Friday, October 23, 2009

Evaluating Compensation: Higher Salary or Lower Salary with Benefits?

Given the state of the job market, many job seekers are willing to compromise on salary and benefits; however given the choice, should you accept a job offer from a company that has higher pay or one with lower pay that comes with benefits?

According to (a Forbes Digital Company), job seekers should look for companies that offer various benefit packages rather than those that offer a slightly higher pay but no benefits.

The Bureau of Labor Statistics reported that 70% of the workers surveyed in July 2009, were granted retirement and healthcare benefits from their employers. As part of healthcare benefits, those surveyed employers paid 82% of the cost of premiums for single-person coverage and 71%for family coverage. With healthcare costs skyrocketing, can you afford a job that doesn't offer healthcare benefits?

Investopedia also advises that your employment offer include a retirement package, unless the salary being offered is high enough to allow you to contribute regularly to a retirement fund.

Be on the lookout too, for companies that offer cafeteria plans that allow employees to choose a benefits package that best suits their life situation. For example, a single worker has different benefits needs than a married worker with young children.

Evaluating all the compensation components of any job offer will help you make a decision on whether a job meets your financial needs and/or goals. For other tips regarding salary and benefits, click here.

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