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Beyond Salary: A Comprehensive Guide to Tech Compensation Packages

Written by: App Academy
Published on: October 28, 2024
man signing an offer letter while sitting at a desk

Tech job candidates often focus on negotiating the highest possible salary, but a recent shift shows more employees looking at the full package rather than pay alone.

Benefits like flexible schedules, remote work options, and professional development support are huge tech job benefits — almost as if not equally as important as the annual salary in the offer.

In fact, two-thirds (about 66%) of tech workers who negotiate their total compensation find success.

These elements — employee benefits — are becoming more relevant to top talent, as tailored benefits packages can sometimes be more valuable than additional salary at a new job when it comes to long-term job satisfaction.

Many have declined job offers due to insufficient benefits, while others are willing to accept lower salaries if the benefits are compelling—especially things like healthcare, mental wellness support, and retirement contributions, which rank at the top of employee priorities.

But skills and experience come at a premium in the tech industry. The ability to customize offers can give companies an edge in recruitment and retention. Big tech and startups alike are increasingly providing options like childcare, flexible schedules, and fitness memberships, which resonate with candidates looking for work-life balance and personal growth.

When negotiating a tech job offer, you need to look beyond salary to assess which benefits will truly support your career and personal life goals. This helpful guide will help you understand what to look for so you can feel empowered to accept a job offer that best fits your needs.

9 Elements of Tech Compensation Packages You’ll Want to Consider

Health Insurance

Health insurance remains one of the most essential components of a tech compensation package.

Many tech companies offer comprehensive health insurance plans that cover medical, dental, and vision, mental health support and options like flexible spending accounts (FSA) or health savings accounts (HSA). These allow for pre-tax contributions to help cover medical expenses, supporting both immediate healthcare needs and long-term wellness.

Part of the health insurance component of your compensation package will include how much you’ll pay out of pocket, if anything, each month for health insurance, as well as coverage for dependents and spouses.

Retirement Plans

Most tech companies offer some form of retirement plan, often a 401(k), which may include matching contributions up to a specific percentage of your salary. This matching is essentially free money” and a valuable asset for long-term financial planning.

Look for plans with high contribution matching

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