There are few things more exciting than receiving a tempting job offer. Congratulations! But before you rush to accept that offer, take time to evaluate the entire compensation package.
What is a compensation package?
It includes more than just salary. It’s everything of value, monetary and non-monetary, that an employer provides in exchange for the work you do — like incentives, benefits and perks.
What can be included in a job offer varies greatly depending on the company and position, but most leading employers offer some combination of the following elements in a compensation package:
Salary, plus any bonuses or commissions
Paid holiday, vacation and sick days
Medical, dental and vision insurance
RRSP or another retirement savings plan
But that’s not all. As employers strive to attract top talent in a fiercely competitive hiring market, they’re adding new benefits and perks or updating their existing array of options. Most human resources managers (88%) responding to a recent Robert Half survey said their organization was adding new offerings.
Other trends in benefits and perks we’re seeing include:
Candidates prefer health-related benefits over leisure-related ones, like unlimited vacation time.
Firms are giving employees more opportunities to boost income, from increasing their RRSP match percentages to incorporating profit-sharing options.
Many remote workers expect their employers to cover the costs of home office equipment to help them be as productive at home as they would be in the office.
Job seekers are looking for enhanced schedule flexibility, ranging from hybrid and fully remote arrangements to four-day work weeks or the option to work the hours when they’re at their best (also known as windowed work).
Looking for tips on how to be a successful remote worker? See this post.
Why benefits and perks matter
Benefits and perks, loosely defined as items outside of base salary and bonuses, are important to consider for several reasons. First, they can help offset the costs of necessary services, such as medical insurance, that you might otherwise have to pay for yourself fully — or even be unable to afford. Employees frequently get a better rate by joining a company’s health insurance plan than they would if they purchased policies independently.
Second, they can help you maintain a healthy work-life balance — a top priority for employees who saw the line between their professional and private lives become increasingly blurred during the COVID-19 years due to full-time home working. Hybrid schedules appeal to people who find that commuting five days a week saps their productivity but don’t want to go back to feeling stuck at home 24/7. Other employees may enjoy the rhythms of office life but would like more autonomy over the hours they work.
Finally, some benefits and perks can help you prepare for the future. Whether it’s subsidized training that could lead to a promotion and higher salary or a RRSP plan that helps you prepare for eventual retirement, these benefits reward you for your time with the company by helping make your future better and more secure.
How to evaluate a compensation package and job offer
When you have an offer in hand, it’s time to consider the entire package. If the proposed salary is not what you expected, examine the benefits and perks. A top-notch package may make a lower salary more palatable. Or, if the perks aren’t what you were expecting, you may be able to negotiate certain items. Here are some questions to consider when evaluating a potential employer’s proposal:
