Many companies offer financial support and benefit opportunities that can help you reach your financial goals faster. From negotiating a raise to leveraging sponsored education, take some time to research what your employer offers that can help you supercharge your financial progress.
Negotiating Raises and Bonuses
If you have been working for your employer for a while and feel as though your salary does not fully represent your contributions to the company, consider negotiating a raise or additional benefits with your boss.
When preparing to negotiate a raise, start by making a list of your specific accomplishments and contributions to the company. Try to keep a personal log of your significant contributions from day one, such as how you saved the company money, increased sales, or improved a business process. Record key details, such as numbers and facts to really prove your worth to the team and how you have gone above and beyond the call of duty. When it comes time to negotiate a raise, pick 5-7 of your most impactful accomplishments and present them to your boss alongside other factors such as additional training or education you have recently received.
The next step in preparing for the negotiation is determining the salary you would like to be paid. To do so, research what others in your field are paid and what your position is worth, taking these factors into account you can determine what you think you should be paid. Consider also suggesting new benefits or perks if you are willing to negotiate on things such as vacation time, stock options, or bonuses.
Once you feel prepared, choose the perfect time to pitch your raise. This could be after an annual performance review or after you’ve done well on a recent project. Essentially, the best time is when your boss already has a positive view of your work. When you finally approach the subject, make sure to do so professionally and know when to take no for an answer.
Expensing Develop, Education, and Training
Many employers sponsor employee training and development, viewing it as a valuable investment for the company. Take some time to research if your company offers tuition assistance or reimbursement for education such as classes that are directly related to the job, an MBA, or other advanced degree programs. Many employers who offer education assistance may also allow employees to work flexible schedules so they can balance their education and work obligations. If your company does offer these options, it can be a valuable opportunity to take advantage of in order to grow your skill set, negotiate a raise, or find a better job in a few years.
Employee Stock Options
Employee stock options (ESOs) are a type of compensation granted by employers to their employees and executives. The company gives employees the right to buy the company’s stock at a specified price for a finite period of time. ESOs pose many benefits to employees by allowing them to purchase company stocks whenever they want within a set period of time. For example, if the stock has gone up, they can purchase the shares at the original grant price and sell them for a profit or hold them for longer. These options allow you to reap some of the financial benefits of a successful business, help you start a savings plan, serve as a financially rewarding investment, and may offer some tax benefits.
401K Accounts
Employers can play a huge role in helping you reach your retirement goals and savings objectives. Most employers sponsor 401k plans to motivate employees to save for retirement. A 401k plan is a tax-advantaged, defined-contribution retirement account, which workers can make contributions to from their payroll. Many employers also match contributions, which can help you save for retirement faster. There are two types of 401k accounts, a traditional 401k and a Roth 401k. In a traditional 401k, employees reduce their income taxes for the year contributions are made, but their withdrawals are taxed. Whereas with a Roth 401k, employees make contributions with post-tax income but can make withdrawals tax-free.
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