This is a personal finance blog, so I talk a lot about saving and investing (obviously). But what about earning power? How much you earn is a vital input to how you can accumulate wealth. So why don’t financial advisors help with that part of the equation? This is me helping you get what you’re worth. You’re welcome.
In an interesting turn of events from this time last year, the number of workers who are leaving their jobs has jumped to a two-decade high. This kind of movement signals to economists that workers feel pretty confident about the job market. Even more interesting is that a recent survey by Prudential Financial found that over a quarter of employees are just waiting for the pandemic danger to die down before they start looking for a new job. 42% of workers who have enjoyed WFH responded that they will consider jumping ship if their company doesn’t give them the option to keep that up. To sum it up: you might be seeing a lot of LinkedIn updates soon. Economists have dubbed this “The Great Resignation”.
One of the top reasons people said they were thinking about job-hunting was to get better pay. But the actual dollars deposited to your bank account are only one way you get paid. It’s important to consider all the other benefits an employer might offer you. Here are the other benefits you should take a good look at.
Healthcare I don’t think I need to stress how important this is. And I don’t think I need to remind anyone that healthcare is expensive. The average annual premium for a single person is almost $7,500; for families its over $21,000. Nationally, employer-sponsored healthcare plans pay for an average of 70% of those costs. Do the math and you see that a good healthcare benefit can save a single person around $5,000 a year and save a family about $14,000. Every plan is different, but these numbers may help you compare the value of working for a company offering healthcare versus one that isn’t.
Paid Time Off If two jobs offer the same salary, but one is including more time off, that means they are paying you more for the work that you will actually do. PTO is one of those sneaky places where you can get what you’re worth. Whether it’s vacation time, sick pay, or family medical leave, take a good look at what kind of time off you might need and don’t be afraid to negotiate for more of it. In the case of vacation time, make sure you use it, too!
Retirement Benefits Getting a handle on retirement savings is probably the top topic my clients come to me about. So an employer who gives you access to a retirement savings option can be a nice benefit. Don’t take it for granted! Only 67% of private employers (ie: not government) offer a retirement plan. Even better is when your employer offers a savings match. You absolutely should consider the match as part of your contribution. If you do not contribute at least enough money to get that full match, you are leaving money on the table. Not sure how to handle a retirement account? Hit me up.
Life Insurance This is a benefit I hope no one ever has to use, but it’s necessary if you have a family. If something were to happen to you, would your loved ones be okay? Oftentimes, employees don’t even need to pay-in to get basic life insurance. If your employer doesn’t offer it, see if you can negotiate a salary increase to cover premiums on a policy for yourself.
There are many other benefits a company can offer to entice people to work for them, but these are the ones I see as crucial and negotiable. Never be afraid to negotiate a job offer. What you accept as an initial offer will set the tone for the rest of your employment; start it out on the right foot. I know many people are afraid to counter a job offer for risk of losing it entirely, but think about it: if a potential job is so sensitive about your compensation that they pull back the offer, is that really a place you want to work at? I don’t think so. Don’t be afraid to get out there and get what you’re worth.
Need someone to bounce ideas off, or cheer you on? I got you.