Most people focus on the salary figure when offered a new job, and that’s understandable. Whether you can cover expenses with enough room to save and invest is the main priority, but what often goes overlooked are the other benefits included in a total compensation package.
Companies are now developing reports for employees demonstrating all that is available to them. These can be helpful, but not all of them will provide one, and it may not be top-of-mind for you to go digging into benefits details.
To better highlight the actual value of a 9-5, let’s take a look at the common fringe benefits you can expect to receive, as well as some of the lesser-known ones you might be overlooking.
Benefits Commonly Offered
- 401(k) plans with employer matching
- Annual bonus
- Health/dental/vision insurance
- Paid Time Off (PTO)
- Health Savings Account (HSA) or Flexible Spending Account (FSA)
Getting people to contribute enough to their 401(k) to receive their company’s match is perhaps one of the greatest improvements to retirement outlook in recent years. Receiving 3-6% of an annual salary from your employer for simply contributing to your plan is a no brainer.
An annual bonus never goes unnoticed, and while quality healthcare insurance, PTO, and employer deposits into an HSA or FSA are heavily utilized, the monetary value of each tends to get undercounted by the employee. These benefits add significant value to total compensation, to the tune of $10,000-$20,000 per year or more.
Possible Fringe Benefits
- Paid parental leave
- Adoption or fertility assistance
- Dependent Care Flexible Spending Account
- Remote or hybrid work arrangements
- Financial planning or coaching services
- Signing bonuses
- Referral bonuses
- Stock options/Restricted stock units (RSUs)
- Employee stock purchase plans (ESPPs)
- Profit sharing plans (PSPs)
- Student loan repayment assistance
- Legal insurance and services
- Childcare subsidies or backup childcare
- Pet insurance
- Wellness stipends
- Time off for volunteering
- Subsidized meals
- Deferred compensation plans (common for high earners)
Increasingly, employers are offering generous paid parental leave. Sometimes, it is available to both the mother and the father. As a new father myself, I was awarded 16 weeks of paid parental leave at 100% of my salary…talk about value!
Along the same line, a Dependent Care Flexible Spending Account can be a great way to cover childcare costs through pre-tax funding. I contributed to my employer-offered account and was able to reduce our pre-tax income by $5,000 in 2024!
Another personal favorite of mine is the ability to purchase company stock at a discount (often 5-15% less than market value). While this is common in Fortune 500 finance, tech and pharma companies, it is less so in retail, manufacturing and small business.
Adoption and fertility assistance is another recent benefit that supports the prospective or growing family, bringing significant savings. IVF is an expensive procedure, and a number of large firms offer lifetime benefits of $10,000-$30,000. Some tech and finance companies exceed $30,000.
Final Note
I want to encourage you to spend time – particularly when evaluating an offer – combing through the full benefits package. A total compensation package is much more than just salary and an annual bonus, so be sure to take advantage of what’s available to you.
Discover more from The Budget Brainiac
Subscribe to get the latest posts sent to your email.
