You got the job! But now you have an offer that you need to understand. There are a few misconceptions about understanding your salary and overall compensation. Here are some considerations to make when evaluating an offer and the compensation package.
First, your base pay is only one piece of the puzzle that you need to evaluate in an offer. You should also look at the benefits, work hours, and any other perks that might be in this offer. For example, if you get an offer for $50K but you also will gain an insurance benefit where your employer pays $12K a year for, then you are really gaining much more than $50K!
Second, if you are not paid overtime and will work a lot more than 40 hours a week it may make you rethink your high salary if your work-life balance is more important to you. In most salaried positions you can probably expect times where you must work more than 40 hours, but if that’s the norm or what you need to do to get the job done, then you should take that into consideration. A teacher could make about 50K and have the added perk of summers off. However, if they need to regularly work 50+ hours a week, those “summers off” just cover for all the extra hours worked during the school year.
Other perks or benefits may also shift your view of your base pay. For example, do you have the option to work from home or other flexible arrangements? Do you get free lunches and snacks regularly? Do you get a stipend for a gym membership? If so, those could seriously cut back on your spending in those areas which could translate to some increased net gain on your part. Those are all other “extras” you may want to consider when you are evaluating an offer. If you wouldn’t use those benefits, they may not really be perks for you and not weigh as heavily in your decision.
If you are moving, you should also consider the cost of living in that new location and moving costs. This list of possible benefits doesn’t consider every single aspect you could weigh in on, so do your own research on what is being offered when you take a position, including retirement. Although it may seem like it’s too far off to care about, it can make a difference in when you can retire if you don’t have the necessary funds! It’s also important to note that even though you may have received an offer, until you have signed a contract, they can rescind that offer. If you do choose to negotiate you should be aware that the employer may back out if you are asking for more than they are willing to pay.
If you need help evaluating an offer you can meet with a career coach or Education Credit Union Buff$mart.