There are 11.3 million open jobs in the U.S., nearly two jobs for every American seeking work, according to recently released federal data. That rate is nearly the highest on record as the number of available jobs per worker has sharply risen in recent months. Many of the resignations are coming from people who were forced to work remotely and decided they liked it so much that, when they were told to report back to the office, they decided to look for another remote opportunity instead. Workers now have the opportunity to reevaluate what they want from a job, and they have the chance to negotiate to get it. Companies are becoming creative with incentives and benefits to lure workers. A survey found that workplace flexibility, mental health support, meaningful work and career advancement topped the list of “wants” for changing jobs.
More clients have come to us to help them understand various benefits and the value of them that are offered by prospective employers.
Health Care Plans – Important to understand the type of health care plan that is offered: There are four main types of managed health care plans: health maintenance organization (HMO), preferred provider organization (PPO), point of service (POS), and exclusive provider organization (EPO) in which case, you should make sure the doctors you prefer are part of the network. You could also be offered a Health Savings Account (HSA) with always has a high deductible plan and allows you to save and pay for costs tax-deferred. Make sure you understand the coverage each offers and how it covers your situation. And don’t forget to look at the details of the dental and visions plans, if offered.
Flexible Spending Accounts (FSA) is another option that an employer can offer, but very different from a Health care plan. It is an account that allows you to pay pre-tax for certain out-of-pocket Health Care and Dependent Care costs. For 2022 the maximum you can contribute is $2,850 in a Health Care FSA and for Dependent Care FSA $5,000 per household if married filing jointly. Make sure you estimate your actual annual costs before enrolling, as it is a Use-it or Loose-it account. You must use it before the end of the year with limited rollover ways, if any.
Group Insurance may be offered. Life insurance, except for the high management positions, are usually term policies that are not portable (able to be taken with you should you leave the company). Disability insurance can be another great benefit.
Retirement plans can vary: 401K plans or 403b, SEP-IRAs or Profit-Sharing Plans. You contribute a percentage of your earnings before tax and sometimes it is also possible after-tax (the Roth option); your employer might match up to your contribution. If you are fortunate, your employer may have a profit-sharing plan in the form of a “pension” and possibly stock options or an employee stock purchase plan where you can buy shares in the company at a reduced price.
Other Benefits: child care; company car or transit check; paid family leave and paid financial planning. Some companies, like Google, Cisco Systems and Patagonia, now offer on-site childcare, physical therapy, and subsidized housecleaning services.
When evaluating employment benefits packages try to put a dollar value for each benefit when comparing jobs. Some benefits are more valuable than a higher salary. Oh, and let’s not forget the flexibility of working from home which has become invaluable to many.
We hope your summer is relaxing and rejuvenating!
Anja & Clare
