Comparing Job Offers: Part One
For those who have be actively searching for a new job for several months, like me, you may not believe this could ever be a problem. For those entering the job market with high hopes and expectations, you might be expecting companies to be falling all over themselves to get you. Either way, it is important to carefully analyze each job offer your receive (and/or negotiate).
Part One of The Weight of Money’s Comparing Job Offers series focuses on benefits.
While salary is one of the primary criteria for judging employment positions, it should not be the only criteria. There are many other factors about an offer that should be considered, including responsibilities, advancement, commute, office environments, and benefits.
In my search to compare two upcoming job offers, I found several articles detailing ways to compare the overall job qualities. However, I wanted to focuses on benefits packages and look a true values, in dollar amounts, of each option.
In this series, I will compare two different job offer packages. While this is a fictitious example, it is closely related to personal choices that I will be making in the next week. Therefore, I will also be evaluating these offers based on my preferences. Each job seeker should carefully use their own criteria to judge offers.
Job Offer One: Office Manager position at a for-profit, blue-collar industry company. This is a small, home-based business that has been in business for many years. This is a new position for the company and was established to respond to the companies continued growth in business. There are only two or three office personnel and the remaining staff work out of the office at customer sites. There is little to no room for growth or personal advancement in this position.
Job Offer Two: Program Assistant position at a non-profit, education field organization. This is an organization that has been in operation for almost 100 years and is nationally recognized in the field of education. This is a new position paid for by a new grant funded initiative. There are almost 50 staff members working on a variety of projects, programs, and initiatives. There is extensive room for growth and personal advancement in this position.
|
Salary + Benefits |
Job Offer One |
Job Offer Two |
Comparison |
| Salary | $38,000/ year | $33,000/year | $5,000 more at Job One |
| Medical Insurance
Family Premium $500/month ($200 individual premium) |
Employer pays 30%
Employer: $1,800/year |
Employer pays 100% employee premium and 50% dependent premium
Employer; $4,200/year |
Job One: +$1,800/year
Job Two: +$4,200/year |
| Dental Insurance
Family Premium $100/month ($50 is individual premium) |
Employer Pays 15%
Employer: $180/year |
Employer pays 100% individual premiums.
Employer: $600/year, |
Job One: +$180/year Job Two: +$600/year |
| Retirement
Employer contribution not contingent on employee contribution. |
No employer contribution.
$0/year |
5% contribution first year, 10% following years.
$1,650 first year, $3,300 following years |
Job One: +$0/year
Job Two: +$1,650/year one, $3,300/year two+ |
| Total Salary + Benefits |
Job Offer One: $39,980/year | Job Offer Two: $39,450/year one, $41,400/year after. | Year One: $530 more at Job One.
Year Two+: $1,420 more at Job Two |
| Vacation Days | First year: 5/year Second+ year: 10/year |
First year: 12/year Second year: 18/year Third+ year: 24/year |
7 days more, 8 to 14 days more at Job Two |
| Holidays | 6/year | 11/year | 5 days more at Job Two |
| Sick Days | 5/year | 12/year | 7 days more at Job Two |
| Personal Days | 0 | 1 | 1 day more at Job Two |
| Time Off Adjustment
This adjustment considers salary+benefits divided by the actual number of weeks worked. |
Work 48.8 weeks the first year at $819.26/week.
Work 47.8 weeks remaining years at $836.40/week. |
Work 44.8 weeks the first year at $880.58/week.
Work 43.6 weeks the second year at $949.54/week. Work 42.4 weeks the third and remaining years at $976.42/week. |
Year One:$61.32/week worked more at Job Two.
Year Two:$113.14/week worked more at Job Two. Year Three+:$140.02/week worked at Job Two. |
Generalizations made to simplify calculations: Medical and insurance premium were kept consistent for both organizations. Annual salary increases were excluded.
Time Off Adjustment: This adjustment will depend on your personal preferences. For me, time off is extremely important and therefore highly relevant in calculating the amount paid per week of actual work. One reason for this preference is that my personal time commitments necessitate at least 11 vacation days a year. Also, some people may choose to exclude sick leave from this calculation. While I feel that it is not advisable to use all available sick leave, I do not want to be penalized with unpaid time off if I, or my child, should get sick for an extended period of time or ill several times in one year.
Conclusions: Developing this chart really helped compare the different benefits packages with actual numbers. It confirmed my understanding that while non-profits often pay less than their for-profit counter parts, their benefits packages can often make up the difference in pay.
Next: In Comparing Job Offers: Part Two, I will evaluate the overall job characteristics of each position. While salary and the actual value of benefits helps paint the financial picture for each job offer, there are other important considerations that should be made before making a final decision.
Resources:
The only source I’ve found discussing calculating vacation time was The Value of a Vacation Week posted at Find a New Job.