There is great value in using a benefits comparison tool to get a look at total job compensation. Don’t get me wrong, salary is a huge consideration when contemplating between two jobs, however, when evaluating two opportunities it is important to take into account the value of benefits beyond what comes home in the paycheck. Retirement matching, tuition reimbursement, vacation days, and multiple other non-salary factors should all be taken into account when evaluating two potential employers. This is often difficult to sort out due to the great variety of benefits that companies offer; it often seems like comparing apples to oranges.
Enter a benefits comparison tool. These slick tools take total compensation packages into consideration to assist in deciding between two jobs. This tool allows the user to input such variables as gross income, paid holidays, paid vacation and sick days, medical and dental insurance contributions, disability and life insurance offerings, 401k retirement contributions as well as extras such as gym memberships, free lunches, tuition reimbursement, or others. Once all these factors are inputted the tool then produces a graph depicting salary, monetary value of all other benefits, and total compensation. This can then be compared amongst multiple job options to determine which is the most financially beneficial. It’s quite possible that one opportunity with a higher salary would actually have lower overall compensation when all other factors are considered. And this is where benefits comparison tools find their value.
Beyond the dollars and cents, it’s also important to take into account non-financial aspects during a job comparison. Location can play a major role in the decision. Even adding 10 minutes on to a commute will equal over 80 hours a year! That’s a lot of time away from your family, and the value of your time must be considered (not to mention the cost of the commute itself). Location plays an even bigger role when comparing jobs in different cities where cost of living must be factored, and using a cost of living calculator is a great way to compare how far salaries will go in different locations. Also consider other quality of life metrics; what will be the work hour expectations, the travel demand, and the pressure of the position. An increased compensation package won’t do you any good if you’re too stressed out to enjoy it.
Taking a new job is an exciting and anxiety provoking adventure. Make sure you carefully weigh all the benefits so that the one you choose is right for you. Check out a benefits comparison tool. Thanks for reading.
Twitter: @FrugalFinance1 and @seeitmarket
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of her employer or any other person or entity.
