Base Salary or Benefits - Which would you rather have more/better of?

[MrsCoolCat]

I'm curious to know if you'd rather make more money (overall salary), or have better benefits? If you'd rather have better benefits please list out what those benefits are/should be, e.g. 12 days PTO in addition to vacation, 10% bonuses, holiday party, healthcare coverage, etc. Actually, maybe list your top 3 since I'm sure everyone would want ALL the benefits in the world if we were ideally speaking! If you'd rather have more benefits, what is the percentage of which your salary would increase by if it actually included your benefits? Lastly, if you'd rather make more pay what is that figure and what benefits would you sacrifice or don't have at your current job?

The reason I ask is because it seems that some people (particularly younger ones) don't factor in their overall benefits package with their salary. I make X dollars a year. NO, you really make Y dollars because you have extra PTO days, have lunch provided and get sent home early every Friday! Idk I'm just making stuff up but I'm curious to know what kind of perks you have or want, etc.

A previous employer once sent a letter stating that my benefits were the equivalent of an extra $8k in addition to my salary. Too bad I don't have that letter, but I'm sure everyone's salary would probably be at least X percentage higher if we at the very least, included our health insurance, but (imo) younger people are usually thinking about their bottom line (salary) more than their health insurance if and when they are relatively healthy!

I also want to note that percentage based benefits (mainly 401K) profit more so those that already have high salaries to begin with! I know that's common sense but it just kind of sucks that if I'm not already making like $90k, my 3% is like 45% less! It's like that CEO example from the other thread. It's life but how unfair!

[FLA]

As a nurse, my last letter that said how much my employer contributed to my benefits was 14k. The pay in hospice sucks but I clung strongly to those benefits. So many people appeared to really not care when we'd be told what was being cut this go 'round. I get it for the married staff who use many of their spouse's benefits.  But there were lots of divorced and single people working there. 

I became ill in Sept and finally had to give up the job in June.  You really see your benefits in action when you have to use some you never have had to before. I suggest really reading up on them and if things like short term disability suck or there is no long term disability, get these on your own privately. 

The number one worst thing said by a freaking social worker, she should know this stuff, was in response to when we were losing our defined benefit pension: "I never even knew we had this pension. Thank you for having it for so long." Wait, what?  Who the hell would ever admit that they did not even know they had a pension?  And THANK them when they take it away?  She is single and had worked there 15 years.  We got a letter about it every year, how could someone be this stupid? She 50-ish, chances are if she didn't even know she had a pension, I doubt she's all up in her 403B.  Face punch, but gentle, she's tiny and would fall back, cracking her head and then have to use the health insurance she does not know she has 

[MrsCoolCat]

After my husband injured himself from a fall I truly realized the difference between good and sub-par health benefits, but yes, you're right about reading up on it. I would take it a step further and say be very acquainted with your HR handbook, too! Sadly, as a millennial (and perhaps also bc of my major/career field) I never really felt like I would ever be in a position to "interview my employer". Like I should be asking them all these questions about my benefits but how can I? I don't have the job yet and jobs are kinda scarce! That's just my opinion.

[FLA]

I've been told to keep the handbook you receive when hired for legal reasons. 23 yrs later I do not have it and do not know if any of it would've helped me. But if you guys get one, keep it because lawyers say to.

I find figuring out the health ins plan with the deductibles, co-insurance and cap of when you do not have to contribute anymore very confusing.  I've been told to keep a copy of your plan documents, as well.

[MrsCoolCat]

I've been told to keep the handbook you receive when hired for legal reasons. 23 yrs later I do not have it and do not know if any of it would've helped me. But if you guys get one, keep it because lawyers say to.

I find figuring out the health ins plan with the deductibles, co-insurance and cap of when you do not have to contribute anymore very confusing.  I've been told to keep a copy of your plan documents, as well.

Omg yes, those health insurance details are difficult & I've worked in insurance before! Like u said, u kinda never really know until u have to use it. Like wow, okay so a $3k deductible is horrible! Idk but my advice is to ask Qs at ur benefits meetings when u can & remember to.

[markbrynn]

To answer the original question:
Both the salary and the benefits count, and for things that you can buy (like health insurance or retirement funds/pensions) they are really interchangeable.

So, while I would always work to maximize my direct income, there are a few benefits that I definitely care about.
Flexibility in how much/when I work - both vacation days and day-to-day ability to go on some errand that needs doing without having to take a full day off. I currently take off about 40 days a year. I actually work as a contractor, so they are officially unpaid, but I consider 40 days as standard when I consider taking a job. I could work more days and make more money, but work-life balance is important to me.
No requirement for long days - Sometimes I'm paid by the hour, sometimes for a fixed 40 hours no matter how much I work. In either case, I don't want to be working long hours. Making extra money is nice, but when you're a contractor you have to set the limit somewhere. I prefer to eat dinner with my family, relax in the evening and get a good night's sleep.
Minimal stupid rules that treat me as a child - I want access to the internet, ability to take a break when I want to, etc. I want to be judged by my output not by how well behaved I am or how often I sit at my desk.

