Read your contract
IT’S YOUR JOB: BEFORE SIGNING ON THE DOTTED LINE, CONSIDER THESE POINTS The employment offer in its entirety should be scrutinised.
While the salary is always an important factor, there are a range of accompanying finances that should be taken into account when contemplating a job offer. The employment offer in its entirety should be scrutinised through a discerning lens to ensure that you fully understand the economic consequences of accepting the offer.
Here’s what to consider.
The nature of your employment contract
Before making a decision, it is important that you receive the offer and proposed employment contract in writing, and that you fully understand the nature of the position being offered, in terms of whether it is a permanent position, fixed-term contract, or temporary position. Further, be clear on whether the offer sets out your basic salary prior to add-on benefits, or whether it’s a cost-to-company amount that includes the value of all benefits. Ideally, ask your prospective employer to prepare a breakdown of your salary, deductions, and your final take-home pay, and for details as to when and how your salary will be paid.
Your retirement fund benefit
Determine whether the prospective employer provides retirement fund benefits and the nature of these benefits. Larger employer groups often offer retirement fund benefits in the form of a pension or provident fund, while smaller employers may offer membership of a group retirement annuity. Either way, determine which investment company is being used, what investment strategies are available to choose from, the level at which you can contribute, whether your employer contributes to the fund on your behalf, and what administration platform is being used.
Your group risk cover
With the added advantage of being subject to group underwriting as opposed to personal underwriting, group life cover is generally more cost-effective than if you were to take out cover in your personal capacity, meaning that group life and disability cover can be very attractive benefits. Many employers offer group life cover as a multiple of annual income, for instance, two times or three times your annual salary.
Healthcare cover
Many employers make membership of a medical scheme a condition of employment, so find out whether this is the case and, if so, whether you are free to belong to any registered medical aid or if you’re required to join your employer’s designated medical aid. If the prospective employer offers a medical aid subsidy, find out the details of how this works, and whether the subsidy continues into retirement.
Expenses incurred in fulfilment of your job
Be sure to get upfront clarity with regard to how any additional expenses, such as cellphone, travel and hardware costs, will be covered. If you are required to travel for the company, will they provide you with a travelling allowance and an allowance for out-of-town expenditure? If you use your cellphone for work-related functions, will the employer reimburse these costs? Are you required to purchase your own laptop or computer? Who pays for software upgrades and licence renewals?
Work-from-home opportunities
Depending on your personal circumstances, you may want to gauge your prospective employer’s attitude towards working from home or working flexible hours, if and when necessary. How accommodating will they be to the personal needs of their employees? Are they clock-watchers, or do they trust you to get the job done?