purchase from the same stores the next time you shop. Remember that your bosses will be the ones to assess whether or not you will get a promoted and the decision will most likely be positive if they see themselves in you, not just performance wise but image wise too. Investing on how you look and how you dress are essential if you want success.
What Not to Wear:
Dont worry about looking savvier looking than your boss, just don't over dress and make everybody else look like slobs. Just make sure you are not dressed too far from the office dress code norm. Being under-dressed is just as ill advised as being over-dressed, even on Fridays when offices usually dress down into casual attire. It is better to look a tad bit over dressed though than to look too casual. But never wear a black bow tie along with a black suit; a nice necktie will be your best option.
If your new job will require plenty of travel, it is best to learn how to neatly fold your suit, shirt, and tie so they wont get crumpled and you would still look impeccable when you show up for out of town business meetings.
Improving Your Image And Career Advancement:
John Malloy, an image consultant, performed numerous research that confirms the impact of how being dressed properly affects a persons career.
A specific experiment was performed to see the extent of how a persons success can be affected by his clothing. Molloy assigned a male who was 28 years of age to go to the train stations of New York to ask people to give him $1.25 to pay for his fare since he forgot to bring his wallet. The 28 year old man did this for an hour as he was dressed in plan jeans and a t-shirt and in a suit and tie. He was able to collect the least amount of $8.38 while wearing plain clothes and four times as much while wearing a suit and a tie. And he made only one dollar more when he was wearing a blue-collar necktie than when he was wearing jeans and a t-shirt.
This experiment only goes to show that classic business necktie patterns, ones that have small patterns, solids, and stripes, are a better option for you to wear if you want career advancement.
The study by Molloy study confirms that your clothing can indeed improve your image and your career. Let me help you with some pointers on what you can wear to work to boost your new career.
What to Wear:
You need to do research on what to wear. You cant just close your eyes and pick out the winning lottery from your closet, plan what you should. There are a lot of factors when you are choosing the correct outfit. What line of business is your work in? How do the bosses dress? Get the feel of the company's culture and you will be able to base what to wear from their apparent dress code.
If you want to become a boss then dress like your boss. Learn what stores they buy their clothing from and purchase from the same stores the next time you shop. Remember that your bosses will be the ones to assess whether or not you will get a promoted and the decision will most likely be positive if they see themselves in you, not just performance wise but image wise too. Investing on how you look and how you dress are essential if you want success.
What Not to Wear:
Dont worry about looking savvier looking than your boss, just don't over dress and make everybody else look like slobs. Just make sure you are not dressed too far from the office dress code norm. Being under-dressed is just as ill advised as being over-dressed, even on Fridays when offices usually dress down into casual attire. It is better to look a tad bit over dressed though than to look too casual. But never wear a black bow tie along with a black suit; a nice necktie will be your best option.
If your new job will require plenty of travel, it is best to learn how to neatly fold your suit, shirt, and tie so they wont get crumpled and you would still look impeccable when you show up for out of town business meetings.
USA Job offer - Is it viable ?
You're a college student recently having gone through the exciting process of how to find a job or college internship: interviewing, traveling, interviewing some more, and finally all the hard work has paid off with a job offer!
People often receive more than one offer, and a lot of times they look only at the basic salary to compare them. Sadly, by doing this, they may be missing out on a lot of other forms of compensation that may be available, ultimately missing out on a better offer that was on the table.
I hope to use this article to show you how to find the hidden values in an offer, and how to assess the various components of an offer. Hopefully you can avoid the trap of mistakenly passing up a fantastic offer just because the basic salary was a few dollars less than another offer!
Let's start by looking at what the basic sources of compensation from an offer are:
Basic Salary -- Everyone looks at this first, and rightfully so. This is your take-home every month and is the bulk of your compensation. Some companies look to this exclusively to attract people. Recently, the "big oil" companies have been ramping up their base salary for engineers, causing other companies to put their arms up in wonder. However, don't get discouraged (or excited) just off ofyour base salary alone, you must consider the whole picture!
Signing Bonus -- These are becoming more and more popular as a way to entice people to work for a company. These can be anywhere from $1,000 all the way up to $25,000 or more! (I just heard the other day of a girl getting a $24,000 signing bonus for a major oil service company!). A lot of times, companies would rather give you a larger signing bonus than a higher basic salary, so watch out for that trap too. Think about it, would you rather have $3,000 in your pocket today, or $1,500 more in your salary each year? If you can, take the salary increase, it will pay off tenfold in the long run.
Health Care -- This includes not only health coverage, but dental, life insurance, vision, etc. Look carefully at these, not all companies are equal in what they provide!
