When a person is offered a job in Montgomery, Pennsylvania, reviewing the employment contract carefully should be a top priority because simply accepting the first offer may cause long-term issues for the employee. It is natural to focus attention on the salary when considering the position, but even when the amount is lower than expected, other factors that influence compensation may make the job more attractive.
According to Forbes magazine, the dollar amount listed as the base salary is only one facet of the compensation plan. Not only is that number important, a potential employee should find out how and when the salary could be raised or lowered. A lack of cost-of-living increases and performance-based salary raises may make a seemingly good offer less than satisfactory. Even worse, if the market takes a downturn, an employee may be expected to take a pay reduction in the case of cutbacks.
Forbes magazine also recommends that a potential employee evaluate bonuses and other incentive compensation. Some companies have an objective process for determining the amount, while others rely on a formula. Commissions can vary widely among employees within the same bracket, so it is a good idea for a person to find out the average earning potential, as well as the minimum and maximum amounts possible.
Benefits such as pension and retirement plans and stock options may also affect the amount of earning potential a future employee has at a company. Even annual vacation leave can become a source of income if the employer allows the option for an employee to cash it out when leaving the company. The inability to negotiate for a higher initial salary does not have to keep someone from augmenting the income included on the employee contract.