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For people looking for jobs, two dynamics for the potential employee to consider include income and employee benefit plans. Too often, people will zero in on income without giving much thought to insurance coverage, bonuses, retirement plans, and other benefits. Many larger corporations offer incredible benefit packages, which are considered a part of the person's salary. Some of these plans are quite expensive so if the employee were to pay out of pocket, the person would not be able to afford the cost. Therefore, anyone in the job market needs to look at what plans are offered in addition to income.
One particular offering has to do with retirement plans. Many companies still provide employees with a variety of options such as annuities and 401K. With annuities, employees can choose from fixed or variable rate. Both have advantages but the variable rate annuity comes with a higher degree of risk. In addition, employees have varying levels of control regarding the way in which the money could be invested to include stocks, bonds, company stock, mutual funds, money markets, and so on.
Another important benefit is the 401K plan. This too is a great retirement option and for some companies, the amount of money the employee has taken out of his or her paycheck is matched by the employer. This might be a dollar-for-dollar match or something less but in any case, the employee is having additional money added to the retirement account, which builds over time.
Of course, even health, dental, and vision plans should be considered. Today, more and more companies are eliminating this particular benefit but some companies still have comprehensive plans. With the cost of healthcare being so high, finding a company with a great plan is certainly an excellent benefit. Finally, regarding retirement plans, some are downright confusing so prior to a person going out to look for a new job it would be helpful to talk to a retirement planner or financial investor for guidance. A few important tips for the potential employee include:
- Some companies provide employees with mandated benefits, even if the employee does not want them. This means that some of the benefits might not be anything the employee is interested in but because of the mandate, they still have to pay.
- Specialty insurance benefits should also be reviewed. For instance, the company might offer an employee, additional packages for more money, such as extended pregnancy leave, 100% employment insurance coverage, worker's compensation, and long-term disability.