CAREERBUDGETING

What Do These Benefits Mean?

Accepting a job offer can be one of the biggest decisions you will make. The first thing many people want to know when they receive a job offer is how much money they’re going to make. The reality is there are many other benefits in a job offer beyond the salary that should be weighed before saying yes. Let’s break down the potential benefits that could impact your decision.

The pay

For some, the number on that paycheck may be the most important factor when deciding to accept a job offer. Pay does not look the same from company to company, and you’ll want to consider how your pay will change with your future. You may want to consider if the income is hourly or salary. Hourly positions may come with added pay from overtime or shift premiums (being paid more hourly when working majority of your shift outside of normal operating hours). Another thing to think about is how your pay will increase. Does the company have a pay schedule with yearly increases planned? How does the organization handle promotions or bonuses? Is there any chance to receive commission? These are all questions to consider about what your future pay may look like.

Health insurance

According to a Harvard Business Review study, 88% of respondents gave better health, dental, and vision insurance heavier consideration when accepting a position with an organization. These benefits can add extra expenses to your budget when they aren’t fully paid for by the employer. Here are some things to consider:

• Medical coverage.
• Co-pay amounts.
• Cost of medical premiums.
• Different deductible options.
• Health Savings Account (HSA) or Flexible Spending Account (FSA) options.
• Mental health coverage.
• If benefits start on the first day or within a certain timeframe.

Retirement

For people new to the job market, retirement options can be one of the benefits in a job offer that can be overlooked. Based on the organization’s industry, you may be offered different types of retirement, such as a pension or a 401(k).

With a pension, understanding how long you will need to remain with the company to be able to afford retirement is key. A 401(k) retirement plan works differently than a pension and may come with a company match (free money the company contributes to your retirement based on how much you contribute). Another part of a 401(k) is understanding is how long it takes to become vested with the company — meaning that if you were to leave, you would keep the full amount of money in your retirement account, including the funds that have been matched. Leaving a company before the vested time period can result in losing the matching funds.

Time off

Being able to take time off from work for any reason is important. This is another benefit that is going to vary from company to company. At some organizations, you may be given a bank with a certain amount of paid time off (PTO) every year, and at other organizations you may earn a certain amount of PTO during each pay period. There may also be a difference between PTO and sick time, which again can vary. You may also want to ask about other forms of time off before accepting a job, such as:

• Parental leave.
• Personal leave.
• Medical leave.
• Family medical leave.
• Paid holidays.

Other benefits

The list of benefits can go on and on, especially in our current job market. Here are some more benefits that may be important or helpful when making the decision to accept that new job:

• Tuition reimbursement, student loan reimbursement, professional development.
• Work location (remote, hybrid).
• On-site child care.
• On-site gym, gym membership discount, or reimbursement.
• Employee discounts.
• Pet insurance.
• Share/stock in the company.

Sources:

https://hbr.org/2017/02/the-most-desirable-employee-benefits