All of the other benefits, like free sandwiches or drinks, are nice, but if I make enough money I can buy as many sandwiches and drinks as I want.
Location (able to walk/cycle) is important, but isn't really a company benefit.

I agree that many people fail to properly factor benefits into their decisions between jobs. Things like pensions and 401k matches can have a massive effect on your long term net worth.

[startingsmall]

Glad to see this discussion.  I currently work FT as a veterinarian with a side gig doing freelance writing & academic editing.  I enjoy the side gig much more than my FT job and I'm currently feeling overwhelmed with all of my work, raising a toddler, trying for kiddo #2, and being a pastor's wife. 

I'm at a point in my career where I need out of vet med ASAP (complete burnout & compassion fatigue... hate the clients, frustrated by the animals, hate my awful corporate overlords), so I'm looking to gradually transition to FT writing/editing.  Obviously, that means that I don't want to drop that.  Instead, I'm considering a decrease to PT work at my FT job, so that I can maintain/increase my writing/editing work. I wouldn't completely leave vet med without something more stable than freelance lined up, but I feel okay with cutting back to PT until I can line up a permanent writing/editing position.

I work for a large corporation (vet clinic that's inside a big-box pet supply store), but our benefits are pretty medicore.  Our health insurance is a $2600 family deductible HSA plan... I like having the HSA, but miss the Obamacare plan that I had prior to starting this job that made it less daunting to see the doctor.  (We currently pay about $320/mo for family coverage through work and absolutely nothing is covered until hitting that deductible - no copays, etc.)  I like having a 401k, but it's only matched to a max of 3% of my salary.  (Fortunately, I would still be eligible for the 401k as a PT employee.)  I love having access to an FSA, but that's really the only benefit that's worth much to me right now.  I do have employer-provided STD and LTD, but I maintain my own LTD policy because of a lack of job stability.

Trying to decide whether it's really worthwhile to stay FT just for those benefits, or if I should try to cut back.  At my current level of writing/editing, I could cut back to 3 days/wk with no decrease in income and 2 days/wk with only a slight decrease in income (though I could easily pick up more work through the editing company I work with, so that should rebound pretty quickly).  My husband is totally uncomfortable with the idea of me leaving my FT job without another lined up, though, so I'm trying to decide what's reasonable. 

(Husband's position is FT and so we could get health insurance through them, but he's not comfortable with that for a variety of reasons including low job security and the financial strain it would place on the church.)

[ender]

Base salary. All else being equal it's much less likely my salary will be cut than benefits will be cut. However I definitely value benefits when considering job offers - ensuring you figure in the tax implications of benefits, too.

Right now, I would love to convert some of my benefits into additional salary if I could. We have a pension plan, I'd love if I could get that ~5% of my salary they contribute and convert it into pay or additional 401k match).

[I'm a red panda]

The total compensation of salary + benefits needs to be fair.  I wouldn't choose a better one or the other; the combination of the two has to work for me.

[midweststache]

I'm a grad student, so I don't get benefits and I get a shitty paycheck on top of it. But I do what I love so I'm not going to complain. There are worse things, and I'm privileged to be in this position.

DH's benefits are awesome, and he's got a pretty great paycheck on top of it. He could probably make $10,000+ if he searched out positions in bigger networks (the network he is in is mid-size for his field), but the benefits at his current job make staying totally worth it.

Awesome healthcare with super-low premiums, both in the LDP and HDP? Check.
Employer contributions to the HSA for the HDP? Check.
Super cheap but good dental insurance? WOOT.
Employer-paid life insurance? Yup.
403(b) matching? 3% y'all. With investment options that include low-cost index funds through Vanguard.
BUT ALSO AN EMPLOYER PAID PENSION. ALSO WITH VANGUARD.
Subsidized unlimited transit taken out pre-tax? Yuuuuuuup. (Car-free life, y'all.)
Discounts on day-care, pre-school, and private schools (unlikely, but there) for when we have progeny? Check.
Relatively flexible work schedule, including once a week telecommuting? Yup.
Good coworkers, great management, awesome VPs? Checkity-check-check.
Department potlucks, breakfasts, cookies, etc.? A super healthy and reasonable on-site cafeteria (for those rare occasions we run out of bread for his sandwiches from home)? YUP.
Easy commuting from our place? Check.

Look, I could go on, but suffice to say it would take a lot more than the $10,000 he could find elsewhere to change jobs. Hell, just liking his coworkers as much as he does--particularly his management and VPs--is enough to stay there for the foreseeable future.

[I'm a red panda]

I'm a grad student, so I don't get benefits and I get a shitty paycheck on top of it.

Seriously?  What kind of school do you go to? You're getting screwed!  DH had excellent benefits as a grad student, and he wasn't even a TA (who were unionized.)

Shitty paycheck, well, yeah...

