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The compensation package: it’s not all about the money Print E-mail
Written by DegreedJobs.net Staff   
Wednesday, 18 June 2008


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The compensation package
The compensation package
When people think of compensation, they immediately think money. It is certainly the foremost item on a job seeker’s mind at the point of getting an offer.  But there can be a lot more than the base salary at play and there is certainly a lot more than that to be considered. Often times, employees are so focused on the salary amount that they fail to consider the many other variables that make for a fair compensation package, and ultimately, a happy working arrangement.

If you do get the salary you want but you failed to negotiate on other important elements, in the long run you won’t be happy. Consider the ideal overall package that works for you.
Here are some common compensation items that are often overlooked but should be noted before accepting or rejecting an offer.

Base salary:  This is the amount of money you will be paid for completing the work laid out in the job description.
Bonuses/performance incentives:  Some companies set goal levels which earn the employee monetary rewards at various intervals. Depending on the nature of the organization, the bonus structure might be based on sales numbers or some other measurable performance goal.
Retirement pension:  Your employer may have a program in place to secure a financially stable retirement package for all their employees.  Look at how much the employer is contributing to your future financial security and consider how that helps you now.
Vacations:  Think about what you could do with three weeks paid vacation per year, instead of two. Perhaps add a clause in your package that entitles you to a fourth week after three years of service. Extra paid vacation time is a very attractive compensation feature.
Health benefits: Study the company’s medical and dental benefits package closely.  Benefit packages can vary significantly, often favoring larger families. Be sure that the company offers a medical package that actually benefits you and doesn’t end up costing you a monthly deduction equivalent to the family of six.
Expenses: An employer may have an account set up to pay for such sundry expenses as cellular telephone or vehicle expense.
Perks:  Perks can come in many forms. This can be things like a complete annual family membership to a popular fitness and aquatic center.  It can mean regular access to company owned facilities or equipment. It can sometimes include things like significant airline rate reductions or other travel benefits.

The many elements of a complete compensation package can vary greatly and many of these elements can be negotiated by you, the employee. Explore all the variables, not just the salary amount. Because at the end of the year, it could be all the little extras that really make you happy with your compensation package. 

 
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