/Interested in a Job? Consider Your Compensation

Interested in a Job? Consider Your Compensation

Different employers offer different perks—from 401(k) matches to beer on tap. Work-from-home flexibility is a common benefit that can lead to a less stressful professional life.

If you’re considering a new job, first understand how your compensation would work. It’s probably the most important thing to consider!

These days, wage and salary make up a smaller part of total compensation than it once did. In 2000, wage and salary made up nearly 73 percent of an average employee’s compensation. Today, the number is closer to 68 percent.

So what makes up the remaining 32 percent? It depends on the employer, many of whom are now offering more “lifestyle” perks. In 2017, more than 43 percent of employers offered so-called “wellness programs” to improve their employees’ fitness and health.

Employees are also seeing bonuses replacing raises. In 2017, one-time bonuses accounted for roughly 13 percent of the rise in total labor costs, while wage and salary accounted for only 2.9 percent. This forces you to consider your total earning—wage and salary plus bonus—instead of just base pay rate. Oftentimes, a generous bonus will do more to increase your take-home pay than a salary bump.

But it’s up to you to determine your preferences. Some Americans are most interested in work-from-home flexibility, while others value stock options and 401(k) matches more.

The top three benefits that employees generally desire (in order) are health insurance, paid time off, and a 401(k) retirement plan. Are you one of them?