[Bearded Man]

I'd rather have a good work environment with good benefits over slightly more money.

I'd rather make 100K a year working at a job I love, for a manager I like, with 5 weeks vacation, good health insurance, free meals, work from home options, than work a job making 125K a year with crappy hours, no flexibility, being overworked, an idiot for a boss, and crappy benefits.

Right now my salary is 150K but my total comp according to an online calculator with some rough numbers is 180K.

When this job ends, I'm going to hold out for a government job. I have had offers before, and get interviews for government jobs easily. My salary may be lower but will still be six figures but I get union protection, 5 weeks time off, excellent benefits, and a pension of 1K a month after putting in just 5 years, and those 5 years don't even have to be with one agency in my area...

I made my money. Time to coast into my 40's when this job ends and ride the train.

[Giro]

Good question.  I have decent benefits and negotiated an increase in salary to opt-out of healthcare.

I like PTO.  I have 5 weeks PTO and 10 days of sick leave.  BUT, you can only carryover 2 weeks of leave.  I like to have a bank of leave, so I don't like that part at all.  It does encourage folks to take breaks and rejuvenate, so I do appreciate the rule. 

I like a good 401k match.  Currently our sucks at 3% total or something like that.  I was annoyed so I quit researching it.  The 401k does have a middleman so the fees are a bit high.  I would prefer to be direct with Vanguard.  I like the fund options, I just don't like the service fees. 

I don't really care too much about the other benefits...discount cell phone is nice but it's offered to basically every company by Verizon to pretty meaningless. 

I like my flexible schedule.  I come and go as I please and stay as long as required to get my job done.  I don't like my employees to work more than 40 hours a week, so when you are at 40, you go home on Friday.  I do the same for myself.  I usually leave by lunch time on Friday. 

I had better benefits at a larger company, but I have higher pay at this smaller company.  I think it works well for me since I don't need healthcare.  If you need healthcare, it's often better to work for a larger company. 

[Baron235]

It depends on the salary, assuming you have to work the same amount for both jobs:

If I make 50k a year, I want more salary.

If I make 150k a year, I want more benefits.


Now, in the 50k scenario there could be benefits that make up the difference in salary, but you wouldn't normally get it. 

Bottom line, I place a dollar number on the benefits and just compare it. 

[MrsCoolCat]

Yea, I agree to working with good management. Unfortunately that's not a dollar figure u can pin point, but it does factor somewhat into work life balance & perhaps job stability. However, u can't really know how management is until u actually work there! All good points.

At this point I've lowered my standards to these 3: job distance, job stability/sane management and base salary. I can never get #1 and absolutely dread long commutes but it's somewhat inevitable bc of the city I live in vs the city most of the jobs are at.

It only really dawned on me yesterday while talking to a friend that I could retire early here bc of the diversity of things to do (the busyness), but I kinda loathe working here (city wise). Crazy traffic & rude drivers. I understand it's life but I've never lived outside of here, so it's all I know and I've been wondering about slower & less busy areas/cities/states.

[Davids]

I look at the sum of everything and then decide from there.

[GuitarStv]

The combo is what's important.  I'd take less base salary with more benefits, or more base salary with less benefits as being about equal.

[WYOGO]

Benefits are less important until you are hospitalized for a month and not only is 95+% of your 250,000 hospital bill covered by the company but you are paid your full salary the entire time and for the three weeks of recovery afterward. If that is not enough your long term disability benefits paid by the company were not even triggered yet in this time frame.

Above Average Salary + Comprehensive Benefits > High Salary + Marginal/Limited Company Benefit/Subsidy

I would take a 50-60K job that provided the following any day over a 80-90K that provided limited to none.

Short Term Disability
Long Term Disability - 1.5X Salary
Portable Pension + Vangaurd Managed 401K plan with Match
5-6 Weeks Paid Vacation
Full Dental/Medical/Vision

It is not always about the initial dollar value, better to grow with a company that offers these things even if it takes some years to reach though self development and career progression.

[big_slacker]

I actually had to run a spreadsheet with my old job vs the one I start in a couple weeks. There are a lot of moving parts and it's not always an easy call.

I had smaller base/higher bonus vs higher base/lower bonus. Close to the same with simple math but remember bonus is taxed higher so I had to compare take home on paystubs vs. estimated takehome.

6% 401k match vs 3%.

Great heath insurance at both, but several options at the new place vs just PPO at the old.

Free cell service old vs $800/yr health and fitness payout at new and a discount card for many local businesses.

Old when I travelled I got free food vs new having to prepare meals for the office.

Overall the new one is still better but the numbers were closer than I initially thought.

[Chris22]

Wife has lower salary + good benefits, I have higher salary and crap benefits (don't take my employer's health plan, for instance). 

