![]() It's often not an apples-to-apples comparison when looking at two different opportunities, so it's important to understand what you are being offered and what you are foregoing. You want to make sure you understand exactly what the role is going to entail. If it's a new position, make sure the role is clearly defined. In the best-case scenario, the person formerly in that role was promoted or it's a new role because the company is growing.Ī worst-scenario is if there has been a lot of turnover in that particular position. In figuring out the happiness factor, it is important to understand why the position is open. A big mistake I often see is candidates not doing their research on the company and having blinders on through the recruiting process. You can often gauge the happiness factor by looking at the length of time others have been with a company. The next big thing you should consider is your career track with this position. Are there any other interesting benefits offered? (These benefits include paid parking, commuter benefits or even legal services.).Do they offer maternity/paternity leave or even just a leave of absence? Are there any daycare benefits?.How flexible is your work schedule? While you can't quantify the value of this, it's extremely important to most people and they'll value this over many other financial rewards.How many paid days off do you get? How many holidays? Are sick days considered separate?.Is there group life insurance? Is any paid for by the company?.Is there short- and long-term disability offered? Who pays for it? (Best-case scenario is that they pay the premiums and impute that benefit to you, or the company grosses up your paycheck and you pay for it, so benefits come to you tax-free.).Is health insurance offered, and how much does the company subsidize?.Is there a retirement plan like a 401(k) plan, and do they match and/or offer profit sharing?.However, once we went through the exercise of evaluating the long-term compensation, he realized the new opportunity wasn't such a great deal.īeing shortsighted when it comes to compensation and not understanding all of your compensation components are two of the biggest mistakes I see candidates make.Ĭompensation isn't just what you are going to make in cash and long-term incentives, but it is also the benefits provided to you. Recently, a friend called me to help evaluate another opportunity for him that was for more money. I have seen people choose a job for just a little more money when they should have been looking at their long-term earnings position in the new role. More from Invest in You: Three ways to make an uncertain income more certain Parents find it near impossible to make childcare plans in the pandemic This simple financial plan makes it easier to get through tough times What is your total compensation, including salary and bonus, and what is the pay structure? Are there long-term incentive awards? How are they paid out, and what has been the history of the company meeting growth targets to achieve payout objectives? What is your long-term compensation trajectory and career path? However, for those who do have some flexibility or are being sought after, here are some considerations before accepting your new job offer.įirst, understand how you are being compensated. ![]()
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