When you’re fielding a job offer, a lot of emphasis is put on the salary. That’s understandable given that you have monthly expenses that have to be covered. But there are many other rewarding benefits that you can negotiate.
ADP business payment solutions helps companies manage payroll and benefits administration every month. Even their service, which allows for electronic payments, is a benefit to employees that don’t want to have to wait on a check. Over the years, ADP’s team has seen a wide variety of compensation and benefits packages. Below are some of the top benefits that can add to an employee’s bank account and quality of life:
Paid Time Off
After salary, this is usually the first benefit that potential employees look for to determine how lucrative a new job will be. And it’s actually much more important to the business than many owners realize. Taking time off has been found to increase employee productivity, improve health and make people happier in general.
Some companies are now offering employees the opportunity to take extended sabbaticals. Employees are able to take vacations that are up to a month long, which are sometimes intertwined with work.
A number of jobs (particularly in management) include the potential for bonus payments. Sometimes bonuses are given individually based on performance or tenure while others are based on profit share for a specific period. These are also sometimes referred to as short-term incentives (STI).
Commission Incentive Plans
Another way to earn extra pay is through a commission incentive plan. These are often offered to people on a sales team since compensation is based on performance or particular achievements. The plan will outline the requirements for receiving commission, such as minimum performance metrics before commission kicks in and the percentage of the commission.
Maternity and paternity leave is a benefit that isn’t used often, but if you’ve just had a child it’s extremely valuable. U.S. companies don’t offer the longest maternity and paternity leave benefits, but they are improving.
Today, offering a flexible schedule or the potential for a flex schedule is seen as a benefit. Not only does it give employees more control over their time during the work week, it can also help you save money on commuting expenses and avoid using PTO for things like doctor appointments or staying home with a sick kid.
Employee Stock Options
Some startups offer employee stock options (ESOs) as a part of the benefits package, but even well-established companies will offer executives and managers stock options as an added incentive. Receiving shares of the company or having the option to purchase them at a discount price can be a valuable wealth-building strategy.
Oftentimes stock options are given to increase investment in the business and encourage employees to make the company more profitable. However, this is one of the more complex benefits, which means you may need to discuss your options with a financial advisor.
No one wants to work forever, and Social Security is far from a sure thing. That is why retirement benefits are so important. It’s the investment for your future so you can relax in your golden years. The federal government is a desirable employer largely because of the retirement benefits. Some city and state employers still offer pension plans, which is a specific payout that the employee will receive when they retire if they stay with the department.
Today, most private companies offer retirement benefits in the form of a 401K plan. Employees can choose to deposit part of their paycheck into a 401K investment fund, and as an added incentive, some companies will match your contributions. The advantage of a 401K plan over a pension is that the 401K can go with you if you leave the company.
Education and Training
Companies that provide free training or cover the cost of furthering your education are helping you gain skill sets that can significantly increase your salary potential. This benefit certainly helps the company because you are providing more value, but ultimately employees that take advantage of free education and training gain the most.
The Affordable Care Act requires that companies with 50 or more full-time employees must provide minimum health insurance coverage. This can significantly reduce the cost of health care for employees and their family members. Small businesses don’t have this requirement, however the SHOP Marketplace was developed to help small employers offer more affordable health insurance.
Some companies also offer life insurance coverage in addition to health care. If your job involves any sort of risk, it’s worth trying to negotiate life insurance into the benefits package so you know your family is financially protected.
Workers’ Compensation Insurance
One drawback of working on your own as a consultant or freelancer is you have no coverage in the event you get injured and can’t work. Employers carry workers’ compensation insurance to keep their staff protected if they are injured while working. Workers’ compensation will cover medical costs, rehabilitation and provide reimbursement for lost wages if disability occurs. There may also be death benefits paid out to family should the worst occur while working.
This perk doesn’t come around very often, but a work vehicle can save an employee hundreds of dollars in gas every month and keep miles off their personal vehicle.