[irishbear99]

I took my job (Federal government) for the salary and stay for the benefits. I actually make a good salary now, as I started 16 years ago and worked my way up to a pretty high position. Sometimes the bureaucracy gets me down, but so far the benefits make it completely worth it. My goal is to stick it out to 30 years, ER (well, ER for me) at 52, and defer my pension until at least minimum retirement age (57).  This thread actually inspired me to do the math...turns out the total annual benefits paid equals approximately 37% of my salary.

[Freedom2016]

Hmm. I pretty much get no benefits. Or, I should say, any benefits I do have I'm paying for myself. (Health ins, dental, LTD, life ins) That's the deal being a partner in a small firm. I also have variable income, which makes it extremely difficult to forecast earnings more than 6 months out.

Every now and then, I think about what it would be like to have a salaried job (more stable) with more benefits. And, every time, I decide I prefer my current situation: it would take A LOT in both salary and benefits for me to give up my autonomy, work-life balance, and income potential to punch someone else's clock and be answerable to a (potentially terrible) boss.

[midweststache]

I'm a grad student, so I don't get benefits and I get a shitty paycheck on top of it.

Seriously?  What kind of school do you go to? You're getting screwed!  DH had excellent benefits as a grad student, and he wasn't even a TA (who were unionized.)

Shitty paycheck, well, yeah...

Humanities at a not giant university. We're funded significantly less than other departments (particularly STEM) because we don't bring in external funding; the healthcare available is one of the worst plans I've ever seen, and that's the ONLY benefit available to grad students (assuming you don't just stay on your parents health plan until you're 26, which most of my peers do because of how bad the insurance is). I survived for a few years, and then DH and I got married and I got to piggy-back of his health/dental/etc.

[RelaxedGal]

In my 20's I would have said base salary.  At 37, I'm leaning toward benefits and intangibles.

Last week I was contacted by a recruiter for a great position.  Seemed like a great fit, newer technology to work with, 10% raise.  I was tempted, but didn't bite.  Why?  Because right now I have an 8% 401k match, shorter commute, 37.5 hour work week (and there's a parade out the door at 4pm, no over-achievers here) and a pretty chill environment at a stable company.  The new opportunity was a start-up.  I've run that treadmill before and don't want to go back to those hours and that stress now that I have a preschooler.

So, like MrsCoolCat, my priorities are pretty much job distance, job stability/sane management and base salary.

[Wilson Hall]

I'm voting for benefits. Health insurance premiums for my employer are meh, currently $5,000 a year out of my paycheck for two people.  Copays are decent: $15-40 per office visit, $15-50 for most prescriptions, and $250 per hospital admission (inclusive). None of this "$25 + 40% of in-network blah-blah-blah" garbage.

It's the six+ weeks of vacation a year and general low stress that keeps me where I am.

[ender]

I had smaller base/higher bonus vs higher base/lower bonus. Close to the same with simple math but remember bonus is taxed higher so I had to compare take home on paystubs vs. estimated
takehome.

Man, this has got to be one of the most commonly misunderstood parts of how taxes work.

[Jack]

Although the overall value of the total package is obviously the most important thing, I'd generally prefer to have a lower salary but equivalently better 401k match. (E.g. instead of $X salary with no 401k match, I'd rather have $X - $18,000 salary but dollar-for-dollar match up to the IRS limit.) Lower taxes!

(Alternatively, you could think of the salary vs. 401K match as being equivalent when [match amount] = [additional salary] * (1 + [actual tax rate on that additional salary]), but that's more complicated.)

I actually had to run a spreadsheet with my old job vs the one I start in a couple weeks. There are a lot of moving parts and it's not always an easy call.

I changed jobs a few months ago and it was a very easy call, because both salary and almost every individual category of benefits were better: more interesting work, bonus where before there was none, HSA-eligible health care, shorter commute, etc. The only exceptions are that the new company's 401k has higher expenses than the old one and that I get less PTO (days off of my choosing), but there are more company holidays so the total time off is higher.

If my existing job and potential job were so similar that I had to make a spreadsheet to choose between them, I probably wouldn't bother and would just keep the existing job.

I had smaller base/higher bonus vs higher base/lower bonus. Close to the same with simple math but remember bonus is taxed higher so I had to compare take home on paystubs vs. estimated
takehome.

Man, this has got to be one of the most commonly misunderstood parts of how taxes work.

Yeah, aren't bonuses just ordinary income paid out in a lump sum instead of distributed evenly over the year? It only seems like they're taxed higher because they're the "last" income added, but since money is fungible that's only a psychological artifact. Well, and I guess also because the withholding is funky, but even that's just temporary and you get it back the next time you file.

[big_slacker]

I actually had to run a spreadsheet with my old job vs the one I start in a couple weeks. There are a lot of moving parts and it's not always an easy call.

I changed jobs a few months ago and it was a very easy call, because both salary and almost every individual category of benefits were better: more interesting work, bonus where before there was none, HSA-eligible health care, shorter commute, etc. The only exceptions are that the new company's 401k has higher expenses than the old one and that I get less PTO (days off of my choosing), but there are more company holidays so the total time off is higher.

