What is the purpose of translating non-monetary benefits into an equivalent annual dollar figure during the total compensation view?

Answer

To enable creative problem-solving by suggesting trades between salary differences and the value of perks

When evaluating the total compensation package, it is essential to assess non-salary components like vacation time, bonuses, or remote flexibility alongside the base salary. Translating these non-monetary benefits into an equivalent annual dollar figure allows for direct comparison and creative negotiation. For instance, if there is a small gap in the base salary negotiation, a candidate can suggest trading a specific dollar amount difference for a tangible non-monetary benefit. An example cited is trading a $3,000 base salary difference for two extra vacation days, valued by the candidate at $2,000 per day. This demonstrates creative problem-solving and flexibility, allowing both parties to meet in the middle without altering the primary base salary budget line item for the employer.

What is the purpose of translating non-monetary benefits into an equivalent annual dollar figure during the total compensation view?

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