Author Topic: Comparing Total Comp packages  (Read 2626 times)

ETBen

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Comparing Total Comp packages
« on: May 25, 2016, 10:20:26 AM »
Help me out here. Weighing an offer and possibly more.

What all should I consider when comparing total compensation:

Salary
Bonus Potential
Cost of Health Insurance
HSA: how do I factor this in??
401k match%
Do I care about the option to purchase stock at a discount?  They are in the Fortune top 20.
PTO

What else? 

rubybeth

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Re: Comparing Total Comp packages
« Reply #1 on: May 25, 2016, 10:29:21 AM »
HSA--sometimes employers will put money into this for you, on top of what they pay for your health insurance. It's also tax-free money.

Don't just factor in the cost of health insurance, look at what it covers--and what the deductible is. Cheaper insurance may mean higher deductible, which may or may not be a good thing for you.

dividendman

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Re: Comparing Total Comp packages
« Reply #2 on: May 25, 2016, 11:02:46 AM »
Stock grant/RSUs/Options
Responsibility/Scope
Work environment (physical and culture)
Hours - flexible? Long? etc.
Commute
Manager
Sick time
Parental leave policies/New baby policies

onlykelsey

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Re: Comparing Total Comp packages
« Reply #3 on: May 25, 2016, 11:33:04 AM »
Also figure out which of the benefits realistically can be used.  If you have parental leave, but half the people get fired when they come back, or you have 20 PTO days, but you can't take more than a half day, that's good to know.  I have vacation up the wazoo but can never take it, for example.

seattlecyclone

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Re: Comparing Total Comp packages
« Reply #4 on: May 25, 2016, 11:59:11 AM »
Do I care about the option to purchase stock at a discount?  They are in the Fortune top 20.

Depends on if you can sell the stock immediately. If so, the employee stock plan is like free money. If not, it's likely too big of a risk and not worth prioritizing.

BlueHouse

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Re: Comparing Total Comp packages
« Reply #5 on: May 25, 2016, 12:25:20 PM »
Salary
Bonus Potential - find out what the average bonus really was last year and the year before -- not the potential
Cost of Health Insurance - out of pocket maximum & what is covered
HSA: how do I factor this in?? - I'd either count it as an increase in employer 401k match, or a decrease in insurance premium
401k match%  - are decent fund choices available and what are the fees?  (as an employer, I have the option to pay for all fees, or to have fees deducted from the employees' accounts.) Are after-tax contributions or in-service rollover allowable?  both of these could be very attractive benefits
Do I care about the option to purchase stock at a discount?  They are in the Fortune top 20.
PTO

What else?
Flexible hours
Accommodation for emergencies and other "life happens" events
company-paid perqs (like cell phone, car, etc)
Training & conference attendance





ETBen

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Re: Comparing Total Comp packages
« Reply #6 on: May 25, 2016, 01:23:23 PM »
HSA--sometimes employers will put money into this for you, on top of what they pay for your health insurance. It's also tax-free money.

Don't just factor in the cost of health insurance, look at what it covers--and what the deductible is. Cheaper insurance may mean higher deductible, which may or may not be a good thing for you.

Good points and I have considered those too.

I think they have a HSA match, I need to check how much.  But not a straight contribution. 

Funny/sadly enough: I actually work in health insurance.  But I've never had an HSA and my role is kind of isolated from them.

ETBen

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Re: Comparing Total Comp packages
« Reply #7 on: May 25, 2016, 01:34:41 PM »
Do I care about the option to purchase stock at a discount?  They are in the Fortune top 20.

Depends on if you can sell the stock immediately. If so, the employee stock plan is like free money. If not, it's likely too big of a risk and not worth prioritizing.

Okay, explain that to me.  Basically b/c I am purchasing at a discount and then sell immediately to make back that % discount, right?  I never even thought of that!

Thanks all, this is helpful!

@Bluehouse, good points:

Job 1 Bonus is definite within a few % of how company performs.  My current is based on the company performance (good) but my job description metrics (crazy flawed).  Other job offers are less certain.  And at 20%, that's a big amount to consider. 

In-service Rollover: what is that and how does it benefit a person?

I think someone else mentioned maternity: god I hope there are no more babies in my future!

Intangibles: I have no intention of moving in the near future.  Job 1 gives me a broader experience and I will create a huge network in my region (3 states).  The others are higher level versions of my current role, but leaves me more narrow and while the network is more national, I'm not actually looking for that in the next 10 years. 

seattlecyclone

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Re: Comparing Total Comp packages
« Reply #8 on: May 25, 2016, 02:49:48 PM »
Do I care about the option to purchase stock at a discount?  They are in the Fortune top 20.

Depends on if you can sell the stock immediately. If so, the employee stock plan is like free money. If not, it's likely too big of a risk and not worth prioritizing.

Okay, explain that to me.  Basically b/c I am purchasing at a discount and then sell immediately to make back that % discount, right?  I never even thought of that!

Yes, exactly this. You'll have some fraction of your paycheck tied up for a few months waiting for the next stock purchase period, at which point you sell the stock for an immediate profit and reinvest the money in index funds, or pay your living expenses from this money so you can afford to increase your 401(k) contribution, etc.

Quote
In-service Rollover: what is that and how does it benefit a person?

This is basically part of the "mega backdoor Roth", which you can search for elsewhere on the forum. In a nutshell, some 401(k) plans allow you to make after-tax traditional contributions above and beyond the standard $18k contribution limit. These aren't that great all on their own because the gains would eventually be taxed at your regular tax rate as opposed to the lower capital-gains rate you would pay if you invested in a taxable account instead. However they become a great way to really beef up your Roth IRA when your 401(k) plan also allows you to withdraw this money while you still work for the company (an "in-service withdrawal."), because you can move it to a Roth account before you accumulate taxable gains.