Calculate and Compare Total Salaries before You Choose Next Job

Job Ad

Looking for a job?  Not sure if it’s a good move or not?

Lots of people make common mistake when they decide on a new job: Looking at annual salary amount only.

Lots of people do not even have options to choose due to terrible economy these days.  However, if you’re in a job market to find a better job, you should not make a decision only because new employer offers higher salary amount.  While there’re lots of variables, followings are major factors that you must consider before you make a decision:

Health Benefits

If you have a family, it is important to keep your loved ones covered and protected by a good health insurance plan.  Large-sized employers and government agencies generally offer better insurance plans than small or mid-sized employers.  Make sure to compare monthly premium, co-pay per visit, and deductibles.  These entities don’t make whole lot of differences when you have regular office visits.  However, it could have totally different outcome when you have a special testing or any type of minor/major surgeries.  Your total bill could be $50 or several thousands.  Also, your premium could be higher with a new employer.  Find out what your portion and employer’s portion are.  Life is a full of unexpected events so consider this factor seriously.

Retirement Investment Match

Lots of employers especially these days do not provide any match.  People tend not to see this as benefits because they think retirement is far away from them and they don’t see it as real money.  If you’re making $60,000 with 4% match currently, you should consider your salary as $62,400 because $2,400 is going into your account and this could grow over time.  This is like having a savings account with high interest rate.

Other Retirement Matches

Some employers provide additional match if you contribute certain percentage on Deferred Compensation plan (e.g. 457).

Number of Average Working Hours

If a new employer offers you higher salary but you have to work 5-10 hours more per week, it’s not necessarily as high a salary as it looks.  Also, you’ll have less time to spend with family or friends.

Leave Accrual Rates

Vacation or sick leaves are paid off-days that are related to salary factor as well.  Another factor you cannot ignore is rolling over leaves to next calendar years.  Depending upon their Personnel Regulations, some employers allow you to roll over leaves.  Moreover, employers pay out vacation balances when you’re no longer with them.

Above are major factors you must consider when you compare the jobs.  Other factors could be overtime pay, parking fees, commute distance, or available transit systems.  Lastly, make sure you don’t end up landing on next higher income tax bracket and pay more out of your pocket than before.

Job market is tough.  Make a smart move by doing your homework.