Show me the money benefits!
It may not roll off the tongue as nicely as Jerry Maguire’s famous catchphrase, but it seems to be workers’ guiding principle when choosing jobs today.
Work perks are proving invaluable, according to a new study from the American Institute of CPAs (AICPA). So much so, eight in 10 people would choose a lower paying job with benefits over an identical position that offered 30 percent higher pay but no benefits.
In particular, employees are looking for gigs that offer a 401k match or health insurance.
Over half of survey respondents believe a 401k match or health insurance would help them reach their financial goals. Around a third think paid time off or a pension would be helpful. A lesser number cited flexible working hours and working remotely.
Truth be told, employees are overinflating the value of these perks.
When asked to estimate how much of their total compensation is represented by benefits, on average, workers said 40 percent. But the true figure is more along the lines of 31.7 percent, per the Bureau of Labor Statistics.
“A robust benefits package is often a large chunk of total compensation, but it’s the employees’ job to make sure they’re taking advantage of it to improve their financial positions and quality of life,” Greg Anton, chairman of the AICPA’s National CPA Financial Literacy Commission, said in a statement.
It’s something a surprising number of workers fail to do. What’s even more strange is, they’re aware. Just three in 10 of those surveyed are very confident they’re using workplace benefits to their fullest potential.
“Despite overestimating the value of their benefits as part of their total compensation, it is concerning that Americans are not taking full advantage of them,” added Anton. “Imagine how employees would react if they were not 100 percent confident they could get to all the money in their paycheck. Leaving benefits underutilized should be treated the same way. Americans need to take time to truly understand their benefits and make sure they’re not leaving any money on the table.”
Jessa Claeys is a writer, editor and graphic designer.
