Calculating your true compensation??

[garrettwc]

How does one go about doing this when comparing two different jobs?

The salary part is easy, you just compare the raw dollars. But how do you calculate the value of the intangibles like healthcare and the like?

[BozemanMT]

I'm sure there are specific tools on the web, but for me it comes down to a couple things.

1.  compare the 401k's,  where do they match, what %'s and who's funds do they use?  (like say using well fargo is a big negative for me)

2.  compare the health care
how much do you have to pay per paycheck?
what's the deductible
how do they pay on drugs?
what do they pay for co-pays?
is it an 80/20, 90/10, 70/30 plan?
is it a HMO (negative!!! in my book anyway)
dental care:  I just look for how much they pay for year.  Anything over 1000 is good.  $2000 is the best I've ever seen.

3.  Vacation time/ PTO time/ Holidays.  how many days for each, how do they compare, how are they earned?

the rest is piddly crap to me anyway.

[HankB]

If the two jobs are in different areas, cost of living is a vital ingredient - $100K in Montour, Iowa or Terlingua, Texas will likely support a better lifestyle than the same pay in LA or Manhattan.

Health care is more of a question mark, and depends greatly on whether or not you have dependents.

Stock options? Remember, until you exercise them and have the cash in hand, they're only paper.

Look at things like retirement plans, 401k, etc. Beware of plans that put 100% of your contributions in company stock and do NOT allow for diversification.

If the jobs you're considering are at all comparable - ask yourself which offers better job security, and where would you LIKE to work?

[Art Eatman]

"Beware of plans that put 100% of your contributions in company stock and do NOT allow for diversification."

Amen.  How long are you likely to be employed with the company; is the company long-term viable, and can you get your money out if/when you leave.

If it's equal pay, and local costs of housing are greatly better at the new location, other "bennies" may well be much less important.  If, for instance, you go from an area of $2,000/mo rent to $600/mo rent, that's a good chunk for you to save and/or invest on your own brainwork.

Art

[CAnnoneer]

True compensation? Gains minus liabilities. Often, higher gains can only be secured at the cost of higher liabilities. Be sure that the change makes the balance increase in the positive direction.

As pointed out above, beware of "fake money". Options, stocks, and promises can evaporate overnight. Insured real estate will not.

The keys to financial success are removal of the emotional component, and adequate risk management.

[TarpleyG]

Must be nice to worry about such things.  Me?  I take what I can get and STFU.  Good for you if you have a choice.

Greg

[garrettwc]

Thanks everyone. Some good insight that gives me a direction to go with my calculations.

Don't have any offers yet, but the writing is on the wall where I am. It's to the point that I need to seriously explore other options because the return on investment here is practically nil. I just wanted some ideas on what to consider so that I don't end up with a "paper deal" that's really worse than what I have.

Must be nice to worry about such things.  Me?  I take what I can get and STFU.  Good for you if you have a choice.

BTDT Tarpley. The trouble is, after a while they expect you to do that all the time, and you get taken advantage of. You always have a choice. Sometimes the choice is hard, but you have to determine if it's worth it or not.

[TaxPhd]

True compensation? Gains minus liabilities.

Did you mean to say Gains minus expenes?  Or maybe Revenues minus expenses (since the question was about compensation, which is not a gain)?  Gains minus liabilities is kind of meaningless.




Scott

[CAnnoneer]

Perhaps revenue minus liabilities is more accurate. Expenses is not sufficiently comprehensive. A loan installment is hardly an expense but certainly a liability and so a drain on the bottom line.