When comparing job offers at the senior and executive levels, job-seekers really need to compare all aspects — including salary, benefits and perks, and cost of living — of each job offer.
Congratulations! Let’s say that after much preparation and hard work that you have received three job offers. Now you have to decide which is the best offer. Is the best offer always the one paying the highest salary? Well, when you also look at each company’s benefits package, you might find a very different story, as illustrated in the table below. Why are benefits important? At the executive and top management level, benefits can be equal (or even higher) than your base salary — in effect at least doubling your overall compensation.
This example is purely a financial analysis of the three job offers, and does not take into consideration many other important factors that job-seekers should also evaluate before deciding on a job offer. These other factors are discussed after the table.
|Worldwide Widget, Inc.
New York, NY
|West Coast Widgets, Inc.
Los Angeles, CA:
|The Widget Company
|Cost of Living Adjustment:||-$31,500||-$20,000||+ $11,000|
|Medical, Dental, Optical:||$6,000||$8,000||$5,000|
|Life, Disability Insurance:||$3,000||$5,000||$4,000|
|401(K) or Pension Plan:||$20,000||$20,000||$25,000|
|Total Compensation Package:||$477,500||$477,000||$536,000|
As discussed in our Salary and Job Offer Negotiation Tutorial, there are many other factors that job-seekers may want to consider when deciding whether to accept an offer, including:
- Reputation of the company
- Corporate culture
- The work itself (in terms of interest, challenge, etc.)
- Quality of community (life, schools, etc.)
- Relocation expenses
- Dependent care
- Professional memberships
- Health club/country club memberships
- Tuition reimbursement
- Profit sharing
- Employee Assistance Program