The importance of global compensation
Did you know that employee benefits can constitute up to 35% of your global compensation? It’s important to take all these factors into account when comparing job offers.
Global compensation is the sum of your direct and indirect compensation. Direct compensation includes your salary and any bonus your employer might pay you. Indirect compensation is the range of employee benefits that your employer offers in addition to your salary.
What is included in global compensation?
If you have a voluntary pension plan, for example, and you contribute $2,000 per year and your employer matches, you will obviously not see this amount in your salary at the end of the year. Nevertheless, it’s important to take it into account, because when you retire, these additional yearly amounts could make all the difference. After 10 years, it adds up to an additional $20,000 plus interest for your retirement thanks to your employer’s share.
Group insurance plan
To be entitled to your work’s group insurance plan, you must, for example, pay $20 per paycheque for this benefit, and the employer pays $30. So you pay $240 per year while the employer pays $360 to protect you from the unexpected and provide you access to many health services. In other words, over half of your group insurance cost is paid for by the company, a key benefit for many employees.
Personal (flex) days
Once again, this is a monetary benefit that is not offered at all companies, and it could make the difference. You can use these leave days at your discretion and avoid using your vacation days if you’re sick or have an appointment.
The government provides for a minimum of 2 to 3 weeks of vacation per year, depending on your number of years at the company. Some companies provide a more generous holiday schedule—an added financial value. You receive the same yearly salary and can spend more free time on hobbies, vacation and family.
Share purchase plan
If you work for a large-scale company listed on the stock exchange, you may have the option of buying its shares. If you were to contribute $30 per pay period, the employer could provide additional share value for each contribution you make. If it matches 50% of your contribution, or $15 per pay period, you would end up with $390 of additional shares per year. Over the years, when the shares appreciate in value, you could cash out this amount and benefit from this portion paid by your employer.
Benefits at iA
Our employees are fortunate to enjoy all the benefits mentioned above, and in addition, they also have access to a company-subsidized cafeteria and parking. Great benefits that save them from having to bring in lunches or look for parking at exorbitant prices every day. In some offices, our employees also have free gym access, which saves around $1,000 per year, and given that it’s onsite, also provides better work-life balance. And as an insurance company, all our employees have access to discounted life, auto and home insurance and savings products. These discounts can also go a long way.
It’s important for you to consider the financial value of the entire benefits package provided by your employer. If you have two job offers on the table, for example, one at $60,000 without benefits, and another at $55,000 with a wide variety of benefits, take the time to consider the global compensation. In the end, the highest salary is not always the most beneficial overall. Feel free to question the recruitment advisor about this during the interview or after. You can also request brochures on the company’s benefits to learn more about them. And if you're job hunting, we have a number of open positions. Apply now.
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