Whether you are looking for a first job or want to make a mid-career change, remember that benefits are an essential part of your overall compensation.
When you’re offered a job, your primary concern may be negotiating a competitive base salary, but that’s not the only thing you should be concerned about. According to a 2011 study by Mercer Corporation for the Ontario Chamber of Commerce, good benefits and retirement plans can add up to 25% to your paycheck.
Typically, your job posting will include a summary of the benefits plan, but you’ll need more information to assess its actual value.
Here are some questions you might ask before signing an employment contract:
1. What life and health benefits are offered?
A life and health benefit plan will likely include:
- Group life insurance.
- Accident insurance.
- Health insurance (including drug and paramedical services).
- Dental insurance.
- Short and long-term disability insurance.
Duration. But the problems are in the details. How many times your salary is your group life insurance? Does dental insurance include orthodontic care? What percentage of your salary does long-term disability insurance replace?
2. What is the waiting period before the guarantees come into effect?
If a group plan already covers you and you change employers, you may have to wait three to six months before you are eligible for the group benefits plan of your new employer. It may be challenging to obtain short-term individual or family coverage during this time. If your new employer does not offer you immediate membership in their plan, in some cases, you may be able to negotiate your eligibility, especially if you have a lot of experience.
3. How much do I need to pay?
A group benefits plan is more valuable if the employer pays the premiums. Find out the number of contributions you will have to pay (if applicable) and which will be deducted from your pay. If your spouse’s employer’s plan also covers you, your employer may allow you to opt out of their plan.
4. What are the deductibles, employee co-payments and maximum benefits?
Ask about deductibles, employee co-payments and maximum benefits. The deductible is the amount you have to pay in a year (or any other period) before your employer starts reimbursing your expenses. The co-payment is the portion of each bill submitted that you pay (e.g., your employer pays 80%, and you pay 20%). The maximum benefit is the total lump sum the plan will pay in one year (e.g., $500 for physiotherapy) or your lifetime.
5. Is an Employee Assistance Program (EAP) offered?
An EAP will allow you to obtain a whole series of crisis management services for you and your family. Typically, EAP providers provide you with a 24-hour, seven-day-a-week hotline through which a trained responder will identify your problem and connect you with a professional, such as a psychologist or a family or financial advisor. You may also be referred to community resources if you need long-term help.