If my existing job and potential job were so similar that I had to make a spreadsheet to choose between them, I probably wouldn't bother and would just keep the existing job.

I had smaller base/higher bonus vs higher base/lower bonus. Close to the same with simple math but remember bonus is taxed higher so I had to compare take home on paystubs vs. estimated
takehome.

Man, this has got to be one of the most commonly misunderstood parts of how taxes work.

Yeah, aren't bonuses just ordinary income paid out in a lump sum instead of distributed evenly over the year? It only seems like they're taxed higher because they're the "last" income added, but since money is fungible that's only a psychological artifact. Well, and I guess also because the withholding is funky, but even that's just temporary and you get it back the next time you file.

I was just looking at the percentage of tax using simple math on the paystub and saw that the withholding was much higher. After reading yall's description above I NOW understand that the high amount of the bonus means taxes are withheld as if I was in the 33% bracket instead of my actual 25% bracket. But it gets adjusted to actual rate when I file. Thanks for the comments!

In reference to switching jobs, I would agree on total comp (especially since the previous employer was a great and ethical company) but there were other factors. Previous job had me traveling 25% or more, sometimes on very short notice. My kids are now both going to pre-school and wifey back to trade school. I needed to be at home and have a regular schedule. But the numbers had to make sense too. :)

[squatman]

Depends on how much base salary the better benefits cost, but three benefits I value highly are:

1) remote/telework options. Even if it takes a while to earn, having an office culture that appreciates/encourages working from home matters a lot to me.
2) PTO. I have 5 weeks right now and I'm not sure I could give much of that up in a new job.
3) one of great healthcare coverage or company 401k match (since I can only pick three). It's basically money in the end, but it's financial/personal benefit you can't get in straight salary.

I value sane hours and a short commute (why i'm looking for a new job now!) as well, but those are things I would filter companies on before we get to things like benefits.

[teen persuasion]

Benefits, hands down, due to the tax treatment and by extension FAFSA treatment.  DH's previous job paid health insurance completely (for HDHP option) AND contributed to his HSA.  Now his HI premiums plus HSA contributions are nearly $6k he was not paying before.  Eligibility for reduced lunches is based on gross income, before any withholding, and eligibility is an important part of the Simplified Needs Test or Auto EFC = 0 on the FAFSA.

  So I'd rather have a lower base wage + great benefits (fully paid medical and HSA contributions, full matched 401k contributions vested immediately, LTD/STD ), vs higher wage equivalent to purchasing the same things myself.

[AlwaysLearningToSave]

To me the biggest thing is flexibility in benefits.  My employer's health insurance is structured to be a flat premium per employee (regardless of age), and per family (regardless of number of dependents).  Employer covers a dollar amount equal to 85% of employee-only premium, regardless of the coverage you elect.  This basically means that my young, pretty healthy family of three would have to pay through the nose for the employer's coverage because we would pay the same as an unhealthy middle-aged family of seven.  My whole family can get covered on the private market w/o subsidies for basically the same cost as the portion my employer is currently paying for just my coverage.  Meanwhile, I pay hundreds more per month on the private market for my wife and child to be covered on a separate plan.  I am trying to convince the employer to allow me to opt out of the firm's health insurance and instead receive an-expense neutral contribution to a health savings account.  They are at least receptive to the idea, but I wouldn't be surprised if it doesn't happen because it is probably a more significant and costly change to make than I realize. 

But the bottom line?  Flexibility in benefits that allows employees of different life circumstances the reasonable possibility of achieving relatively ideal balances of tax-advantaged benefits.

[lightmyfire]

Let's just say I didn't become a university librarian for the salary.  I've made a lot more working for private businesses, but I seem to come back to universities for a combination of benefits - flexible schedule, time off, tuition remission, etc.  I also get a free bus pass, meaning I have absolutely no commuting expenses and a super easy 10 minute ride to work.  In my current position we get 4 weeks paid vacation along with university holidays (i.e. 2 weeks over Christmas), and that makes up for quite a bit of salary disgruntlement.  However, universities are notorious golden handcuffs institutions.  For example, we're part of a pension program rather than a 403(b). I don't get vested in their contribution (currently at 11% of my income!) until I've been here 5 years.  It makes me hesitant to pursue other opportunities.

[MsPeacock]

Depends on how much base salary the better benefits cost, but three benefits I value highly are:

1) remote/telework options. Even if it takes a while to earn, having an office culture that appreciates/encourages working from home matters a lot to me.
2) PTO. I have 5 weeks right now and I'm not sure I could give much of that up in a new job.
3) one of great healthcare coverage or company 401k match (since I can only pick three). It's basically money in the end, but it's financial/personal benefit you can't get in straight salary.

I value sane hours and a short commute (why i'm looking for a new job now!) as well, but those are things I would filter companies on before we get to things like benefits.

