Every Tuesday, human resources experts answer your questions. This week, advice from France Dufresne.
“I got a job offer from a recruiter offering me a $10,000 salary jump. Such an increase would help me absorb the recent increase in my mortgage payments. But is it worth it? »
What a pleasure to receive such an offer even though you are not actively looking for a job! A $10,000 pay raise is undoubtedly very attractive. However, a job is made up of a myriad of elements that are not just limited to money! In addition to the nature of the tasks, here are some of the elements to consider so that your decision is as advantageous in the long term as it is in the short term.
Total compensation includes direct compensation, which includes base salary, bonuses or commissions, as well as indirect compensation.
Indirect compensation means anything offered by your organization that provides you with income, such as a pension plan, stock purchase plan, profit-sharing plan, in addition to paid vacation and time off. Indirect compensation also includes benefits that save you money, such as group insurance, an expense allowance, a company-provided cell phone or a company car.
Perks refer to special bonuses and “gifts” your employer may give you. These could include company branded clothing, gift cards, tickets to sporting events, shows and conferences. Specific benefits may also include internal activities, such as meals offered among colleagues for various celebrations or team activities.
Before accepting a job offer, remember to consider future working conditions. For example, the flexibility of the company in terms of the place of work, the number of hours required, the workload and the pressure attached to it, as well as the resources that will be made available to you.
The nature of the work is also to be considered. How do you appreciate the responsibilities given to you? Decision-making leeway that falls to you?
Think about the aspects of your current job that you like the most and the areas that could be improved to prepare your questions to the recruiter.
The size of the organization and department you will be part of, the age of leaders, the culture of promotion from within, the importance placed on professional development and employee recognition, and opportunities for career movement Sides are all factors that will influence your career progression. Think about it before making the jump to another employer.
It is also relevant to consider the team with which you will be called upon to collaborate or lead. If possible, meet with some of your prospective colleagues to assess the work climate, subcultures, team skills, and even the management style of your future boss.
Finally, research the company offering you the job: do their mission and values align with yours? What about its reputation and stability? Ask yourself about the location of the head office and the impact on the decisions made.
Each person will place a different value on the various elements presented here. An informed decision is based on a careful evaluation of all the components of the overall compensation of your current position compared to those of the position offered to you, and that goes well beyond salary!
As an employer, make sure you know what your organization offers its employees and, most importantly, communicate this “value proposition” effectively.
A recent study1 shows that 62% of employees who have an unfavorable opinion of their overall compensation say they will leave in exchange for a salary increase of 5% or less!
Clearly present opportunities for advancement and foster employee engagement, including allowing more flexibility at work and offering responsibilities that match everyone’s interests, and increase opportunities for recognition. Create diverse and inclusive environments where employees are treated with respect and feel valued. The experience that employees have every day at work is now more than ever what keeps them loyal.
If you want to submit a counter-proposal, ask yourself about the potential of this employee and her level of commitment. Avoid presenting a counter-proposal to an employee whose sole objective is to increase their salary. And be creative with your counter-proposal; also consider including non-monetary compensation packages!