What Is Compensation and How to Evaluate the Compensation Package and Job Offer?
“What we seek is some kind of compensation for what we put up with.”
~ Haruki Murakami
One of the main reasons that people come into the workforce is compensation if we keep aside the professional opportunities and career growth. In every company, the compensation packages vary on the basis of the employer, the company, and the role itself. However, when accepting employment, it’s important that you understand the job as well as the compensation package that is being offered.
It will help you in understanding that whether it is a position that you were looking for or you must look for another employment opportunity. In this article, we are going to give you an insight that what is compensation package and in how you can evaluate the compensation package and job offer.
What is a Compensation Package?
The perks that are provided by the company in return for your services is known as the compensation package. It doesn’t just comprise of your salary but all the benefits and perks the employee gets along with the job. These benefits are based on the role you play in the company; for instance, bonuses, paid holidays, pension, etc.
How to Evaluate a Compensation Package?
Take a look at the whole package that is provided along with the proposed salary. In case the salary is not what you expected, examine the benefits and perks. This tactic would give you a chance to negotiate certain items. The questions that you must keep in mind while evaluating you compensation package are as follows:
What is the Most Important Thing for you?
In every person, the goals, values, and lifestyle vary, so in this case, there is no perfect compensation package. As for some people, health insurance and a good salary plan must be the must-haves, while for some other person on-site gym or tuition reimbursement could be the reason to take the job. So the main point is that you find out that what the thing you are looking for is. If your compensation package comprises of all the elements you need then you are good to go. However, it not then you must talk to the employer about what is missing and becoming a deal-breaker for you.
In need of More Information?
If you have taken help in writing your CV from the CV writing service UK, you must have seen that how detailed their form is, on the basis of which they generate the CV. In terms of any confusion, the writers even call the customer. Similarly, if you need any information and finding the compensation package vague. You can seek help from the employer so that you can easily make a decision. For example, your question is what would happen to your pension plan if you leave the company? Or Are you paid the entire bonus or the percentage can differ?
What is your Benchmark?
To effectively evaluate your compensation package, it’s important that you have prior knowledge and benchmark to compare it to it. There are many websites available that allow people to compare the benefits data with different companies and fields. The characteristics that make these worth taking help from is that the data is attained from surveys from different industries. So next time you opt for a job make sure to consider this data when evaluating a compensation package.
What are the Eligibility Requirements?
There are certain perks that are mentioned in the compensation package, yet you are not eligible to use them right away. Companies determined policies that employees who have reached a certain tenure can avail of those benefits. For example, you will not be given medical coverage until you have served the company for at least 90 days. Moreover, there is a need for the manager’s approval to certain perks like tuition reimbursement. So make sure that you know your eligibility criteria, so that you don’t have to be disappointed later.
What do you need?
Evaluate and see that what is a “must-have” rather than a “would like to have”? The income and the number of benefits you need to live. Like we understand that salary might not be the only key factor to opt for a job. Perhaps, if you place more importance on the health insurance and the pension plan. Yet the income is not what you need in order to support yourself and your family. This might be more difficult for you and you might end up leaving the job.
The bottom line is that there are many people who keep on switching their jobs and are not satisfied with it. Due to this reason, they are not able to grow and create a firm base. Therefore, it is important that you fully evaluate your compensation package and a job offer that is proposed to you. We hope that all the key points that are necessary to evaluate a compensation package are comprehensible. Moreover, the next time you go for an interview and you are offered a compensation package and job, you choose what is best for you.