Consider both the salary and the benefits package when you evaluate a job offer.
Benefits (like medical insurance, paid time off, and short-term disability) often make up about 30 percent of total compensation. Buying private medical insurance is almost always more expensive than a company plan.
Each company offers its own unique benefits package. Generally, the bigger an employer is, the more likely they are to offer benefits. This is because it is cheaper for an employer to offer a plan to a larger number of people. To evaluate a benefits package, begin with these questions:
- What benefit programs does the employer offer?
- Are the programs offered important to you?
- What do you need to do to be eligible?
- Which benefit costs does the employer pay for?
- Which benefit costs are you responsible for paying?
- Does the company offer family coverage? Are there other family-friendly provisions?
- Is there flexibility in working hours and in the use of paid time off?
Benefits Can Help You Negotiate a Job Offer
Understanding the benefits included in a job offer will help you figure out the dollar value of the job. Many employers are now using benefits as an incentive for recruitment and retention. Knowing the standard benefits offered in your field can give you an edge during negotiations.
Think You Don't Need Them?
When you're young and healthy, you may not think you need health care or other benefits. But having no health insurance is a big risk. A small accident or illness can result in huge medical bills.