Benefits a critical part of job offer

Pensions, health insurance and other employment benefits have become a hot national topic. Their rising costs have moved them to the top of employers' expense considerations.

When looking for a position, job seekers typically place how much a job pays at the top of their want list. They often pursue only the highest-paying employers. But the benefit compensation issues can affect their total income and overall quality of life. Not considering them can be a big mistake.

The available benefit package should be a significant factor in whether the position is the one you select. If you have a family, the benefits available to your spouse or family should be considered when making a decision. The question should be asked, "How would the benefit program affect two people or a family?"

Health insurance is one benefit that should never be overlooked. Because of the increasing cost of health insurance, the expense is more frequently being shared between employer and employee. Family coverage is increasingly being passed on to the employee.

A single major sickness of the working individual or a family member could wipe out all the savings of an individual or a family and add a load of debt. And a number of smaller health-altering events could have a significant financial impact on lifestyle.

A young healthy single individual may be able to get away with not having health insurance. Employees with families and those over 40 should think twice about taking a job without it.

For those who have the option offered by an employer and to reduce monthly health insurance premiums, a health savings account may be a better alternative than the higher-cost regular insurance.

Another important benefit is a retirement program. The earlier a retirement program is started the better. Utilizing the benefit from the beginning of employment may allow for early retirement. A good program may even allow for a wonderful lifestyle in retirement. Not having one may mean having to work in the time of life most would prefer to spend on the golf course.

If a program is not available through an employer, the employee should, at the very least, put money aside in an individual retirement account.

Another benefit often overlooked is disability insurance. Many jobs offer this, but do not pay the premiums. Under the insurance, in case of injury or sickness, an employee gets compensation while out of work. Those with a family should carefully consider taking out a policy.

Most employers offer life insurance through a health insurance program. Unfortunately, the amount of a payout is generally rather low. Employees with a family should consider increasing the amount to a level that would leave their family comfortable in case of the employee's premature death. Term insurance is usually the most reasonable.

Higher initial salaries may be what attract employees to a company. However, in the long run, the lack of opportunity for advancement or small raises may mean less income than another employer would have provided at a smaller initial salary.

Check how employers promote and reimburse their workers before you apply. Those that offer the best opportunity to current employees likely will give the same to incoming ones.

So, when considering a new job, find out about all compensation and benefits. What may appear to be the best opportunity may not be in the long run.

M.B. Owens is president of a career consulting company. He can be reached at usajoblocator1@yahoo.com.

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