Valuing a salary - basic+benefits etc - what am I worth to a potential employer??

[Charlene1]

If you are given a fixed basic rate, but then can earn add on bonuses, and also can have things like a company car, mobile phone, laptop, "taking clients to lunch" expenses, free xmas party etc - how do you work out the value of each part of your "non salary" benefits when you are applying for other jobs and they ask you for the exact figure of your total income from that job??
Recently been interviewed by a few companies and agencies, and could only guess at what I would earn this year, best and worse case scenario, so they wrote down the actual amount I earned in "cash/wages" from last year that is stated on my P60 - which is way below what my job would actually be worth if I had all those benefits, like others in the company!!! E.g. I don't use/actually need a company mobile phone all the time, but I could have one if I wanted, as it's part of my "job package"?
So now agencies will only put me forward for jobs paying last year's wages, and companies think they can offer me the same, when I expect obviously more than I would get if I stayed a full year in this job if that makes sense - I am not going to take a pay cut again to move jobs!!!!
So what do I say I'm worth???

Some things you won't need to value if they offer like for like. There's no point in trying to value free lunches and christmas parties etc. You should however add on the percentage your employer pays into your pension if that won't be matched and also look at the difference in holiday entitlemtn, parking allowances, car allowance etc.

Do you have any idea?

I'm about to go on secondment and have recievd a breakdown of my cost from the company's financial accountant. I cost 350 per day in basic salary but 480 per day once other things are added on so it does make a big difference

To be perfectly honest if an employer is considering whether to make you an offer of employment, they are not going to increase the salary they offer you because at your current job you had a laptop, went out for lunch sometimes on expenses, could have had a mobile phone and went to the Christmas bash.

They might be happy to compare total compensation. If an agency or employer wants a total compensation figure rather than just basic salary, you could include basic salary, average bonus or last year's bonus and employer's pension contributions. If the new employer doesn't offer other benefits that you might have had, like private health care, more holiday, gym membership or whatever, you can try to use that to negotiate the salary up.

It's not a question of it being outrageous that companies 'think they can offer you' a certain salary. They can. They can offer you whatever they like, either the fixed salary for the job that's being advertised, or if the job you are going for has a negotiable salary, they will offer what they think you are worth. You can then attempt to negotiate that up using the things I've mentioned.

Bits and bobs like use of company office equipment and attendance at Christmas parties don't count towards your total package and to be quite honest, if you try and say they do when negotiating with a prospective employer, you might well be laughed at.

Company cars are tax neutral - ask if there is a cash alternative. I think DH gets in the region of £8000 gross in lieu of a company car.

Christmas party is £75 max.

Laptop is taxed now, I think.

Taking clients to lunch is a business expense so not part of salary.

Mobile phone costs are expenses so not part of salary.

The extras that show up on DH's paycheck are company car alternative, PMI, and matched share purchase.

I thought it was normal to value all those things, as I have actually already been asked to estimate it by both a company and an agency!!!
So if I went for a job that says salary negotiable, and explained I don't have a car as I don't drive - but if I did, I would get taxed each month on the cost at new of the car (say £11k), or however the tax works, then could I add that value on to my basic+bonuses or not? What would that value be then???
(We have no cash values instead of cars, no other pensions/extra holidays or benefits etc.)

If they have a value they will be on your paycheck.

You really cannot see business lunches as a perk (unless your job is a restaurant critic).

I can't believe either an agency or an employer would ask you to value your compensation and say to include business lunches and the Christmas party. They will have meant things like adding in pension contributions and taxable benefits like a car if you have one.

If your job comes with a car but you just haven't taken it up, you'd normally ask for a cash equivalent, but if that's not available, you could ask the payroll department at your current company for an average taxable annual amount that people have who do have cars. It certainly won't be the whole value of the car though. Ask them for an average figure. It's all done on emissions now not anything to do with the value of the car.

I googled company car tax and the first site that came up was this one. There is a company car tax calculator and I did a search on a basic Golf as an example, look at the 'vehicle benefit' table given, the 'benefit in kind' figure is what you would use to add to salary as an annual benefit. So it's usually roughly £3000 but that's not scientific. Ask payroll what car people usually get and what the benefit in kind value is.

Having said that, if a new company would offer a car with a job you'd be going for, they wouldn't take a benefit in kind for a car as added on to the salary, the car itself would be on offer as it is for you now.

Sorry the value of the car is also taken into account, not only carbon dioxide emissions, but it's definitely not the whole value, as in a tax year you are not benefiting from £11k, you are benefiting from use of the car, so they work out a figure based on that and based on the emissions of the model.

I have a feeling (this was probably from around 15 years ago, when company cars became significantly less attractive) that the benefit is something like 35% of the car's forecourt value.

The easiest company car policy is one where there is a realistic cash equivalent. Companies do not particularly want to run car fleets nowadays, so cash alternatives are a win-win.

Sounds about right squeaky. I used to manage a car fleet many moons ago, just before the emissions thing came in, and 35% ish rings a bell. Now emissions are taken into account it does vary hugely though, value of the car is part of it, but 2 cars of equivalent value can have very different benefit in kind figures if their emissions levels differ significantly.

Why don't you believe they asked that flowery? They did! And my boss has frequently gone on about how the company pays for nights out, the xmas party and lunches with clients etc when comparing us with other companies i.e. if we went elsewhere, we wouldn't be so "well done to" in those terms.
So what I need to say to employers is my basic + maximum available bonus (OTE figure), plus a car allowance of about £3k??

Seriously? They asked you to include the Christmas party and client lunches? Ok then, how strange.

