When it comes to a job, it’s easy to commit to salary because you need money to live. But you should also carefully weigh the benefits offered, as they have thousands of dollars’ worth of monetary value that can result in the acceptability of a salary that is below expectations. Here’s What To Look For When It Comes To Benefits.
Search for 401 (k) s with matching posts
Your employer may offer a 401 (k) pension plan. If you are lucky, he will offer to cover your contributions, usually 50% or sometimes even 100%, usually capped at approximately 4.3% from your salary (The Balance has a good overview of the options Here). This is as close as possible to free money as they are funds that combine with interest over time.
To use an example by FidelityLet’s say you get a full match for up to 4% of your salary. If you make $ 50,000 a year, that means an additional $ 2,000 in “free” money per year. Assuming the return on your 401 (k) remains constant (say 7%), your employer’s respective contributions add up and add another $ 320,250 to your savings by the time you retire.
Use this calculator to get a feel for how much a 401 (k) is worth and use that value when evaluating a job offer.
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Make sure your employer pays the health care costs
Unfortunately, if your employer does not take out adequate health insurance, an above-average salary can be wiped out by high healthcare costs. Plans and options can get complicated, but one thing to focus on is the percentage difference between what you pay and what your employer pays.
According to US News, employees cover on average 81% of the cost for coverage, with the average deductible for the most popular large employer plans being around $ 1,500 for in-network care. You should also research the benefits and how closely they match your medical needs.
Finally, check to see if the plan offers a Health Savings Account (HSA) or a Flexible Spending Account (FSA) as you can save up to a few thousand dollars in taxes on paying for health expenses.
Check if the vacation policy is negotiable
Compared to retirement accounts or health insurance, employers are usually much more willing to negotiate the number of vacation days in a year. Without sick days and paid holidays, the average employee has ten days off. Before you take a job, consider whether you will have more free time if the employer does not stand out from the salary.
Understand how the bonuses work
Bonuses are great, but come in two forms: discretionary and guaranteed. As the name suggests, discretionary bonuses depend on some type of performance (commission, odds) or are one-time (like a hiring bonus). If a bonus is performance based, make sure the parameters are clear and actually achievable. For example, a bonus based on company-wide performance may not mean that much to you as an individual, especially if the benchmarks are unrealistic and not directly related to your job.
Look for affordable insurance options
Often employers offer insurance at a discounted rate, which saves you the hassle of shopping yourself (e.g. disability and life insurance costs are often fully covered as part of your compensation package). Considering that the annual costs for the dentist are usually around $ 600Low end vision plans are there $ 240and dental is about 600 dollarsThese costs add up quickly. However, not all plans are created equal – you should take a close look at what is actually offered in each plan and make sure they meet your needs.
Also calculate the monetary value of other perks
Perks like home work, subsidized childcare, free meals, fitness passes, and grants for your phone bill or other equipment are worth thousands of dollars, and some of them may be negotiable too. As with the other perks outlined above, you want to know the total value of the perks so you have a full understanding of the rewards package being offered to you.
