Are you making the most of your employment package?

I’ve written a few posts / articles about salaries and employment packages in recent months and how to maximise those and shining a light on some of the ‘forgotten’ about benefits and value etc. This is all good and well but how effectively are you using your package if at all? You could have the most extensive package in the world – adding loads of value to your package away from just your base salary. But if you don’t make the most of that package then that value is completely wasted.

First things first – what’s included in your employment package?

This should be relatively straightforward if you are looking to change roles or have recently made the jump. You should have emails / correspondence with the business and / or recruiter detailing what’s included in your package – you may also get a handbook / welcome brochure. Once you have the details of what’s included you can move on to the next stage.

If you have been with your current employer for a while then you may not have all the details to hand / may have to look a bit harder to find them. Depending on the business you are working for this will differ – however there may be details on their internal systems – employee handbooks, links to pages / documents etc. If there is no centralised system you can ask around your colleagues / line manager to see if they can share any information. If you are really struggling then a quick email to HR asking for a copy of the employee handbook / benefits package should get you what you need.

You know what’s included in your package – what can you use?

Again, there is massive variation in what companies offer / include in their employment packages; so its important that you fully understand what you are entitled to / have access to and then how you use it. Some benefits may only be available to certain seniority levels, others may have limits on them, some may not be applicable to you at all.

The key is to identify which benefits, perks or policies would be useful to you / would add value to you. You will find that not all benefits will be of use to everyone. For example – childcare vouchers would not be of benefit to someone who doesn’t have kids. Once you have your list of perks / benefits you need to work through it and figure out what your entitled to, what would be of benefit to you and how likely you are to use it. For example – discounted gym memberships – if you can get a membership for ￡25pm through work and you are paying ￡50pm now – then it’s a worthwhile benefit. If you don’t have a current gym membership – then the ￡25pm is costing you money you may not have otherwise spent.

Also, don’t discount anything at face value. There may be benefits that are not immediately of value to you but could be of value in future or now but for family. For example – cycle to work scheme – you may not need a new bike right now – but if you are looking to buy a new bike in the next year it may be worth investigating. Or if someone in your immediately family is looking to buy a bike it may be worth considering. The same came be said of money off vouchers – no value if you don’t use them – but if you are planning a purchase and you can get extra money off through work – why not use it.

NOW USE IT!

So you have identified what your entitled to. You have identified what you may or may not use. Now its time to use it. Depending on the different benefits and different process’ companies have in place you will need to research how you access whatever it is you want to use. You might have been enrolled into things automatically – private healthcare for example – so double check. Anything else you want to use you may need to speak to HR or your manager to access them.

Whatever you have decided you want to use start accessing it or make a start on using it by contacting the relevant people.

Benefits to be aware of / look out for –

Private Healthcare – Many companies now offer private healthcare as part of your package. Its worth checking this out as they can differ and vary quite a bit. Some may offer private treatment / faster access for diagnostics – useful if you do need such things. Others may offer you the opportunity to add family members – also something to consider depending on your circumstances. Some can offer money off vouchers / rewards for living a healthy life style. Check you have been enrolled if you are entitled and get a full list of benefits for the scheme you have access to.

Company car / scheme / allowance – Allowance is easy – paid directly along with salary – just check you are being paid correctly and are receiving everything you are entitled to. Company cars and schemes can be hugely beneficial depending on your circumstances. If you need / want a new car then speak to whoever manages the company car program and find out what the options are. Some may provide a physical car – check on the tax implications of this. Others may be more of a club / scheme anyone can opt into. These will cost you money from your pay packet but may be a better deal than what you can get as an individual. As always – use common sense and don’t use something that is not going to add value. If you don’t need or want a new car then there’s no point using a company car as its costs rather than adds value.

Pensions – Every company should now offer a workplace pension – with total contributions of 8% (5% employee / 3% employer for England) (4% employee and employer for Scotland). Some companies offer different pension options. Some will match your contributions up to a certain level, other have different fixed amounts. The whole point here is to look at what’s on offer and maximise your benefit from it – whilst balancing your current needs. Even if you are on a workplace scheme – you can always contribute more yourself without your employer adding more. With pensions I would highly recommend doing research and speaking to a pension advisor to make sure you are doing the right thing.

Sponsored education / professional development – Different options here and it also depends on your own circumstances. If you want to take on a master’s degree then check to see if your employer will sponsor the course. Want to be trained up on the latest software? – check to see if your employer will offer this to you. As always there is plenty of value to be found here but keep in mind – its only valuable if you use it / will be of benefit to you AND there is a case within the business for them to pay for that training.

Perks – This could be all sorts of different things – vouchers, discounts, memberships etc etc. As always – find out what’s available and see if anything would be suitable for you.

Bonuses – Some companies have them, others don’t; those that do can have all kinds of ways of administering them. If you have access to a bonus – what do you have to do to access it.

Others – Every company is different in terms of what is offered / included in your employment package – so its important you follow the steps above to identify what you could be entitled to and then what you can use.

Conclusion

We all want to be paid well and most want to be paid more. There is a huge amount of value to be gained through your employment package if you use it well. But remember one thing – it is the responsibility of the business to offer an attractive employment package: but it is your responsibility as an employee to make the most of it. ?

Side – Note

There are all kinds of ways you can use your package / salary to boost your income or save money on your day-to-day spending. You can do a whole host of things – both within your employment package or even by altering your pension contributions and other ‘tax benefits’. However, it is important to do your research and understand how changes would impact on your take home pay. For example – increasing your pension contributions saves you money on your tax bill and you will have more to spend later in life but you will take a cut on your current take home. Always do your research and get independent advice if you think you need it.