How to Maximize Your Compensation Package

How much do you actually earn from your job? Many people focus only on their paychecks when they evaluate compensation. Yet financial and career experts advise employees to regularly review all parts of their compensation package — including vacation, health coverage, retirement matching and other perks — to avoid leaving value, and therefore money, on the table.

Cindy Marques, a certified financial planner and co-founder of MakeCents, points out that compensation often goes well beyond base salary. “Benefits and employer-provided insurance translate into real dollars saved,” she says. “Those savings are essentially money back in your pocket because you don’t have to pay for those services yourself.”

Marques notes that employees frequently forget what’s included in their package or fail to notice changes in group plans, which can lead to missed opportunities to capture that value.

Make use of company perks and benefits

Jillian Climie, a compensation specialist and co-founder of Vancouver-based consultancy The Thoughtful Co., recommends taking time to read the benefits and perks your employer provides before meeting with human resources. “These documents aren’t the most exciting to read, but doing that homework has huge value,” she says. That’s especially true when you receive a promotion and new benefits — like funding for professional development or coaching allowances — may be added to your package.

Perks can be broader than you expect. Fitness allowances for gym memberships or home exercise equipment, ergonomic allowances for a proper home office setup, reimbursement of monthly phone bills, paid parking and coverage of work-related travel are all common examples that sometimes go unused. Climie stresses that many of these conveniences are unofficial or under-promoted, so proactively asking about them can pay off.

Even the most standard benefits — paid vacation and health care — are often underutilized, says Marques. Some workers neglect to use paid time off because they think they can’t afford travel or don’t value a staycation, yet taking paid downtime can deliver meaningful wellbeing benefits while preserving your income.

Marques also warns that vacation accruals aren’t permanent. “You’re not going to carry those vacation days forever,” she explains. In many workplaces, leftover vacation days from the previous year expire by the end of the first quarter of the new year. “If you don’t use them, you will lose them — and that is money left on the table.”

How to not miss out on any form of compensation

With deadlines and a busy schedule, it’s easy to lose track of what your employer offers. Climie suggests setting aside time to review your benefits regularly: “On a quarterly basis, allocate an hour to ask yourself, ‘Have I used all my health and dental benefits that could affect me or my family?’” She also recommends speaking with colleagues about how they schedule appointments or otherwise use their benefits.

Workplace flexibility has increased for many employers since the pandemic, making it easier to attend medical appointments during work hours and to take advantage of health coverage. “Smart workplaces understand that employees who feel valued and fairly compensated are more productive,” Climie adds.

Retirement benefits are another area where many employees miss out. Craig Copeland, director of wealth benefits research at the Employee Benefits Research Institute, says a substantial number of workers do not maximize employer-sponsored retirement plans or pension-matching programs. When employers match a portion of your retirement contribution, that match is effectively free money toward your future.

One common obstacle is that default contribution rates are often set below the maximum match. “Many employers have the default rate below the maximum match, and people then stick with the default rate,” Copeland explains. Employees sometimes hesitate to increase contributions because of current living costs and budget constraints, but even modest increases can significantly improve long-term outcomes.

Marques emphasizes the long-term power of matches by running scenarios with clients, especially younger workers who may not immediately appreciate the benefit. For example, a young employee earning $80,000 a year with a typical employer match of 3% would receive $2,400 annually — $200 a month — in employer contributions. Over decades, that matched amount can grow into substantial additional income in retirement. “When you have a matching program with your employer, that’s a deal that’s hard to beat,” she says.

Ultimately, Marques sums it up simply: if your employer offers any sort of package, it is in your interest to understand and use it. Regularly reviewing benefits, planning vacation time, maximizing retirement matching and asking about overlooked perks can all boost the real value of your total compensation.

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