Your entire job compensation consists of not only your salary, but benefits and bonuses as well. Make sure you’re comparing apples to apples when comparing job offers or thinking of leaving your company by closely evaluating the benefits.
The new company might offer the same percent retirement matching just like your current company, for example, but have a crappier, more expensive 401(k) plan. You might be offered health insurance with the same or lower premium, but your out-of-pocket costs under that plan might be higher. The Motley Fool explains:
Say your current employer pays 60% of your $500 monthly insurance premium, leaving you to pay the $200 balance. Even if you’re looking at that same $200 at your next job, your new plan might come with a $35 in-office copay, whereas your old one might have charged just $15. Similarly, that prescription medicine you take each month might cost $50 under your new plan as opposed to $30 under your old one. Over the course of a year, you could wind up spending hundreds of extra dollars on medical costs as you navigate your new insurance coverage.
Take a closer look at the benefits package—perhaps ask the company for the HR handbook—before accepting a job so you can make sure you’re truly moving up to a more rewarding position.
3 Hidden Costs of Switching Jobs | The Motley Fool
Photo by 401(K) 2013.