My list is about the same. We were just offered limited telework and I am so excited. Most of my job involves being in the office (because I see patients). I can do administrative tasks at home. This will allow me to cut out two days of childcare! That is worth quite a bit of money right there. Plus I get to be home w/ my kids two afternoons per week. I love it! My commute is ok (not ideal, but ok), PTO is decent and will get better in a few years - I currently get about 4 weeks plus federal holidays plus 20+ sick days.

In an ideal situation you'd get a menu of options and pick and choose what you want in terms of benefits and salary would be a pot of money - you could take it all home and have no benefits, or pick things like PTO, 401K, etc.

[runningthroughFIRE]

I consider total compensation, but since I don't know exactly, for example, how much of my health plan premiums my employer pays, the calculation for the trade-off gets a little hand wavey.  For me, as long as my base salary is large enough to max out retirement accounts and live my life (with a little extra to throw around in for funzies at vacations or hobbies) then I'd rather get more in benefits for the tax advantages.  I'd take an additional $1K as an employer 401(k) match than an additional $1K to my base salary, for where I am.

As for us young-uns not valuing benefits as much as base salary, I'd argue that it makes sense (at least for the intangibles).  If you're in good health and are unlikely to use your health benefits, then you would likely rather your compensation be distributed more heavily to areas you can get a current benefit from.  You don't gain anything from having a great benefits package and not using it, but you would if the resources from that benefits package were instead put towards your salary and invested.  As someone in my early 20s and in fairly good health, I don't weigh my health benefits as much today as I might in a few years when I'm more likely to use them.

[letired]

I consider total compensation, but I about exploded when I got that 'estimated value of benefits' letter at an old job where I was paid peanuts. Yeah, it's all very well and good to say my total compensation is ~50k, but when i'm taking home a significantly smaller fraction of that, STFU and GTFO. Am I the only one who finds that letter completely condescending? Yeah, I understand there is a monetary value to health insurance and retirement. But since I wasn't staying long enough to vest, the point was sort of moot.

It's all good though. I transitioned into a much better career and now make much more than that in salary alone! With good benefits!

[AlwaysLearningToSave]

Am I the only one who finds that letter completely condescending? Yeah, I understand there is a monetary value to health insurance and retirement. But since I wasn't staying long enough to vest, the point was sort of moot.

I think that letter is hugely important because otherwise employees have no concept of how much money they are actually earning (or at least costing their employer).  Many employees know enough to ask whether other jobs have health and retirement benefits, but don't know enough about whether or not they are getting a good benefits package.  This at least puts some dollar amount on the benefits.  Whether it sinks in for the employee is another question entirely.

[letired]

Am I the only one who finds that letter completely condescending? Yeah, I understand there is a monetary value to health insurance and retirement. But since I wasn't staying long enough to vest, the point was sort of moot.

I think that letter is hugely important because otherwise employees have no concept of how much money they are actually earning (or at least costing their employer).  Many employees know enough to ask whether other jobs have health and retirement benefits, but don't know enough about whether or not they are getting a good benefits package.  This at least puts some dollar amount on the benefits.  Whether it sinks in for the employee is another question entirely.

Yes, putting a number on it helps compare, but I don't think I've ever heard of that showing up at any useful time (ie, when the job offer is made).  The tone of the letter I got was very shut up and like it.  I saw that letter as a very clumsy way of trying to point out that no, you aren't as underpaid as you thought, but I obviously found their argument less than convincing. Can't buy groceries with health insurance, no matter how good the coverage!

[Scandium]

Depends, obviously. The benefits we have, which I'd rather have in cash are a) low deductible health care and b) free, endless sodas. Somewhat ironic combo.

I don't drink any soda, eat healthy and work out regularly, so I hardly ever go to the doctor. Our company is full of older, fat guys that eat crap and drink gallons of Dr Pepper (and drive 1/4 mi to get lunch at chick fill'a). I'm sure my health insurance is worth thousands, but the old guys are the ones who benefit. They are also the ones who make the decisions so I'm not surprised it is this way. I'd rather have a high deducible plan and more money in my pocket. Or really; more money in my 401k!

[Cranky]

It depends on where you are in life.

Pre-kids, grad student poverty, healthy 20-somethings? we needed money, money, money. We rarely went to the doctor, so the health insurance wasn't much compensation for us.

OTOH, the retirement plan than we paid nothing at all into will pay for our kitchen remodel.

When we had small kids, we were all about the benefits.

Now, as we look at retirement... I'm socking my whole small salary into my retirement fund.

Honestly, we have picked work that we love over either salary or benefits, and I'm pretty good with how that's worked out. YMMV

[clarkfan1979]

For me, time off is the most important. You technically can't buy it with a higher salary if the company doesn't offer it. The only way you can purchase it is through early retirement.

[Need2Save]

I've been told to keep the handbook you receive when hired for legal reasons. 23 yrs later I do not have it and do not know if any of it would've helped me. But if you guys get one, keep it because lawyers say to.

