Tippin The Scales
What’s in A Job Besides Salary?
By
Nov 16, 2006, 10:26

As the job market shifts, concerns of the young generation are reaching beyond just a large salary. Overall quality of life has moved right up to the front seat and employers are trying to keep pace with those demands. Although a hot job with a big salary is still tempting, benefit packages that boost the standard of living are being used to lure good employees to competitive companies.

Let’s say that you’ve been interviewing with two companies and they both give you an offer. One provides a higher salary than the other. Which job do you choose? Duh, obviously the one with the higher salary, right? Not necessarily.

Many students investigate salaries for various careers and choose a path based on those findings. Web sites such as Salary.com and Payscale.com are good resources for discovering one’s expected income, but they rarely calculate the value of the extra benefits. If you are looking for a job, it is important to understand which incentives businesses are offering these days; firstly, that you don’t shortchange yourself, and secondly, this knowledge can be used as a negotiating tool.

Commonly viewed as the icing on the cake, benefit packages are so significant that they often become part of the actual cake itself. Before my dad retired, the total value of his benefit package was over 40% percent of his yearly salary. As high as that may sound, it’s not uncommon. From this perspective, you might want to take a closer look into all those extra benefits and perks, especially when trying to compare career options. Let’s take a look at some of the hottest benefits.

Flex-Time
My friend Jim recently took a job with a large engineering firm. He was granted a nice salary, but his reasons for taking the job stretched beyond the money. His wife just gave birth to their first child, and he wanted to be at home as much as possible while his baby was awake. One of the perks of his new job is flex-time, which lets him determine his own schedule within certain parameters. He can go into work early, leave a little late and take an extra long lunch break in the middle. He can also shift his time in between work weeks as long as he works 80 hours over a two-week period. For instance, Jim could take the family to the park one day, and he would have until the end of the next week to make up the difference. Flex-time is a valuable incentive that breaks down the conventional 8am-5pm schedule.

Insurance
The rising cost of health insurance can be hedged by a company’s contribution. Although nothing new, it certainly is important. My friend Willy negotiated free health insurance with his job. Looking at the details of an insurance plan can make your head spin, and trying to compare between two or more plans can make you want to see a shrink. Talk to human resources and let them help you sort through this information. Medical, dental and vision are the top three most important. Some progressive businesses are even offering insurance for your pet.

Paid Vacation
This may be your favorite part of your new job. Usually the longer you stay at a company, the more vacation time you earn. Competitive companies are using this incentive to draw in young workers. I know a girl who took a job out of college at an accounting firm in Atlanta. They gave her 5 weeks of paid vacation her first year.

Education Benefits
The more education you have, the more valuable you are to a business. Companies that realize this are usually willing to pick up the tab for school. This perk is especially useful if you are still in college or if you want to pursue a graduate degree. Along with tuition reimbursement, you might be offered the opportunity to miss work in order to attend classes—an extra reason to learn while you earn.

Corporate Structure
I recently found out how important corporate structure is to a job decision. The traditional company has a type of bureaucracy, with many levels of management. Just to speak with someone in upper management requires you to pass through many layers of middle managers (i.e. the corporate ladder). Flat organizations, on the contrary, have eliminated the boundary walls between management and allow the bottom guy to talk to (and even be friends with) the top guy. What does this mean for you? It makes you more visible to everyone. If you go above and beyond your job duties, you will be recognized for sure. There is no chance for a manager to take credit for your innovativeness and leave you hidden behind the corporate veil.

Retirement Plan
Usually referred to as a 401(k) plan, many young employees don’t pay too much attention to this benefit. Trust me, when your bones get brittle and you find yourself getting tired at 11:30am, you’ll be glad you chose a company with a good retirement plan. By a good plan, I mean: A) that it exists, and B) that the company will match a certain portion that you invest. For instance, they may offer to match half of your contributions up to 8% of your salary in an interest bearing account. Don’t rely on social security to get you through your golden years. Be proactive by choosing a company that has a strong retirement plan.

Other Benefits
The incentives mentioned so far are just a few of the many benefits that are being offered. Other perks include profit-sharing plans, company day care centers (not for you, but for your kids), health club memberships, and advanced corporate training programs. The motivation is not purely altruistic for businesses. Employers are finding that if they invest the extra money on the front end, workers are more likely to stay happy, healthy and loyal. With the rising costs of turnover, who can blame them? It’s a win-win situation


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