Other benefits that can be extremely undervalued:
Performance Bonuses -- Pay for performance is an extremely useful company tool, but it's application is hit or miss. Depending on the job, this could be huge ' some sales jobs are all commission based, whereas other jobs (pure engineering) are functional and therefore performance is harder to measure, so a bonus can be as small as a few hundred dollars just because the company did well. Either way, make sure you are clear on what the expectations and resulting payouts could be for the offer you are looking at.
Free on-site gym -- These can be worth at least $150 per year, not including any special courses (think Yoga, Dance, Pilates, etc). They also save you on gas and time it takes to travel to an off-site gym, so consider that too.
401k Matching -- Almost every company matches your contributions to a retirement plan, but not every company matches equally. (A quick lesson on 401k plans in case you haven't heard of them before: a 401k plan is a pre-tax contribution you make to an account that you can then invest in a number of different ways. The money you accrue goes with you when you change jobs, and when you retire, you start withdrawing it to live off of). The differences you will find between companies are in the amount they will match, some will match nothing, some up to 15% (i.e. if you contribute 6% of your salary each year, they will "match" your contribution by contributing 6% as well, making your contribution a total of 12%). Obviously, the higher the match, the more money you will end up with in the end. However, don't be discouraged by a company that doesn't offer a very high match, as they may also have a company pension plan to supplement the 401k plan. These pensions are usually based on years of service to the company; the longer you work there, the higher the eventual payment. The downside is that in today's world, not many people are staying with the same company for 30+ years. I heard recently that the average stay at a company is now down to around 5 years. Keep this in mind when you weigh a pension plan to supplement a 401k.
Company-paid Car -- My good friend Tom had a company car for the first 12 years of his career, and it really made the difference in his wealth building. You can roughly estimate that the value of the car is at least $350 per month, plus gas (about $100 per month), plus insurance (about $150 per month). Add all that up, and it's a $600 value per month that you do not have to pay. Not only that, but the money you would spend on your vehicle is after-tax money, meaning that instead of it costing you $600 per month, it really costs closer to $900 per month. Add all that up, and it amounts to at least $10,800 per year. Imagine what you could do with that: save it, invest it, pay down student loans, buy yourself jewelry, go on a luxury trip to Hawaii. You can see why I say it's underrated.
Company Discounts -- Be sure to ask about these! Most companies have a deal with cell phone providers for a monthly discount on plans, usually 10-20%. Some companies have supplier-discount arrangements with automotive manufacturers, which amounts to getting cars at invoice prices (without having to negotiate!)-That allowed me to get a car for $21,000 including tax, license, etc, when MSRP on it was $24,500. Most companies give you a discount on their own products too. Other companies have an employee stock purchasing system, where you can purchase company stock at a reduced price (Think along the lines of a 30% discount or more!). This just scratches the surface of what might be available if you ask the question to your company recruiter.
Travel -- With some jobs requiring traveling multiple weeks in a row, some companies allow you to fly anywhere you want over the weekend, provided the ticket cost is the same or less than it would be to fly home. This can mean a free company-paid vacation (without the hotel of course). Also included with high-travel jobs are the frequent flier miles and hotel points you accumulate. Several people in my company who travel significantly rarely have to pay for their hotels or flights when they go on personal vacations. Think about that, a near-free vacation!
Company Location -- Clearly cost of living is what matters here. Locations like the east coast and southern California can require 10-20% more compensation to achieve the same standard of living that you can have elsewhere. More tangibly, a nice house in Houston, TX can be as inexpensive as $100,000. A comparable house in Los Angeles is $500,000. Can you afford the difference?
The list goes on, and you probably get the picture by now. The general idea when comparing multiple offers is that you really need to do your homework with companies before making a decision. Take the time to make the phone call or send the email to ask what benefits are available at that particular company. I can't imagine a company that would not tell you what is offered, as they will be trying to create the most value to you that they can.
To get the total value of the offer, make a spreadsheet or list of everything that is offered, along with its potential value to you. Do this for each of your offers and then compare them. Be careful though that each one of your spreadsheets contains similar data and is "apples to apples."
You can then use this comparison in your negotiations with companies, but that's another story
People often receive more than one offer, and a lot of times they look only at the basic salary to compare them. Sadly, by doing this, they may be missing out on a lot of other forms of compensation that may be available, ultimately missing out on a better offer that was on the table.
I hope to use this article to show you how to find the hidden values in an offer, and how to assess the various components of an offer. Hopefully you can avoid the trap of mistakenly passing up a fantastic offer just because the basic salary was a few dollars less than another offer!
Let's start by looking at what the basic sources of compensation from an offer are:
Basic Salary -- Everyone looks at this first, and rightfully so. This is your take-home every month and is the bulk of your compensation. Some companies look to this exclusively to attract people. Recently, the "big oil" companies have been ramping up their base salary for engineers, causing other companies to put their arms up in wonder. However, don't get discouraged (or excited) just off ofyour base salary alone, you must consider the whole picture!
