7 Financial Perks Beyond Salary To Consider When Accepting a Job Offer
Written by
Ashley Donohoe
Edited by
Nicholas Morine
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When you get a job offer, you might focus mainly on your potential base salary, which you should consider alongside your location’s cost of living and attendant taxes. However, several other financial perks can be part of your potential job’s total compensation. While some help you boost your pay at work, others offset everyday expenses or help you reach your financial goals.
Here are seven financial perks to look for in such situations.
1. Paid Time Off (PTO)
Your new job’s paid time off (PTO) allowance is important since it will cover you financially during times when you’re not working. Along with paid holidays, sick days and vacations, this can include time off for family reasons, jury duty and bereavement.
While some companies offer unlimited time off, others use systems where you accrue time off. Learn about the number of days you’ll get for different purposes, which accrual system the company uses and whether you can roll over unused hours.
2. Bonuses and Incentives
Your company might offer a sign-on bonus, ongoing commissions or periodic bonuses based on achieving specific goals. Be sure to consider the rates and bonus payout frequencies to know how these would help your compensation.
Incentives often include stock options that you could potentially exercise to own some company equity at a discounted price. While there’s an opportunity to profit, options come with risks and a vesting schedule, so you’ll want to learn how they work and understand the company’s performance.
3. Educational Assistance
If you’re interested in pursuing a degree or taking courses, you can save thousands per year if your potential employer will reimburse or directly pay for some or all of your tuition costs. Just make sure to learn about eligibility and qualifying courses and schools. Some employers also offer scholarship programs for you and your family.
Student loan assistance is another perk to consider if you’re in debt. While this isn’t the same as student loan forgiveness, your new employer might cover a certain amount of your student loan payments each year to offer you some tax-free relief.
4. Retirement Plans
Tax-advantaged retirement plans are an important financial perk since they help you plan for the future. A popular example is a traditional 401(k) plan that lets you make contributions from your paychecks and delay paying income taxes on that money until you make retirement withdrawals. The yearly contribution limit is generous — $22,500 for 2023 and $23,000 for 2024 — with an extra $7,500 allowed if you’re at least 50, per the IRS.
Find out if your potential employer offers any 401(k) contribution matching since this is free money. For example, the company might do a dollar-for-dollar match up to a percentage of your annual salary. If you take the job, make sure you understand the vesting system so you can avoid losing the match.
5. Health Insurance Plans and Savings Accounts
Expensive healthcare costs can harm you financially, so make sure your potential employer gives you solid health insurance and supplemental plans with affordable premiums. Consider any out-of-pocket costs, including deductibles and co-payments. Plus, check if the coverage includes your preferred providers to avoid inconveniences or costly bills.
The potential employer might also offer medical-related savings accounts that can help you cover out-of-pocket costs tax-free. Examples include health savings accounts and flexible spending accounts. You may even benefit from employer contributions.
6. Disability and Life Insurance Coverage
You can save money and have peace of mind when your employer provides free disability and life insurance coverage. The disability coverage would replace some income if a covered incident causes you to temporarily be unable to work. Usually based on your salary, the life insurance is often term coverage that pays out if you pass away while employed.
If your new job offers these perks, read the fine print to know how these coverages work and any limitations there are. You might find that you would still need your own life insurance policy to get the coverage amount or features you want.
7. Additional Employee Allowances
Companies can offer additional allowances that help cover lifestyle, travel, family, or work expenses. For example, they might reimburse you for your cell phone plan, gym membership, commute costs or lunches. You could get a stipend for office equipment and services, especially if you work from home. Plus, employers sometimes reimburse dependent care costs or moving expenses.
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