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I would think it only really makes sense to compare total compensation (salary + bonus + benefits) when comparing jobs.

frobozz 16y ago
Yes, but how do you value a bonus, if you don't know how much it is, or whether you'll get it? A salary of 50K is a salary of 50K, you get 50K over a year. How does that compare to a salary of 45K + bonus? Is it more, less, or the same?
- bbarthel 16y ago
  My basic formula runs like this - when I'm negotiating, I cite my previous salary as everything I earned - salary + all bonuses plus any other perks I can cite. When I'm comparing, I use only money I'm guaranteed: salary plus any guaranteed or performance bonuses I am confident I can hit (with targets in writing as part of my job agreement). Bonuses that are based on nomination or any other "approval" type process are really just too risky for me to consider as part of my overall compensation package. They will only factor if all else is basically equal.
sangaya 16y ago
I recently left a job that paid lower salaries and tried to focus on total compensation through bonus + benefits. The thing is, salary is steady and something I can budget my family off of. We can make decisions such as mortgage's, car payments, savings goals, investment goals, etc off of a salary. I can't do the same with a bonus. In fact, 08/09 made a lot of employees realize that the bonus can't be relied on in any way. Is it possible to make more through total compensation of lower salary + bonus than high salary + little to no bonus? Sure. But I'm happier with the salary, and my hunch is that many other employees would feel the same.
- ohyes 16y ago
  This is the same for benefits. Benefits programs can have their terms modified from year to year. A company with a great benefits program (ex. paying full tuition on a degree) can drop it from one year to the next. So if you have a budget that includes that degree being paid for, you might find yourself suddenly strapped for cash when you are footing the bill for the degree yourself.
- brown9-2 16y ago
  This is very true. The variability of a benefit should certainly be taken into account. My point was just that salary alone is not your complete compensation so it shouldn't be the only number looked at.
generalk 16y ago
That certainly makes sense, but weigh salary and benefits higher than bonuses. Anecdote: The company I work for had a particularly rough quarter years ago and couldn't make bonuses. Those that had planned on their bonuses being there were suddenly left with a deficit. Even though the company increased bonuses next quarter to make up, that didn't help those guys then.

Yes, but how do you value a bonus, if you don't know how much it is, or whether you'll get it? A salary of 50K is a salary of 50K, you get 50K over a year. How does that compare to a salary of 45K + bonus? Is it more, less, or the same?

bbarthel 16y ago
My basic formula runs like this - when I'm negotiating, I cite my previous salary as everything I earned - salary + all bonuses plus any other perks I can cite. When I'm comparing, I use only money I'm guaranteed: salary plus any guaranteed or performance bonuses I am confident I can hit (with targets in writing as part of my job agreement). Bonuses that are based on nomination or any other "approval" type process are really just too risky for me to consider as part of my overall compensation package. They will only factor if all else is basically equal.

sangaya 16y ago

I recently left a job that paid lower salaries and tried to focus on total compensation through bonus + benefits. The thing is, salary is steady and something I can budget my family off of. We can make decisions such as mortgage's, car payments, savings goals, investment goals, etc off of a salary. I can't do the same with a bonus. In fact, 08/09 made a lot of employees realize that the bonus can't be relied on in any way. Is it possible to make more through total compensation of lower salary + bonus than high salary + little to no bonus? Sure. But I'm happier with the salary, and my hunch is that many other employees would feel the same.

ohyes 16y ago
This is the same for benefits. Benefits programs can have their terms modified from year to year. A company with a great benefits program (ex. paying full tuition on a degree) can drop it from one year to the next. So if you have a budget that includes that degree being paid for, you might find yourself suddenly strapped for cash when you are footing the bill for the degree yourself.
brown9-2 16y ago
This is very true. The variability of a benefit should certainly be taken into account. My point was just that salary alone is not your complete compensation so it shouldn't be the only number looked at.

generalk 16y ago

That certainly makes sense, but weigh salary and benefits higher than bonuses. Anecdote: The company I work for had a particularly rough quarter years ago and couldn't make bonuses. Those that had planned on their bonuses being there were suddenly left with a deficit. Even though the company increased bonuses next quarter to make up, that didn't help those guys then.