Considering Employee Benefits
Employee benefits provided by an employer are often undervalued when considering a new job offer by younger workers since their stage in life is usually more salary-focused as they strive to meet the growing financial demands of adulthood and family.
To view the full article please register below:
Considering Employee Benefits
Younger workers tend to undervalue the employee benefits provided by an employer when considering a new job offer since their stage in life is usually more salary-focused as they strive to meet the growing financial demands of adulthood and family. That may be a mistake.
The Value of Employee Benefits
The financial value of employee benefits is typically not quantified, making the intangible harder to appreciate. Indeed, some of the value of such benefits are only realized when the unexpected happens.
Perhaps the most valuable of employee benefits is the most underappreciated by younger workers. Health insurance may be of secondary concern to many young, healthy workers, but can provide an important financial safety net whose value will best be understood when the need for medical care arises.
Yes, young employees are less likely to need health care, but they are not immune to accidents that could result in expensive medical care and long-term rehabilitation. Much like home insurance to protect against catastrophic loss (which most people never, thankfully, cash in on), health insurance is about making sure unforeseen medical issues do not undermine financial health.
Another invaluable employee benefit which should be careful consideration is the company’s 401(k) match. While younger workers may feel that retirement is too far away to be concerned with, even the Social Security Administration states it’s better to start saving early, with the easiest way being through work.1 A company match is essentially free money, so well worth taking advantage of.
The benefits package offered by an employer also sends a signal of how much an employer values its workers and may provide insight into the company’s culture and whether an individual might enjoy working there.
Moreover, a properly structured benefits package can lead to a better work-life balance (e.g., flexible work scheduling, unlimited vacation time, paid parental leave, and paid time off), while other benefits, like student loan and tuition assistance, can help reduce the stress of high student debt or provide the financial assistance to further an education to improve an individual’s professional (and financial) prospects.
Don’t Take Our Word for It
In one survey that asked 2,000 workers what benefits would they give “some consideration” or “heavy consideration” to when choosing between a high paying job and a lower paying job with better benefits, 88% said they would consider taking into account better health, dental and vision insurance.
Close behind health care coverage was a more flexible work structure—flexible hours, more vacation time and work-from-home options occupied the next three highest benefit considerations.2
In another survey by industry consultants Willis Towers Watson, 78% of employees indicated they were more likely to stay with their employer because of their benefit program, while 74% said the overall benefits package was at least somewhat influential in their decision to leave an employer.3
When considering a new job opportunity, look at all aspects of the offer. While some put salary above all us, employer benefits can add a lot of value to increase quality of life—immediately and into the future.
Please reference disclosures at: https://blog.americanportfolios.com/disclosures/