Imagine this: you are three months away from graduating, and you have five job offers printed out and sitting in front of you on the table. Which one do you pick?
If all else is equal, you pick the highest paying one, right?
Or, do you pick the one that moves you to your dream city?
Obviously, you pick the one with the best signing bonus and company car, right?
It might seem easy, but there is a lot more to consider under the surface.
There are many benefits that might not seem important while you are in school, but could become very important, such as paid time off, parental leave, or hybrid working options.
The purpose of this article is, when you are faced with your next job decision, to help you weigh all the relevant factors and choose the correct position for you.
The article describes some common work benefits you might encounter in a job offer and looks at some factors to consider. These issues may come up when you are a fresh graduate or leaving one job for another.
Fixed vs Unlimited Paid Time Off
A new benefit that has arisen in recent years is “unlimited” Paid Time Off (PTO). I put unlimited in quotes as in many cases, it is simply untrue.
Rather than a specified three or four weeks of vacation per year, some companies offer a seemingly infinite quantity of PTO days, subject to manager approval (this last part is key).
On the surface it seems like you could take off every other week if you wanted to, but instead the average employee ends up taking fewer holidays. This fact may be due to colleague and supervisor pressure to not take holidays during busy times, due to an unhealthy personal commitment to work and an unwillingness to step away, or due to simply forgetting to use them.
Although it may seem counterintuitive, the fixed PTO system may be better for you in the end. With a finite number of days to utilize, you are less likely to forget to use them. You will also likely encounter much less push back from management when you ask to take these days. Many companies also cap the amount of PTO days you can accrue and carry over year-to-year, meaning you lose them if you do not use them. Thus, if you have a fixed supply of PTO days, hopefully you will prioritize your mental health and take time off as necessary.
Fully Remote vs Flexible Work
Another work benefit that is becoming increasingly common (especially post-Covid-19) is fully remote working options. This may be a huge perk for some people, allowing them to live and work in different cities, reduce the time wasted commuting to work, improve work-life balance, and create schedule flexibility.
However, there can be some serious detriments to fully remote working, such as feeling disconnected from your colleagues, superiors, and direct reports. Your home desk and computer set up might differ depending on the stipend your company provides, your current equipment, and your willingness to pay out of pocket for upgrades such as better monitors and a more comfortable desk chair. Finally, the barrier between home and work becomes blurred, as you may find yourself working late hours or weekends since your work computer is always right there.
Now, I am not going to pivot and say everyone should go back to the office full time. Rather, I am a strong proponent of hybrid working. Going into the office anywhere from 2-4 times a week can improve your connections with your peers, managers, and even your direct reports if you have any. Your firm should provide you with a computer, monitors, and a desk, which can be an improvement over a workstation if you currently do not have a good one at home. Finally, timing your office days with special events such as luncheons will improve your network and allow you time to collaborate with others on projects.
Standard vs Overtime Pay
If you are a typical salaried employee, the pay you earn will be about the same regardless of whether you work 40 hours or more per week. In some cases, this means you might work 45 hours one week and then 40 hours the rest of the month. In extreme cases, however, including for management consultants and lawyers, you might find yourself working 60-80 hours per week during a typical week. While some of these careers might have very high base salaries, they are often paid the same amount during a busy week as during a quiet one.
Another option to look out for would be firms that offer overtime pay. Whether it is 1.25x the employee salary or 1.5x, these firms pay overtime for every hour worked over 40 hours per week (subject to certain conditions such as the hours counting towards project work versus general nonbillable hours and reaching a certain threshold during the week). While the pay bump for a 45-hour work week may be insignificant, the bonus gained for working a 60 or 80-hour week can more than make up for a lower base salary. These bonuses gained throughout the year might even lead to a higher overall compensation compared to a job that offers standard pay.
The Bottom Line
During the interview and negotiation phases, make sure to ask as many questions about the potential benefits of the job as possible to gain the clearest picture before you decide.
Other potential benefits you might be offered include government paid parental leave (might be a specified number of weeks, might be a hybrid schedule), medical care options (health, dental, vision, etc.), and of course financial (401K, Pension, Roth IRA, etc.).
Do your research beforehand, ask plenty of questions during the process, and really evaluate the pros and cons of these benefits before you accept a job offer. A little extra work early on to make your decision might just pay off down the road.
Ricky Hollenbach is a Thermal Sciences Associate at Exponent Scientific and Engineering Consulting. He solves problems in the thermal-fluids, heat transfer, aerospace, and turbomachinery fields. He earned his Ph.D. in Mechanical Engineering at Duke University.
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