Article
While a large salary may seem like the most important thing for you to consider, the additional benefits offered can be equally important. A job offer is typically referred to as a “package,” or the salary plus the benefits. Many applicants focus on one part or the other, such as the salary, and fail to view the offer comprehensively. While no situation can be perfect, it is always best to consider the entire “package.”
Whether you’re living at home or moving across the country, cost of living is an important consideration. When examining the salary, consider expenses particular to the job location. A general rule is that cities cost more than suburbs. However, the reason certain places are more expensive than others may be due to varying factors such as tax rates, housing costs, gas prices, etc.
A cost of living calculator compares salaries across different regions and provides a breakdown of expense comparison. For example, an individual earning $50,000 in Columbia, SC, would need an equivalent salary of approximately $79,000 to live in Washington, D.C., to expect the same lifestyle. The cost of living calculator provided by bankrate.com below shows that your rent is twice as expensive in D.C. as Columbia, while your electric bill would be less.
The next part of the package is the benefits. Many people view benefits as secondary to the salary, but a better benefits package can replace the need for a significant chunk of salary.
When looking at the list of benefits offered, ask yourself three questions:
What types of benefits are offered?
• Are health insurance, life insurance, retirement plans, etc. included?
• If not, how could you provide these?
Who pays for the benefits?
• Will the employer pay the premium, or does the employee bear the cost?
• Does the employer contribute to the retirement plan?
When are you eligible to receive these benefits?
• Are you covered under the plan the first day, or after a period of months? *
• Do you receive an employer match immediately or after a year?
note * especially important consideration for any disability benefits
Evaluating a job offer involves more than judging the salary at face value. Keep in mind that any benefits not covered by an employer will have to be covered out of pocket! After taking into account the number of expenses you could be facing due to an absence of certain benefits and cost of living, that “large” salary could look smaller. The benefits provided add to the salary, as well as help prepare for more pressing future expenses.
For more information about cost of living calculators, the following websites may be helpful:
http://www.bankrate.com/calculators/savings/moving-cost-of-living
-calculator.aspx
http://www.payscale.com/cost-of-living-calculator
http://www.bestplaces.net/cost-of-living/
