Total Compensation Explained: Unlocking the Value of Workplace Benefits and Perks

You’re on the job hunt, evaluating your options, and prioritizing what’s important to you. Naturally, you want a role that excites you—one that matches your qualifications and enthusiasm; but let’s be honest, total compensation is equally important, and it is not just about the salary figure on your offer letter. 

Total compensation is the complete package—it includes salary, benefits, perks, and all the extras that impact your financial well-being, work-life balance, and overall happiness. As a Talent Acquisition Partner, I always conclude candidate calls by discussing compensation, but I begin with benefits and perks; I do this because I know that’s what truly excites people about an opportunity. 

According to LinkedIn Global Talent Trends, companies offering attractive perks and benefits not only see happier, more engaged employees but also have 56% lower turnover. After all, why would anyone want to leave a company where they feel valued and appreciated?

Why benefits and perks matter

What’s important to you might not be as important to someone else, and that’s perfectly okay! The key is to understand what a company offers and how it aligns with your needs. Employers that provide a broad range of benefits attract a diverse workforce, and as a job seeker, it is essential to take the time to evaluate what truly matters to you and your family.

Let’s break down the most valuable benefits and perks companies offer—and why they should matter to you.

Health and wellness benefits

• Health insurance – This can be a game-changer for your finances. When I joined UKG, I saved $700 a month. That’s an extra $8,400 per year—which I absolutely factored into my decision!
• Premiums – How much is deducted from your paycheck? (Hint: Some companies cover premiums completely or partially.)
• Coverage – What’s included? Consider deductibles, co-pays, out-of-pocket maximums, and whether your doctors are in-network.
• Mental health support – Access to therapy groups, counseling, and stress management programs can be very important to many people. Mental health is just as important as physical health, and having these resources can make a significant difference in your overall well-being.
  • For more guidance on how leaders can build a healthier workplace, tune in to a webinar on May 13 featuring Jay Shetty where he’ll discuss mental health and finding purpose at work.
• Wellness perks – Reimbursed gym membership fees, acupuncture, massages – these small perks can make a big difference in your overall well-being.
• EAP (Employee Assistance Program) – This is a great resource for employees and their families, offering support for both work-related and personal life issues.   

Retirement and financial planning

Who wants to work forever? Not me! A solid retirement plan is essential for ensuring your long-term financial security.

401(k) or retirement plans

• Employer match – Free money! Does your company match your individual contributions? (UKG offers 45% matching up to the IRS limit for U.S. employees)
• Vesting period – How long do you have to stay before you’re entitled to the employer match? I once lost three years’ worth of matching funds because I left before hitting the vesting period—lesson learned! 

Bonuses and profit sharing

• Bonuses – Is there a bonus structure for your role? If so, how is it calculated and how often is it received?
• Stock options/RSUs – Does the company offer ownership in the company?
• Merit increases – Are there annual performance-based raises?

Paid time off (PTO) and work-life balance

Work is important, but life is even more so. PTO policies and work flexibility make or break job satisfaction. Ask yourself, “What is most important to me and my situation?”

Paid time off (PTO)

• How much PTO do you receive? Is it front-loaded or accrued?
• Does your PTO roll over? Or does it expire at year-end?
• Sick days vs. vacation days. Some companies combine allowed vacation time with sick days, while others keep them separate. 

Remote work and flexible schedules

• Can you work from home? (Hybrid? Fully remote?)
• Do they allow flexible hours? Because life happens — doctor’s appointments, school drop-offs, or emergencies can all arise at a moment’s notice.

Family and life benefits

Planning on growing your family? Certain benefits can save you money, like the ones listed below.

• Parental leave – Some companies still don’t offer paid maternity or paternity leave. A former coworker once shared that she only took one week off after having a baby because she couldn’t afford unpaid leave.
• IVF and fertility support – IVF can be a significant financial burden for families. If a company offers financial coverage for IVF treatments, it can be a valuable benefit for many.
• Adoption assistance – Adoption fees can be substantial—some employers reimburse or provide financial aid to help cover these costs. (UKG helps employees offset the costs of adoption and surrogacy expenses.)

Career development and growth

Most of us don’t want to be stuck in the same role forever. A company that invests in your growth and professional development is worth considering.

• Tuition reimbursement – Does the company cover the cost of continued education? (UKG provides tuition reimbursement for degrees that are relevant to your work at UKG.)
• Certifications and training – Does the company cover industry certifications?
• Mentorship and leadership programs – Does the company have programs to develop future leaders internally?
• Internal promotions – What’s the internal promotion rate? Asking this question during interviews can be great indicator of growth potential within the company. 

Lifestyle perks and financial extras

Lifestyle perks and financial extras are non-salary benefits that can enhance employees' overall well-being and job satisfaction. The little things can add up! 

• Commuter benefits – Does the company offer benefits to help alleviate the costs associated with traveling to and from work (gas expenses, parking fees, or public transport passes)?
• Student loan repayment – Does the company offer any student loan repayment assistance as part of their benefits package? If you have student debt, this benefit is gold. (UKG offers a program called U Choose, where employees can receive reimbursement for qualifying expenses, like student loan repayment.)
• Travel perks – These perks can encourage employees to take time off, while also supporting their travel adventures. A company I once interviewed at offered $2,500 hotel credit annually, which would be a great perk for the travel lovers out there.
• Discounts – Does the company offer any discounts for rental cars, theme parks, or concerts?
• Pet insurance – Does the company offer a reimbursement program for pet insurance costs? If you have a furry friend, this benefit can be incredibly helpful.
• Childcare and tutoring assistance – These assistance programs can offer free or discounted tutoring services for children, along with reimbursement for childcare expenses.
• Food stipends – Free lunch? Monthly UberEATS credits? These small perks can enhance convenience and reduce daily stress.

Company culture (the biggest factor, in my opinion!)

At the end of the day, you’re spending 40+ hours a week at your job—so it is important to reflect on what company culture means to you!

• Positive and fun work environment – Is the leadership team supportive? Do the employees seem happy? Are there engaging events and activities occurring throughout the company? Do the people seem friendly and collaborative?
• Equity and inclusion – Are there equity and inclusion initiatives in place that foster an inclusive environment? Are there Employee Resource Groups (ERGs) supporting and driving growth for these initiatives?
• Employee appreciation – Does the company recognize and reward employees for their hard work and dedication?
• On-site perks – Are there any perks to help make your daily work routine more enjoyable and convenient? Think free meals, snacks in the breakroom, gym access at the workplace…anything to promote a happy, healthy you!
• Volunteer days – Any company that values community involvement and encourages you to take time to give back to your community is a company I want to work for! (UKG offers two paid volunteer days each year.)

In summary, it is essential to consider the big picture when considering a job - all the perks and all the benefits. While a great salary is important, the right benefits, perks, and company culture are crucial for your long-term happiness and success. 

 Read more career advice.   Explore careers at UKG!