What to consider beyond salary when accepting a job offer

Before saying yes to a new job, it’s crucial to look beyond the salary figure to ensure that you fully understand the broader financial implications of the position, and to satisfy yourself that the new role aligns with your long-term goals. Here’s your checklist to carefully consider:

Nature of the employment contract: Firstly, ensure the offer and employment contract are presented in writing. Clarify if the role is permanent, fixed-term, or temporary, and distinguish whether the salary stated is basic or cost-to-company. Ideally, request a detailed breakdown of salary, deductions, and net take-home pay so that you can make a factual assessment of the offer.

Retirement fund benefits: Determine if the employer offers pension, provident, or retirement annuity options, and understand which investment company manages the fund, available investment strategies, your contribution levels, employer contributions, the administrative platform, and associated fees.

Group risk cover: Establish if group life and disability cover are provided, usually at lower costs than individual cover. Check if life cover is offered as a multiple of your annual salary and verify if income protection covers both temporary and permanent disabilities. Additionally, enquire about supplementary benefits like dread disease and funeral cover, and be sure to understand any waiting periods that may apply.

Healthcare cover: Confirm if medical aid membership is mandatory, whether you must join a designated scheme, and if the scheme is open or employer-specific. Clarify any medical aid subsidies, applicable plan options, and whether subsidies extend into retirement.Leave policy: Review annual leave policies and whether any timing restrictions apply. Additionally, be sure to clarify maternity, paternity, study, and compassionate leave entitlements, comparing these against industry standards – and be sure to understand the company’s stance on leave and employee wellness.

Incentives and bonuses: Request written clarity on incentives, commissions, or bonuses, including calculation methods and payment schedules. You will also want to confirm overtime compensation rates, recording procedures, and payment frequency.

Job-related expenses: Gain clear information on reimbursements for work-related cell phone use, travel costs, equipment, travel allowances, and out-of-town expenditures. Importantly, be sure to confirm responsibility for software upgrades and licensing fees, as these can be very expensive.

Education and training support: Check if the employer supports further education financially, whether partially or fully, related to your role. Explore internal career development opportunities and clearly discuss your future study options and funding possibilities.

Office location and travel costs: Consider the office's proximity to your home and the implications for travel expenses. Evaluate potential additional childcare arrangements, employee parking availability, and whether relocation would be beneficial financially, given your unique set of circumstances.

Flexibility and work-from-home options: Gauge the employer’s flexibility regarding working hours and remote work. Be sure to understand the company policies for personal emergencies like caring for sick family members, and ascertain if the culture emphasises trust over strict supervision.

Company culture and reputation: Research thoroughly into the company’s culture, staff retention, market reputation, growth strategies, and diversity initiatives, and ensure that these align with your personal values and career aspirations.

Negotiation strategy: Research market-related salary packages to assess the true value of your skills and experience. This will help you to clearly understand and confidently present your worth, qualifications, and the job requirements, approaching negotiations with clarity on acceptable terms. 

Making a thorough and informed evaluation will not only protect your financial well-being but also empower you to make decisions that support long-term career satisfaction, personal growth, and lifestyle balance. Scrutinising all aspects of a job offer, from benefits and working conditions to career development opportunities, will help you step into your new role with clarity and confidence.

* Tapfuma is a Certified Financial Planner professional at Crue Invest.

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