7 Signs Your Job’s Total Pay Is Worse Than It Looks on Paper
A new salary offer may look great on paper, but what if that number isn’t giving you the full picture? More workers are starting to realize that the real value of a job often hides in the fine print, and sometimes, it doesn’t add up the way you think it does.
Jobs experts share eight signs that your total pay isn’t as good as it appears, so you can be prepared.
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1. The Salary Looks Good, but the Benefits Are Weak
A higher base salary can distract from weaker benefits that cost you more over time, according to Lauren Young Durbin, founder at Tyche Career Coaching.
“You could actually be worse off with a $95,000 job than an $85,000 one if the higher-paying job comes with bad health insurance, no retirement match, unreliable bonuses or higher work expenses,” she explained.
2. You're Offered Bonuses and Equity That Aren’t Guaranteed
Compensation packages often include bonuses, equity or sign-on incentives that are not guaranteed, repeated or immediate.
Brandon Bramley, founder of The Salary Negotiator L.L.C., stressed that it’s important to understand your total compensation as “the sum of all your monetary take-home earnings, including base salary, performance bonuses, equity and sign-on incentives.”
But be careful counting on bonuses, Durbin warned. A signing bonus is a one-time perk, and “a discretionary bonus can vanish if the company has a bad quarter or decides not to pay it,” she said.
3. You Haven’t Calculated Your True Hourly Pay
If you’re working more than 40 hours a week or constantly “on,” your real hourly rate could be much lower than it appears, Durbin noted. Be sure to include overtime, travel, evening work, weekends and any extra time the job expects, she said.
4. Hidden Job Costs Eat Into Your Paycheck
Expenses tied to the job itself can quickly cancel out a higher salary. For example, a high-deductible health plan without an employer HSA contribution can cost you thousands per year, as could lots of professional travel, Durbin said.
Hidden costs could include “client dinners, after-hours networking, always being available and the stress of a job that takes over your life,” she said.
5. Your Commute or Location Is Draining Value
Where you work can matter just as much as what you earn. “A higher salary in an expensive city might leave you with less money than a lower salary in a more affordable city,” Durbin said.
There’s also the mental and physical wear and tear of a long commute that you need to factor in, especially if that keeps you from being able to do things in your time off.
6. You Didn’t Compare Offers
Many workers accept offers without fully comparing total compensation across opportunities, Bramley said. That makes it easier to miss what you’re giving up.
He urged job seekers to calculate base salary, bonus, equity and any signing bonus for each offer and compare them side by side. This can be done easily in Excel, though many job-offer comparison tools are also available, he said.
7. You Didn’t Negotiate or Research Market Pay
Taking the first offer presented to you without researching market pay can cost you. Bramley warned that the first offer, “is rarely at the top end of the company’s pay range.”
Negotiation could improve components of your compensation, not just base salary, he explained, such as sign-on bonuses, equity, or other benefits.
Before you accept your next offer, take the extra step to calculate your total compensation. It might reveal that the best-paying job isn’t the one you thought.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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