Signing Bonus -- These are becoming more and more popular as a way to entice people to work for a company. These can be anywhere from $1,000 all the way up to $25,000 or more! (I just heard the other day of a girl getting a $24,000 signing bonus for a major oil service company!). A lot of times, companies would rather give you a larger signing bonus than a higher basic salary, so watch out for that trap too. Think about it, would you rather have $3,000 in your pocket today, or $1,500 more in your salary each year? If you can, take the salary increase, it will pay off tenfold in the long run.
Health Care -- This includes not only health coverage, but dental, life insurance, vision, etc. Look carefully at these, not all companies are equal in what they provide!
Other benefits that can be extremely undervalued:
Performance Bonuses -- Pay for performance is an extremely useful company tool, but it's application is hit or miss. Depending on the job, this could be huge ' some sales jobs are all commission based, whereas other jobs (pure engineering) are functional and therefore performance is harder to measure, so a bonus can be as small as a few hundred dollars just because the company did well. Either way, make sure you are clear on what the expectations and resulting payouts could be for the offer you are looking at.
Free on-site gym -- These can be worth at least $150 per year, not including any special courses (think Yoga, Dance, Pilates, etc). They also save you on gas and time it takes to travel to an off-site gym, so consider that too.
401k Matching -- Almost every company matches your contributions to a retirement plan, but not every company matches equally. (A quick lesson on 401k plans in case you haven't heard of them before: a 401k plan is a pre-tax contribution you make to an account that you can then invest in a number of different ways. The money you accrue goes with you when you change jobs, and when you retire, you start withdrawing it to live off of). The differences you will find between companies are in the amount they will match, some will match nothing, some up to 15% (i.e. if you contribute 6% of your salary each year, they will "match" your contribution by contributing 6% as well, making your contribution a total of 12%). Obviously, the higher the match, the more money you will end up with in the end. However, don't be discouraged by a company that doesn't offer a very high match, as they may also have a company pension plan to supplement the 401k plan. These pensions are usually based on years of service to the company; the longer you work there, the higher the eventual payment. The downside is that in today's world, not many people are staying with the same company for 30+ years. I heard recently that the average stay at a company is now down to around 5 years. Keep this in mind when you weigh a pension plan to supplement a 401k.
Company-paid Car -- My good friend Tom had a company car for the first 12 years of his career, and it really made the difference in his wealth building. You can roughly estimate that the value of the car is at least $350 per month, plus gas (about $100 per month), plus insurance (about $150 per month). Add all that up, and it's a $600 value per month that you do not have to pay. Not only that, but the money you would spend on your vehicle is after-tax money, meaning that instead of it costing you $600 per month, it really costs closer to $900 per month. Add all that up, and it amounts to at least $10,800 per year. Imagine what you could do with that: save it, invest it, pay down student loans, buy yourself jewelry, go on a luxury trip to Hawaii. You can see why I say it's underrated.
Company Discounts -- Be sure to ask about these! Most companies have a deal with cell phone providers for a monthly discount on plans, usually 10-20%. Some companies have supplier-discount arrangements with automotive manufacturers, which amounts to getting cars at invoice prices (without having to negotiate!)-That allowed me to get a car for $21,000 including tax, license, etc, when MSRP on it was $24,500. Most companies give you a discount on their own products too. Other companies have an employee stock purchasing system, where you can purchase company stock at a reduced price (Think along the lines of a 30% discount or more!). This just scratches the surface of what might be available if you ask the question to your company recruiter.
Travel -- With some jobs requiring traveling multiple weeks in a row, some companies allow you to fly anywhere you want over the weekend, provided the ticket cost is the same or less than it would be to fly home. This can mean a free company-paid vacation (without the hotel of course). Also included with high-travel jobs are the frequent flier miles and hotel points you accumulate. Several people in my company who travel significantly rarely have to pay for their hotels or flights when they go on personal vacations. Think about that, a near-free vacation!
Company Location -- Clearly cost of living is what matters here. Locations like the east coast and southern California can require 10-20% more compensation to achieve the same standard of living that you can have elsewhere. More tangibly, a nice house in Houston, TX can be as inexpensive as $100,000. A comparable house in Los Angeles is $500,000. Can you afford the difference?
The list goes on, and you probably get the picture by now. The general idea when comparing multiple offers is that you really need to do your homework with companies before making a decision. Take the time to make the phone call or send the email to ask what benefits are available at that particular company. I can't imagine a company that would not tell you what is offered, as they will be trying to create the most value to you that they can.
To get the total value of the offer, make a spreadsheet or list of everything that is offered, along with its potential value to you. Do this for each of your offers and then compare them. Be careful though that each one of your spreadsheets contains similar data and is "apples to apples."
You can then use this comparison in your negotiations with companies, but that's another story
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