Bills are piling up, rent is due, prices are rising, and you don't have a job. It's hard to argue with anyone unemployed taking the first position that comes along. But that job you get offered may not be the best one, even for young Canadians facing the highest unemployment rate in decades. There's one major factor to consider when job hunting: total compensation, not just base pay.
Understanding Total Compensation
Statistics Canada reports that about 64 per cent of Canadians aged 12 and older have private supplementary health insurance, typically paid for by employers. Some individuals purchase their own private coverage, and that should also factor into calculations. Basic benefits often include dental care, coverage for services such as braces, physiotherapy, other health services, basic disability and life insurance, and a pension program. These can add thousands of dollars to your total compensation.
The Value of Benefits
Jennifer Foubert, head of product and growth for group benefits at Manulife Financial Corp., emphasizes the concept of "benefits literacy." She explains that a comprehensive benefits package can be worth over several thousand dollars per year in real savings for employees. An increasing area of coverage is fertility procedures, which can cost $20,000 per round. Tailoring benefits to employees has become important because not everyone has the same coverage needs, including health issues specific to women.
Foubert notes that benefits have moved from being at the back of the offer to a front-page decision factor. Some benefits can be negotiated, such as the waiting period for benefits to kick in upon hiring.
Health-Care Spending Accounts
Karen Klein, co-founder and chief executive of HealthCasa Ltd., which operates like a mobile health-care clinic, says health-care spending accounts (HCSAs) are becoming more popular. These accounts give employees flexibility over how they spend their benefit dollars. However, her company estimates that employees only use between 30 per cent and 60 per cent of their total HCSA allotments. "The big ones are obviously the dental care and prescription drugs, but then you have all the other paramedical services like physio, massage, and mental health services, and they all add up," Klein says.
In a tough economy, job seekers might be tempted to accept the first offer, but considering total compensation can lead to better long-term financial outcomes. Benefits such as pension plans, health insurance, and flexible spending accounts can significantly enhance overall earnings and security.
