With the increase in good transport links, the options to work from home or satellite offices and people’s general acceptance of moving across counties or indeed countries for the right role, packages have become more and more interesting to both attract and retain the right people. So what is in the remuneration package and how do you value it?
Salary – the key thing that everyone knows. It benchmarks where you were to how far you’ve come. It gives you a feeling of where you fit within your peer group and it opens physical doors by way of how much you can borrow as a mortgage. You know what your outgoings are. You know which are essential and which are nice to haves in your monthly spending and you know what you need, can and will accept as a minimum basic salary
Bonus – lots of roles are now being offered with a flexible bonus on top. This can be as much as 20% of your salary, would typically be paid annually and will be awarded against the achievement of personal and company objectives. Annual bonuses are great; they can pay for a holiday, a DIY project, a special event or even a car. If you are living comfortably within your salary a lump sum is a glorious treat
Commission – if your role generates any type of revenue for the Company you may be entitled to commissionable pay. This will be awarded against a revenue generation target and is typically paid monthly or quarterly. It is a great incentive to do well and can create ongoing feelings of high self-esteem when you make commission month on month on month. This can easily increase your ‘normal’ monthly income, giving you a higher standard of living and can be used in conjunction with mortgage applications when it is regular and consistent
Car or Car Allowance – a company car is just that. A physical vehicle, often entirely of the Company’s choosing (even down to the colour) and you will be taxed on it’s value as it is a perk. If you are covering a lot of business miles this is a great benefit to have. The car allowance on the other hand is a monthly amount awarded dependant on your salary grade and will arrive with your salary payment (also taxed). You don’t have to prove you are spending this money on a car but you will be expected to drive a vehicle that is appropriate to your role and that falls within certain company parameters. This is a better option than the physical car when you do less business miles
Home Office – on work from home roles your office expenses will be covered; broadband and phone plus a percentage of your domestic heating and lighting bills (worked out on square meterage of the office versus square meterage of your house). The real benefits of working from home though are in the huge amount of time and money you gain by not having a commute. There are also savings on lunches out and dry-cleaning
Shares and Stock Options – some companies will gift you shares on joining, others will give you options to buy stock at reduced rates on an annual basis to a maximum percentage of your salary. This gives you a real vested interest in the success of your company and even in fluctuating markets, over time most shares do increase in value. There will probably be stipulations as to how and when you can sell your stock
Healthcare – a lot of companies offer private health for their employees. Some include your family too; spouse and children. Those that don’t can normally offer you the option to add your family at a reduced rate
Gym membership – large companies can have a gym onsite which you can use at similar times to that of regular gyms. Others have deals set up with a local gym that their employees get better monthly membership fees. Perfect if you either like to keep fit, or have been intending to start. There is also a huge chance that your colleagues will be using the gym too making it easier to find training buddies
Pension – contributory, meaning the company will also pay into your plan so this has a real financial value to you or non-contributory where your input is your own
Holiday entitlement – if you are in Europe you will get at least four weeks plus the standard public holidays. Some companies start you on five weeks, others increase the amount of your entitlement dependant on length of service up to a maximum of six or seven weeks. If you have a flexible benefits package you might be able to buy more days over and above the company standard
Other things you might get include dental cover, free medical wellness checks, eye tests, laptops and mobile phones. When you are considering your options and assessing the remuneration offered it is worth sitting down with a pad and pen and calculating the worth to you of all of these things. Gym membership might not appeal to everyone but if you are someone that already pays for that you can deduct £X from your outgoings straightaway. If you are going to be working from home and you have typically been office based and dropped into your local sandwich shop you might be saving another £100 per month. Packages are quite complex and have various elements, although it is easy to know if the basic salary is what you wanted the rest can also have a huge monetary value in both income and savings. Take some time, pour over the offer and work out just how good this is for you!
For help with the interview process or making the transition from where you are to where you want to be please contact one of our Consultant Coaches at email@example.com