Getting a new job is exciting, but making sure that your compensation package does not raise any red flags before your first day is an important step in avoiding potential problems down the road. Here are some of the most important things to consider when making sure that your employment contract covers all its bases.
Work With an Experienced Employment Attorney
First and foremost, hiring an experienced employment attorney is a crucial step in understanding and making sure that you obtain the full compensation your role entitles you to. While HEFCU can provide solid general advice that workers can benefit from, every position and every workplace is unique. Having an employment attorney that specializes in your region or specific type of position review your contract before signing it is an important step in understanding what adequate compensation for you should look like.
This attorney can address any potential red flags and make suggestions for other points to consider discussing with your employer before signing your contract to minimize any potential problems down the road that are linked to overlooked issues that should have been noticed months or even years ago. We provide general information about what to look for when making sure that a position and its benefits are a good fit for you, not personalized legal advice.
Compensation: It's More Than the Salary
Your total annual salary may be the first thing that comes to mind when considering whether a new position is likely to be a good match for your needs, but it is also important to look at the components that make up this number to make sure that they are fair and reasonable for your area and role. Some common elements of a complete compensation package to evaluate include:
The gap between your guaranteed base pay and any potential commissions or performance-based bonuses you may be eligible for
Retirement plan funding, including 401(k) matching and vesting (particularly within the first three years of employment)
Non-cash compensation, such as stocks or RSUs
A clear and well-defined path to equity or partnership
Benefits: The Hidden Paycheck
Many positions in the medical field also provide non-monetary benefits that enhance your overall financial situation. While these benefits are not as direct as your paycheck, they can make a significant difference between your saving and spending ratio by reducing the amount of your income that goes toward specific (and often expensive) areas of your life. Some common employment benefits to make sure your contract includes:
Health and disability insurance
Remote work equipment
Education stipends
Travel allowances
Directors & Officers (D&O) insurance or other liability coverage
The Exit: How You Leave Matters
Deciding that a position is no longer a good fit for you can be just as important as choosing a particular employer in the first place, and navigating a smooth and professional exit involves negotiation from both you and your employer. In most cases, employment contracts include a standard 2-week without cause termination clause. Executives may also negotiate stronger severance packages that include 3-6 months of assistance to help employees transition to a new role without unnecessary financial hardship. Employers also have the right to prohibit former employees from working for a direct competitor for a set time period after leaving.
Contact HEFCU to Explore Our Financial Services
At HEFCU, we prioritize helping employees across New Jersey understand what appropriate compensation for their position and location should look like and make sure that they are getting the benefits they are entitled to. While we cannot offer legal advice if the information we provide uncovers a potential concern, ensuring that our clients understand what their contracts should look like provides a helpful starting point if something does not seem right. We also provide a wide range of other specialized financial services that were designed with the unique needs of employees in the healthcare field in mind.
Contact us today to learn more about what to look for when reviewing your employment contract or to explore any of our other financial services.
