The difference between an accepted offer and the frustration that comes with a declined offer can often come down to the details. 

 

As salaries continue to rise and companies scramble to match internal equity and hire the best candidates a little flexibility can go a long way. Get creative to get ahead.

 

We have been having a good measure of success restructuring offers that are too low into a base + housing package.  This has the effect of lowering the base, and thus lowering the tax exposure of the candidate.  The candidate must provide an official invoice to the company, monthly, to account for this expense and it must be clear on the offer letter.

 

 

The effect on the employer is minimal in that it creates a little more accounting work but they will not complain, our friends in accounting, as this method will also lower the bonus paid by the client to the candidate as it is usually based on the monthly salary.

 

When this is structured well the savings in taxes will make up for the lowered gross and the candidate is happy, they live in a happy place where their concern is limited to the take home amount they receive.  The client will save on the gross and this will make for happy clients and will allow them to do more with the money they have to offer.

 

This is not rocket surgery but, until recently, has not been used at the manager level to entice candidates.  I think we will see more and more of this as the market continues to tighten and I will keep you updated if I see any changes.

 

I have created an excel sheet that can be used to calculate the net pay available to a candidate when different amounts of housing benefits are applied and I am happy to provide a copy to anyone who needs it.

 

Make sure that you follow the new labor law when it comes to the offer letter and keep your paper trail and this should be a great technique to bridge the gap between candidates and clients at offer time.