More than a Salary: How to Select and Make the Most of Your Benefits

More than a Salary: How to Select and Make the Most of Your Benefits
By Jennifer Polanz

Coming out of college and landing a first job is difficult. What’s even more difficult sometimes is to hear your first salary offer and wonder if you should have taken that advice about checking out medical school.
But a job is by no means defined by the paycheck, a fact that is not often realized right away. There are other aspects of the job to consider that could increase the attractiveness of an initially shaky offer. In fact, according to a new study by the U.S. Chamber of Commerce, employers continue to spend more on benefits, with more than 44 percent of payroll expenses in 2005 going to employee benefits. That’s a 4 percent rise from the previous year, according to the study.

Health And Retirement
Two of the most common aspects of a benefits package are health insurance and retirement investments, either in the form of a pension or 401(k).
There is one thing a news reporter learns relatively quickly – tragedy can strike anyone, anywhere. As a general assignment reporter, you spend quite a bit of your day talking to people about mysterious illnesses, tragic car accidents and other bizarre accidents. It’s enough to make you want to have the top-of-the-line health insurance – just in case.
And while retirement may not be a major issue at the moment, financial planners have said the sooner contributions begin to a retirement plan, the better. It’s much easier to save a little at a time for a much longer period of time versus tuck away significant amounts of money quickly.
However, a BusinessWeek story written by Liz Ryan, she makes an interesting point by encouraging new recruits to look at what they’ll need to survive now versus down the road. Someone just out of college, for example, might not be interested in a company offering longer-term benefits like a profit-sharing plan that takes years in which to be vested, or a long-term life insurance plan. Instead, for the first job, he or she might want to look for a company that offers benefits that pay off in the short term. (http://www.businessweek.com/careers/content/aug2005/ca20050818_6715_ca030.htm?chan=search )

Additional Compensation
Some companies offer multiple types of extra payment, in the form of bonuses, profit-sharing, commissions, stock options, etc., depending on the type of work you choose. Know these up front, and to how much they will equate when it’s all said and done. Sometimes these can be negotiated before the final offer is made. Many times companies will figure these extras into your estimated annual salary in your final offer.

Flexibility
So you’ve got the health insurance, the retirement plan and additional compensation in the package. What else should you look for? Depending on your needs, flexibility in schedule can be an issue. Is the employer requiring 8 a.m. to 5 p.m. hours with a half hour or hour lunch, no exceptions? Or are they willing to bend with “flex” hours – 7 a.m. to 4 p.m., or 9 a.m. to 6 p.m., for example.
In the news world, hours revolve around when news happens. Are you willing to come in at 8 a.m., leave at noon and return at 6 p.m. for a night event? It’s important to know upfront, too, whether the company will compensate you for overtime or allow you to take comp time to make up for extra hours.
Another example is Best Buy, which recently implemented a policy called ROWE, or results-only work environment. It sets individual goals for employees, and when they meet those goals on any given day, they are free to leave. They can work whenever they need to work to meet those goals, which allow flexibility for other personal activities. (http://www.businessweek.com/magazine/content/06_50/b4013001.htm)
Also, some companies require an employee to be “on call” at all times. This can mean carrying a pager, cell phone or Blackberry-type device around for days to weeks at a time. Finding this out upfront, as well as what the compensation is for carrying said device, will save a lot of frustration.
One other thing to consider is telecommuting. Some companies now allow employees to work some days from home, while others see employees in the office as a community-building initiative. Know beforehand what you have in mind and make sure it fits the philosophy of the company.

Vacation Days
That brings up another important benefit – paid time off. The major difference among companies is how much time off they offer, in what form they offer it and when you can begin to take it.
For example, some companies offer two weeks, or 10 days vacation. Others start off with one week and go up to two after the first year. Yet others give you a certain amount, but only after you’ve worked there for three months. Some companies don’t give up those first precious vacation days until after a year.
Also, some companies have switched over to PTO days, which are Paid Time Off and tend to be more flexible than straight vacation days. That can also mean they offer additional PTO days, but no sick days. Other companies offer a mixture of PTO, vacation and sick days.
One final note to consider on this front is if vacation days, PTO and/or sick days can be carried over from one year to the next. It can be a terrible feeling to realize your company won’t let you carry over the eight PTO days you so carefully hoarded during the year while planning for that vacation in the next fiscal year.
Once again, for vacation, PTO and sick days, it’s important to know upfront what the mix is, how you can take them and when you can first start taking them before you agree to the job.

Parking
Don’t laugh. Some employers in big cities don’t compensate for parking or transportation fees, which can become quite costly and override any additional money or benefits. Check to see if parking is included in the benefits package, or if there are other options. You may want to make the sacrifice to work in a certain city, but it’s wise to know additional costs you’ll be incurring upfront. Also along these lines are relocation benefits. Some companies will pay your cost of moving to a new city, as well as the cost of staying in a hotel until you can find lodging, etc. These types of benefits generally are negotiated upfront, so don’t expect them upon acceptance of the offer.

Paid Holidays
Another one not to be snickered at, especially if you decide to work in the wonderful world of news. Find out beforehand what’s expected of you on holidays. Many smaller news outlets pick holiday coverage based on seniority – and they don’t give the assignments to the senior reporters. They give them to the one that walked in the door last. So ask your potential employer the rules for holiday time – including if you get comp time, double time or any such reward for reporting on, say, Thanksgiving Day.

Iffy Benefits
There are certain benefits offered by companies that could be considered superfluous or fluffy, depending on what you’re looking for. In researching this story, I found one company that offered monthly peanut butter and jelly sandwich days, in which 25 to 30 varieties of peanut butter and jelly were brought in, along with 12 different types of bread. (http://washington.bizjournals.com/washington/stories/2006/05/08/smallb1.html )
Now, some people may love that as a benefit, but I wouldn’t make a decision on a job offer based on peanut butter and jelly day.
However, other benefits may or may not float your boat. Some include tuition reimbursement; gym or health facility memberships or access; in-office child care; frequent field trips and outings; massages; pets in the office; free lunches or dinners; dry-cleaning services; birthdays off and nap times, among others.

Jennifer Polanz is a freelance writer in Mentor, Ohio. She is a 1998 graduate of Scripps' Graduate Program.