Benefits
How to Evaluate Your Benefits Package When Starting a New Job
Starting a new job involves a great deal of decision-making — and benefits are often among the most consequential decisions in that process. A compensation package is more than a salary figure. It includes everything of value an employer provides: retirement contributions, paid time off, life insurance, disability coverage, and more. According to a 2023 SHRM survey, 92% of employees say benefits are important to their overall job satisfaction.
Benefits as Part of Total Compensation
Benefits represent a significant portion of total compensation. U.S. civilian workers' total compensation averaged $48.05 per hour, with $15.03 — or 31.3% — allocated to benefits. Two offers with similar salaries may differ considerably in total value when benefits are factored in.
Key Areas to Review
Life Insurance
Many employers offer group life insurance as part of their standard benefits package — and for many employees, employer-provided life insurance is the only coverage they carry. Coverage amounts vary: some employers offer a flat benefit, others provide coverage as a multiple of annual salary. Relevant questions include: What is the amount of employer-provided life insurance? Is supplemental or voluntary life insurance available for purchase? Does coverage extend to a spouse or dependents?
Disability Insurance
Short-term and long-term disability insurance provide income replacement if an employee is unable to work due to illness or injury. Not all employers offer both. Understanding which types are available, what waiting periods apply, and what percentage of income is replaced is relevant to assessing the full package.
Retirement Benefits
Employer-sponsored retirement plans represent a long-term financial component of total compensation. Key questions include: Does the employer offer a retirement plan and what type? Is there an employer match and what are the vesting requirements? When does eligibility begin?
Paid Time Off and Additional Benefits
Understanding the structure of leave policies — including accrual rates, carryover rules, and any waiting periods — is relevant to assessing total value. Employers may also offer supplemental benefits including FSAs, HSAs, employee assistance programs (EAPs), tuition reimbursement, and wellness programs.
Thinking About Total Value
A higher base salary paired with limited benefits may result in lower total compensation than a somewhat lower salary with comprehensive offerings. Consider what equivalent life or disability coverage would cost if purchased independently, and whether benefits begin immediately or after a waiting period.
Asking Questions
It is entirely appropriate to ask an employer's HR department for additional detail about benefits before accepting an offer. Most employers provide a benefits summary or Summary Plan Description (SPD). Reviewing that documentation carefully — and asking clarifying questions — is a reasonable part of the hiring process.
This article is provided for informational purposes only. Atlanta Life Insurance Company does not provide financial planning, tax, or benefits advisory services. Employees are encouraged to consult their HR department, benefits administrator, or a qualified professional for guidance specific to their situation.