Question

Phillipe has two job offers as given below and really has no preference for either company. Compare the total compensations for the job offers and explain which job you think Phillipe should accept and why.

Answer 1

Phillipe should accept Company A

Company A Total compensations

Gross pay $62,000

Medical insurance $3,400

Paid time off $8,000

Retirement $2,700

Less Job expenses ($800)

Total compensations $75,300

Company B Total compensations

Gross pay $60,000

25% of gross pay in employee benefits $15,000

($60,000×25%)

Total compensations $75,000

Explanation:

Answer 2

Company A's total employment remuneration is $75,300, whereas Company B's is $75,000. If he just considers total employment remuneration while choosing a job, he should go with Company A.

*Company A's total remuneration is reduced by the $800 job expenditure.

Also, while the overall salary difference is just $300, he may want to pick based on other factors, such as how many vacation days he gets each year or how far he has to commute to work.

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