I find figuring out the health ins plan with the deductibles, co-insurance and cap of when you do not have to contribute anymore very confusing.  I've been told to keep a copy of your plan documents, as well.

Just curious....Are you a union employee?  I typically only see comments like that from individuals represented by a Collective Bargaining Agreement.

Most employers (at least the smart ones that know something about employment law) will disclaim any and all policies in the handbook to subject to revision, termination, or modification by the employer at any time with or with our notice and with or without reason.  Therefore, they have the right to change any policy in their handbook whether to comply with a new law or just because they feel like it.  Unless you are covered by a union contract, or have a personalized individual employment contract, you are just keeping extra paperwork for no reason.

Now Plan documents for your insurance plans are something else because you never know when you have to fight the insurance company for mishandling or processing your claim incorrectly and you may need that to back up your appeals. 

[Need2Save]

It depends on where you are in life.

Pre-kids, grad student poverty, healthy 20-somethings? we needed money, money, money. We rarely went to the doctor, so the health insurance wasn't much compensation for us.

OTOH, the retirement plan than we paid nothing at all into will pay for our kitchen remodel.

When we had small kids, we were all about the benefits.

Now, as we look at retirement... I'm socking my whole small salary into my retirement fund.

Honestly, we have picked work that we love over either salary or benefits, and I'm pretty good with how that's worked out. YMMV

Totally agree that it's the stage in life you are in which dictates your priorities.  When I was younger with and without kids, the base salary was super important to me.   Later, when the kids came along, the health insurance, time off, and flexibile work hours were more important. Luckily my DH had good health plans at his job.

Now, I cover the whole family on my plans, because my DH's company severely cut back their plan and increased the amount employees had to contribute.   I'm now in a more stressful job with a lot of responsibility so even though time off is still important to me, because my responsibilities do not end magically at 6pm each night, I end up working more on the weekend and on my days off but I also get paid a much better salary.   Since my bonuses are calculated on a % of my base, I want my base to be as high as possible to maximize my bonus when it's paid out.  However, a good 401k plan and healthy employer match are high on my list as well.

As a Benefits professional, I have enjoyed reading everyone's comments.  It confirms what I see on a daily basis and supports some of our thinking when making strategic decisions for upcoming years.  There is no one size fits all.  If you have a multi-generational workforce, you have to take care of all of them:  the Millenials, Gen-X-er's, Boomers, and Traditionalists.  Although you hope to never need it, a solid health plan with a lower out-of-pocket maximum, life insurance, short and long-term disability can be extremely valuable when crisis strikes.  Believe me, your employer is going to pay out the money either through salary or benefits anyway.  Making the decision about how much to funnel into each bucket and keep your Company profitable is ever more challenging with ACA these days!!  (Not speaking of course to those working government positions or in the military).

[MsChewieBear]

I would absolutely take a lower salary if I had fully paid benefits (or benefits with a deductible of $2,000 or less). Our current deductible is $4,000, but our out-of-pocket max is $8,000. When I go to the doctor or have a procedure, the facility processes it through my insurance company, and then I owe whatever amount is due after the network discount (up until I hit the deductible). Once I hit the deductible, I pay 20 percent of everything until I meet the $8,000 OOP max. This plan is through my husband's employer. Did I mention he makes $11.68 per hour? (Yes, we know, he needs to earn more; we're moving 2,000 miles from home so he can get away from the terrible job market we are in.)

This wouldn't be so bad if we had one bad year, but 2012 through 2015 have been awful for me in terms of medical expenses. I spent two weeks in the hospital after being diagnosed with heart disease and having two cardiac catheterizations. Then I went into acute kidney failure because of the dye they used during one of the caths. Then I couldn't take a deep breath for about two years. It turns out I had adhesions from previous abdominal surgery stuck to my liver, diaphragm, and gallbladder. I had my gallbladder removed, and the surgeon took down some of the adhesions during the surgery. Finally, I could breathe again! Throw in $1,400 or so worth of lab tests every three months (to monitor my kidney function), and I met the OOP max in 2012 and 2014, and I came very close to hitting it in 2012.

[oinkette]

My employer regularly sends out a document to each of us breaking down what our benefits would come to monetarily.  I've been job hunting and some of those I just factor in on top of what I make in terms of deciding at what salary I'd leave for, because some of them are just too sweat.

But job hunting, as it turns out, has made me VERY grateful for a lot of the benefits I currently get...even the piddling ones.  The last place I interviewed with didn't even have a coffee machine. I hate that I'm getting a bit comfortable where I'm at and I know this limits my financial growth, but when I have to pay to park 5 blocks away (in Houston where you get wet outside either from rain or humidity...or both) because you don't have a parking lot, it matters! Especially since my current situation gives me FREE parking right next to the building.

I guess my point is, I would love a higher salary as that would allow me to get to FIRE quicker, but some benefits during the progression are non-negotiable, even if it means lower pay.

