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When your employee opts out of benefits

Your company has offered Teresa, a highly qualified candidate, a position as inside sales manager effective ASAP. Since the job market is competitive, your salary offer is high. Teresa is elated, but counteroffers with a request for more pay because she won’t be taking company health benefits. Her partner carries the insurance for their family.

Question: Should your company pay Teresa a higher salary?

Click below to see answer.

When your employee opts out of benefits: Answer

Answer: Probably not. Employers don’t have to offer a higher salary to employees who opt out of benefits, like health care coverage. In fact, going down that path could lead to more headaches in the long run.

Consider that an employee’s need for benefits could change at any time due to death, divorce, etc. Also, optional benefits are part of a company’s total compensation package that often includes benefits that employees don’t pay for, such as life insurance or disability pay. If Teresa presses the issue, let her know that discussing her salary is a conversation based on her role at the company, as well as market rate.