Evaluate
your job offers
Take a hard look at the extras
before you switch jobs
Evaluate
your job offers
Take a hard look at the extras
before you switch jobs
by Anne Chalfant
August 27, 1998
Illustration by Malcolm Garris/PhotoDisc
The salary looks tempting. Take a nice vacation, pay off those bills—who wouldn’t enjoy a pocketful of cash?
But compensation experts issue a cautionary note: When considering a job, look beyond the allure of bonuses or higher hourly wages. Consider the value of the employee benefits package. It represents big money—as high as 30 to 50 percent of your salary.
Experts suggest looking at the whole picture. Do you need healthcare coverage that kicks in for you and your family the first day of your employment? Beware—some jobs carry a six-month waiting period for healthcare coverage. Or maybe you plan to go back to school. You could save a lot on tuition if your employer is willing to foot the bill.
Look at the big picture
When evaluating any compensation package, consider it in the context of the overall job, said Charles King, a principal of William M. Mercer Inc., a human resources management consulting firm.
"I’ve seen some real sad cases where people did not do that—where they focused on an hourly rate, nurses included," King said.
To examine the whole picture, put it on paper, King suggests. List all tangibles—like salary, healthcare plan, pension, available shifts, and vacation and sick days. Then, King emphasizes, identify subjective aspects—things that are important to you. List factors—like a deadly commute—that could become a torment over time. This list might include the congeniality of coworkers, workplace atmosphere, and potential for promotion.
Mark your list with a "+" for positive aspects, a "++" for very attractive factors, a "0" for neutral factors, an "x" for negatives, and an "x-" for things that really worry you. When you’re done, you’ll have a better overall picture to consider.
Navigating retirement plans
Retirement plans can be especially confusing. But no matter what age job-shopper you are, you need to investigate whether there is one and how it works. "One thing I like to remind nurses about is a pension," King said.
Retirement benefits should take an especially high priority for mid-lifers. "If I were a 45-year-old nurse today, there would be only one agenda on my mind. That’s retirement," said Michael Weerts, EdD, director of compensation and benefits at Good Samaritan Hospital in Los Angeles. "I’d be projecting what I would need to have the same spending power. I would weigh pros and cons of benefit plans, stability of that hospital, and look at the pros and cons of going to work for the government."
King says to look at whether the retirement plan is what he terms a "completely portable defined-contribution plan," especially if you think you won’t be in this job forever. Defined-contribution means that all money contributed by the employer can follow the employee to a new job. "That’s real money. I get to take that with me," King said. Other plans may require a certain number of years of service before 100 percent of the employer contributions belong to you.
Pay for performance
Pay-for-performance programs are another thing some nurses have to factor in. Under these programs, managed care organizations offer incentives to nurses who help reduce costs, increase profits, or help boost patient satisfaction. For example, some nurse managers at an HMO might get a year-end bonus if they meet their budget goals.
But nurses should take a hard look at "any incentive pay system that ties nurse salaries to employers’ set profit targets," said Anna Gilmore-Hall, RN, director of labor relations and workplace advocacy for the American Nurses Association.
The ANA cautions nurses to consider ethical questions surrounding individual pay-for-performance programs. "Some are good and some are not," Gilmore-Hall said.
Here tomorrow?
Of course, comparing one set of benefits with another becomes meaningless if the job you accept won’t be there tomorrow. Experts advise job seekers to research the direction a potential employer may be heading.
Consider whether the hospital or clinic is "looking at becoming part of a huge system. That sometimes leads to short-staffing, layoffs, and replacement of RNs with other kinds of workers," Gilmore-Hall said. "You want to try to pick a hospital that’s going to be around next year."