[mm1970]

After my husband injured himself from a fall I truly realized the difference between good and sub-par health benefits, but yes, you're right about reading up on it. I would take it a step further and say be very acquainted with your HR handbook, too! Sadly, as a millennial (and perhaps also bc of my major/career field) I never really felt like I would ever be in a position to "interview my employer". Like I should be asking them all these questions about my benefits but how can I? I don't have the job yet and jobs are kinda scarce! That's just my opinion.

It really depends on if you are in a position of power.  If you have a job, you have power.  If you have more than one offer, you have power.

I have to look at the overall package.  I've dipped my toe into the job market - looking for a new job.  I need: salary, PTO, health care, flexible spending account.

For example:
1.  FSA lets me put aside $5000 pre-tax for daycare.  That benefit is worth at least $1500 a year.
2.  PTO: I get 34 days off a year (vacation + holiday + sick).  So I can calculate the $ value of that and add that to my current salary
3.  Health care: my husband's isn't great, and he doesn't have dental.  With 4 people now with teeth...

I've got two kids and I can't imagine getting much less PTO than I get right now.  One job I interviewed for offered 19 days.  Um, no.
I'd love to have some matching of the 401k.  I don't get that right now.  Something else to consider if a company doesn't match is the Highly compensated employee 401k limits.  I max out my 401k contributions, and that saves me on taxes to the tune of $5k a year.  A new job with a bigger paycheck might take me into HCE land.

(Actually, the FSA and 401k probably don't save us in taxes because we get hit with the AMT).

My husband's company has killer 401k contributions, to the tune of an extra $25k to $30k a year.  That's real money!!

But more than all this is flexibility.  I need to pick up my kids from school some days and drop them off others.

[mozar]

I'm single no kids. I am considering a job offer that offers 3 weeks vacation and no 401k match. I have a match and 4 weeks now. I'm considering it because they were able to come up another 4k to make up for no match and less vacation. I do want kids but for the next couple years I want to get as many green workers as possible.

[bigstack]

I make ~110k.
I get 7 weeks of vacation a year and i work from home. on avg I put in less that 15 hours of work each week. sure there are times i work 60 hours but there are also times i work 2. this job allows me to go play golf during the week with my dad and other things of that nature when i am not busy with client meetings. it is like semi retirement.

i have had job offers for 30 k more and turned them down. i would think hard at a 50k raise if they expect me to work 40-60 hours a week.

so to the OP question... If free time is a benefit i value that above all else as long as i am making a decent salary. most other benefits use the dollar as a measuring stick and thus you can total them up. the only other benefit worth mentioning is the job gives you experience/education/skills that can lead to a better job in future.

to me people should look at their hourly rates...not what the company says it is but what your true rate is for the number of hours you put in for your salary. the more hours you work the lower your hourly rate. the less hours you put in the higher your hourly rate. people talk about not getting raises after busting their ass for a company, and they do this year after year. I ask them if you know you are not gonna get a raise no matter what then why not give yourself a raise by working less? leave work early...take a long lunch break and go to the gym or for a walk.

I am not advocating not doing your job... just advocating not going above and beyond for a company that has proven they wont reward you. the easiest way to get a raise is to get a new job.

[mm1970]

I ask them if you know you are not gonna get a raise no matter what then why not give yourself a raise by working less? leave work early...take a long lunch break and go to the gym or for a walk.

I am not advocating not doing your job... just advocating not going above and beyond for a company that has proven they wont reward you. the easiest way to get a raise is to get a new job.

Yup, started doing this about 6 months ago.  Work from home more, spend more time doing kid stuff/ PTA stuff, leave early on Fridays.

[surlygirl]

For the tangible, measurable benefits (health insurance, 401k, etc..), I'd almost rather have the salary than the benefit.  Why?  Because the options through work are usually limited and restricted.  If I go through the work health insurance plan, I'm limited to the options they're offering, but I can buy my own insurance plan with whatever coverage I feel is the right fit if the company is willing to pay me the money they would have contributed to my premiums.  I can put money into a Roth or Trad IRA myself, and choose whatever damn funds I want without picking from the 20 or so that make the 401k manager the most money.  I don't care about life insurance/STD/LTD benefits or day care benefits or FSA, as I either already have it covered or I don't use those, so having those offered through work don't help me at all, even though they cost the company money to offer and manage them.

Another added benefit (see what I did there?) of having a higher salary is negotiating power when looking for another job.  I can tell them I make $xxx amount of money currently, and that I'm not willing to take a pay cut.  I don't have to tell them that I'm paying for my own health insurance or investing on my own if they happen to offer kickass benefits at the new place.

The intangible benefits (perhaps I should say those without a direct financial value) are the ones I focus on the most.  Can I work from home when I need to?  What if I need to take a few hours off to take my kid to the dentist?  Am I going to get work calls during dinner or at 2am on a Sunday?  How anal is my boss?  Do I like my coworkers? And most importantly, can I wear jeans to work?

It all boils down to what your priorities are, and what you can do on our own outside of the benefits offered at work.