If you could land your dream job right now, what would it look like for you?
Think about it for a minute. No, really. Do it.
What types of things went through your mind?
Let me guess: your role and your salary.
While both role and salary are important, there are other things that contribute to your financial (and overall) well-being. In fact, there are plenty of instances where good benefits actually outweigh a higher salary. Let’s take a look.
Retirement Matching
This is a big benefit and an opportunity for lots of EXTRA money. If one company offers a higher salary, and another company offers a slightly lower salary paired with amazing retirement matching, it makes sense to do some math. If you plan on contributing to your retirement , know what percentage of your contributions will be matched by your employer!
For example, a company may agree to match 50% of your salary up to 6%. That means that if you contribute 6%, they will contribute 3%.
If the other company matches 200% of your salary up to 4%, then they’re contributing 8% while you contribute 4%.
Whether this is a better deal depends on how much you intend to contribute to retirement and the salary numbers. Maybe they’re different enough where you could invest the difference and still make more that way. Maybe they’re similar enough where the better matching makes sense. Very situational here.
Coming from experience, I can tell you… BOMB employer matching is a great thing. The amount of money I’ve received from my employer into my retirement account is something I don’t take for granted. The amount in your account can be significantly different if you understand how much potential money is on the table.
Note: If you are going to take advantage of matching, know your retirement plan’s vesting schedule. This way, you can figure out when you actually own the employer contributions. This is especially important if you do not plan on being at the company for the long haul.
Healthcare Costs
Understanding your premium, deductibles, and co-pays etc. may get a little overwhelming. However, having an employer cover a large portion of these costs could end up saving you a lot of money if it’s an option! Think robust benefits like healthcare, vision, and dental benefits.
Don’t need your employer to provide healthcare (maybe you’re covered by your parents or spouse/partner)? Find out if that means extra money in your paycheck as a result of it. Just because you don’t need your employer to provide coverage doesn’t mean you shouldn’t be aware of the options and the financial benefit they may provide!
Work/Life Balance
Unless you truly want your career to be your life, an ideal job involvesset expectations of hours worked to ensure a balance between work and your other priorities. If your salary is super high, but you work a ton of extra hours, your rate may actually be less than a lower salary job with more “regular” hours.
It’s really about finding the best fit for you so that you have a rate and work/life balance that brings you joy. Free time is worth more than most realize!
PTO
While you might know how much your salary will be at prospective jobs, be sure to also know how much paid time off they’re offering you! Like I said before, benefits are important!
Besides just vacation days, are there sick days too? What about paid holidays? Is there room to “earn” more PTO after being with the company for a set amount of time?
If one company doesn’t offer any (or very little) PTO while another offers multiple weeks, calculate your rate and weigh the true difference in salary based on your hours worked. If you aren’t satisfied with the PTO but love everything else about the job, try negotiating this before accepting an offer!
Tuition Reimbursement
While a job with a higher salary might look shiny initially, one with a slightly lower salary that offers tuition reimbursement might actually be the better option. Obviously, this depends on whether or not you’re seeking higher education; if so, definitely consider this when looking for a job! Also, understand the limitations of the reimbursement (and tax implications), if any; also understand if you’d be committed to the company for a certain number of years by taking advantage of this benefit. For example, some companies require you to stay with them for a few years after they fund your schooling.
I was VERY fortunate to have a master’s degree fully funded by my workplace with no commitment necessary (though I have no intention of leaving my job).
Learning Opportunities/Professional Development
Not as concerned about a degree but still want career growth? By finding a company willing to invest in you, it enables you to grow and develop professionally in ways you might not do otherwise.
This could include conferences, professional association memberships, courses, learning/course memberships, mentorship opportunities, and more.
While you might not immediately think of these as being high-impact financially or otherwise, think about being able to travel internationally to a conference and having your entire trip covered. It adds up! Note: While this is generally taxable income, the taxes paid are likely to be MUCH less than the cost of the trip. I got to spend 10 days in London last year and it was amazing!
Another point here is tailoring your learning to specific areas you wish to grow. I personally have a membership to Coursera, which my company covers. Coursera offers a free option, but in order to get graded and earn the official certificate (HUGE resume booster), there is a subscription fee.
Schedule
I work with some people that are morning people and others that are late-risers. Guess what? My workplace is cool with it. While we are all key contributors, we communicate our schedules, keep our calendars up-to-date, and generally are able to take time off whenever we want (assuming it doesn’t conflict with something time-critical or date-specific).
Some companies also allow employees to drop to varying levels of part-time. If you decided to drop to part time to either focus on something else (school, family, etc.), would you be able to? This is an option for some, and could end up saving money and stress, whether it be on childcare, caring for a family member, or something else. While it generally involves reduced pay based on the level of part-time, it may make sense depending on your specific situation. Having this flexibility is definitely nice to have!
In fact, I’ve found that a consistent yet flexible schedule is AMAZING. Understanding expectations around your schedule, time off, overtime, etc. is crucial to reduce overwhelm and enjoy life outside of work.
Discounted Expenses
Do not overlook this category! Be sure to ask about any and all discounts offered as benefits through your employer. Some companies have a gym onsite where employees can go for free, or at a minimal rate. Others will actually pay for employee gym memberships (likely taxable though).
I get a discount on my personal cell phone bill though my employer. I honestly feel like this type of benefit is not discussed enough. Reason 34598736 why I love where I work. See if this is an option, especially if you work at a larger company.
Some workplaces will pair with local stores and restaurants so that employees can get discounts on products or food. This is a win-win situation since the discount saves the employees money and brings more people to the local joint. I LOVE supporting local businesses!
Here’s the thing… Just like personal finance is personal, so is choosing a place to work!
While only you can truly determine what your ideal rate is, how much you work, and how you choose to grow in your career, it is imperative that you weigh your options in terms of these benefits as opposed to primarily focusing on salary. You’d be surprised to find that good benefits can really add up, closing the salary gap right before your eyes!