The salary is just the tip of the iceberg. Ask the right questions, and you can avoid surprises.

Job offer review, the hidden numbers

Do you know what job offer review questions to ask when contemplating a new position? I give a lot of job offers in my line of work, and it surprises me how often a candidate will take a job without asking for a job offer review. The candidate hears the hourly rate or the annual salary and “accepts” the role. No questions, no further probing. I understand why these questions are not asked. It could be any one of the following reasons:

• Too excited to ask questions beyond the salary
• Feels that asking additional questions is appropriate and will jeopardize the job offer

Most candidates don’t worry about anything beyond the annual salary.

Tip of the iceberg

The annual salary is just the tip of the iceberg as it relates to the overall compensation package. Companies put a lot of effort into putting together a comprehensive offer beyond the financial component. This is all in an effort to recruit and retain you, especially in a market where unemployment is so low. The non-cash components of the offer can make a big difference. 

Below are some examples that can add to or take away from your cash salary. Next time you receive an offer, take the time to conduct a job offer review and review the hidden components. 

Working from home

It’s OK to ask about remote work

• In a post-COVID world, we are recruiting many employees because our prior employer was asking them to return to the office. If remote work is important to you, feel free to ask if it is available. 
• Remote work will save time and reduce gas expenses (with the Ukraine conflict, gas prices are increasing). Both can boost productivity. (Just be sure to show your face occasionally to build relationships.)

Medical Benefits

1. Is your family physician in the carrier’s network? This can be especially important if you have children or visit a doctor regularly.
2. How much is the deductible? If the deductible is annual, you will need to cover all expenses until it is met. If you receive an offer for $50K and have an annual deductible of $3K, your take-home pay after your deductible is $47K. Also, keep in mind that taxes will be deducted from the money you earn before you pay the $3K deductible. You may need to earn $ 3,400.00 before taxes to meet that $ 3,000. This makes your annual salary $50,000 – $3400.00.  
3. Does the company offer an FSA or HSA program? This is a program that lets you sock away pre-tax money to pay for medical expenses like deductibles, glasses, and even childcare. This can help with point number 2 above.
4. When do the benefits start? Some companies will start new-hire benefits on the first day of the month following the start date. In companies with high turnover, benefits might not start until the third month.  This expense can reduce your take-home pay. 

It’s completely acceptable to ask for a copy of the medical plan and costs before signing the offer letter

Matching 401K and what is the vesting period?

• A company may say they have a match of up to 5%, but it may take you 5 years to fully vest into the program. Where I work, we will match up to 4% on your first day of employment. That’s right, fully vested on Day 1. Some 401K’s are set up so you are only eligible for a match of 1% after 12 months, 2% after 24 months, etc. With today’s average tenure of 2 years at a company, the 5% match may not be 5%. Ask about the vesting period.

Paid Time Off (PTO)

• How much PTO does the company offer? Some companies will start all employees with 2 weeks of Paid time off. Where I work, we offer 3 weeks of PTO and sick time to be used however you want. In addition, we offer paid time off for birthdays, jury duty, death in the family, and moving homes. These days can add up if you are asked to use Sick Leave.   

Commute subsidies

• Bus Pass: I live in a city where companies of a certain size are required to help reduce traffic. Most companies solve this by providing a subsidy for public transportation. But most companies are not just going to offer this up. (We do offer it up, and we fully subsidize this cost to the employee) Make sure you ask; otherwise, this can be an additional expense.

Annual salary reviews

• Have you asked how often salary reviews take place? If a company doesn’t have a formal program, your salary may not be reviewed regularly. Larger companies will have a formal review cycle. Smaller companies and start-ups may not. Don’t think that asking for a review will make you look greedy. Take the approach that you are going to be growing your skillset and adding so much value that the company should want to give you an annual review. 

There are several items in a compensation offer that can add to or reduce the annual salary. It is perfectly acceptable to ask about any one of the above items, and I am surprised when someone doesn’t. You may not be able to do anything about a medical plan’s deductible, but at least you know what you are getting into. Read the fine print and don’t just worry about the cash piece of your offer.

See you at the after-party,

HRNasty

nasty: an unreal maneuver of incredible technique, something that is ridiculously good, tricky, and manipulative but with a result that can’t help but be admired, a phrase used to describe someone who is good at something. “He has a nasty forkball”.

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