I would still say taking clients to lunch isn't a perk, it's working and claiming back expenses, and Christmas party can only be up to £75, so is that seriously worth considering adding to your total comp anyway, it makes so little difference!

Yes include salary plus bonus, if I were your potential employer I'd want your average bonus rather than maximum available as there's nothing to say you'd get the maximum, but give whatever they ask for. I'd also just say you are entitled to a company car which you understand would be an average benefit in kind value of roughly £3k.

I still this is all a bit strange. If I were the employer offering you a job I'd negotiate based on two things, how much the job is worth within the salary structure at the company plus how much I as an employer wanted you particularly and felt your experience and skills were worth to me. I wouldn't up the offer because you went to the Christmas party!

Oh, and strange of the agency as well. Surely an agency should be putting you forward for jobs based on whether you have the skills and experience the employer is looking for, no based on whether you are earning that much now or not?!

Perhaps you need a new agency?

Bottom line is, all these little details are unimportant. There's nothing stopping you trying to negotiate your salary with a new employer if you think you want/need/deserve/are worth more.

If you ask for more and they really want you, they will consider upping their offer. If they're not all that bothered and have candidates lining up who are prepared to do the job for the original salary, then they won't up the offer. Simple as that.

I am with you, flowery.

Thanks flowery - the mad agency wants me to ring them tomorrow - didn't say why though, so it will be interesting to see if they still try and make the salary an issue.
I always thought anyway that an agency would farm you out for the highest price, as they would get more commmission - I think you made a good point about they should be looking at skills not salary - although my dp got turned down by an agency/company as he wanted the going rate for his job, as advertised, exactly the same duties etc - except it was £10k more than his current salary, and he did say the reason he wanted to leave was he was being massively underpaid and held back - I am convinced now it is just my town that has mad consultants and interviewers!!
I did have a bizarre interview a while back where the pay and hours were not mentioned even when I asked - they quickly changed the subject and wouldn't give me a straight answer- must have been seeing who they could get the cheapest then!!!!

Well exactly right. It's in the agency's interests to get you the highest salary possible so they should be raving about how wonderful you are and what fabulous experience you would be bringing to the job, not wasting time and effort faffing about tiny details like that.

But I suppose you get good and bad recruitment consultants same as any job really.

Strange not discussing pay and hours when mentioned at that interview. Probably hedging their bets not wanting to commit to anything until having seen everyone and worked out how cheap they could be I expect.

Hope the agency has some good news today anyway

Ha - I rang them flowery, and all she banged on a bout was how she couldn't put me in for for jobs equivalent to my basic and expected bonus for this year, she had to go on last years earnings. I said I would not consider anything lower than this years and she said I still have to go in and do these stupid tests, but she hasn't got anything for me, or is likely to - I told her I would ring when I can get time off. Except I am not bothering!! And then the same agency rang my office and asked if they could put forward someone for any secretarial/admin vacancies we have/may have soon. (I had told the consultant that I am the only one doing any type of admin related work there). So I told her we don't use agencies and are downsizing. Coincidence??
I am waiting to hear if I have an interview for a job at the local college anyway, so I am crossing all fingers!! (And hoping it is an early/late interview!!!!)

Quick update for anyone interested - went for job through another agency - agency asked how many kids I had. I told her because she was nice and I trusted her not to make a big deal out of it with potential employers - even though they shouldn't have asked!!! Naughty naughty!!
Then she got me an interview - she didn't tell them I'd got kids, so I was hopeful.
Interview was at 8.30 in the morning, so DP took kids to school.
Everything fine until:
Question 3, 4, and 5 from the interviewer (female office manager) was "have you got children - how many - how old"
Q6 was from the MD also interviewing(male):"who looks after them?" (what the hell did they think I was doing with them now, when I work more hours than the poxy job they had??)
Q7 was again from MD "what does your other half do"
Q8 and 9 from both - was about current working hours and why I work them (- er, because my boss wants someone in the office later on and it suits me better etc anyway!!! Not really up to me what hours my company actually operate!)
OMG!!! The bloody cheek of them to dare ask me all that.
Completely irrelevant to job as well, as job was very similar to current one what they were after.

I was speechless, but did sort of want the job, so answered anyway, like a fool. Once I went on to tell them I started at 9.30 now and liked it as I could take the kids to school, that was it, they couldn't wait to get me out of there. The hours stated on advert was 9-5. So I didn't outright demand flexihours, just told them I prefer it. But I would have asked them for flexiworking.

I told the agency all what they had come out with, and she just said "oh well, perhaps they will like you enough to offer me the job without it all being an issue".

Agency now tells me today that I didn't get the job as the company "thought I wouldn't like doing the telesales part of the job", but they did like me.

bloody strange that, seeing as my job involves telesales on a daily basis and I emphasised how much I enjoyed the customer contact and that was the main part of my job when I started - so not like I'm not used to it!!! And it's mostly cold calling!!!!

Anyone think I didn't get the job perhaps just because I have kids and they're narrow minded???? Or am I being paranoid?

I was going to turn it down anyway as they have complete disregard for what is legal obviously, by asking those questions, so no way would I work for them!!! My present job is bad enough for breaking vasrious laws - I don't want another employer like that. But they should not have asked me all that!!!

As a contrast, had another interview the day after, direct with the college and they never mentioned kids - purely asked about examples of work I had done to match their person spec. But the lucky person was getting offered the job by phone last Friday or today - and they didn't call me, so I am expecting a Dear John - but that is OK, as I was treated fairly and on merit etc for that.

Oh well - I am back to trawling the job centre site again .....