Chapter 2. Accepting employment and what to watch for

Accepting employment after graduation is one of the most exciting accomplishments a young person can experience, especially when it is the opportunity of a lifetime. Most companies offer basic benefit packages to their employees, but many are now padding job offers added benefits to recruit and retain valuable employees. Each company provides different benefits, so make sure you have a full information before making decisions.

 

How to

It is important to research companies you want to join to ensure compatibility with their values, missions, and visions. Also, you need to seek companies that offer employment benefits to help to build a solid financial foundation. As you negotiate salaries, you need to factor in several items. Some of these include pre-tax benefits, company matching in health, life, accidental, and disability insurance cost, stocks and retirement plans, paid vacation, sick time, maternity and paternity leave, parking, and of course annual gross income. 

It is overwhelming to cover every detail in your employment package, but there are a few non-negotiable items that you need to understand fully:

 

 

1. Health and medical insurance

• • Depending on the size of the company you are interested in joining, health insurance is a critical component that should have on your non-negotiable item list
  • Many companies will offer multiple insurance plans for you to choose from, while others help match the cost of such insurance
  • Some companies offer a company self-insured plan
  • Take the time to understand all insurance benefits

2. Retirement plans

• • It is common for companies to offer the 401K pre-tax retirement plan or other supplemental plans
  • Many companies match the employee's contribution to encourage participation and to help with long-term retention of workers
  • Take time to understand these retirement plans, especially the percentage of your contribution and the matching process of companies contribution
    • Remember that any pre-tax investment will help reduce your tax liability as you invest a portion of your gross income
      • The pre-tax investment may help you to you enjoy a higher amount of net take-home income

3. Potential advancement in your career

• • Becoming stagnant on your job will cause you to lose interest
    • Then, you may end up making decisions that could redirect or even destroy your goals in life
  • Take your time to understand the structure of your employment and the possible promotions or advancements you can pursue in your job
    • Employees who change positions more often do so in search of advancement in their careers, realizing other opportunities or for financial reasons

4. Vacation and sick leave

• • Just knowing that you can take a full week off to go to the beach without having to suffer financially is a huge benefit for some of you
  • The possibility of taking sick time leave or a family leave to attend to an emergency without the fear of losing your job constitute a precious benefit of employment

 

Find a job that you love and loves you back. Discover a company that rewards you for your hard work, loyalty, and commitment. It is easier said than done, but you have to start somewhere and focus on getting what you deserve in your life. 

 

Practice

Now you know the essential components of an employment package. Think of paying it forward and discuss your experience with a friend or a family member.

 

Congratulations! You can move on to Chapter 3. Ten principles you must know in financial literacy.

To review the full module on After graduation, click here.