19 Oct 2018 | Written by Daniel Dewitt
Big companies get a bad rap in society today, but while they may, in fact, be leading to a dystopian neo-feudal police state, they often offer better benefits to their employees than smaller companies along the way. If you’re one of those employees or thinking about becoming one, you should make the most of it and fully leverage the benefits open to you.
The reason big companies are able to often better benefit packages than smaller companies is that they have more employees and thus are able to leverage economies of scale. Healthcare, retirement plans, 401k’s, and stock options are all easier for them to bundle and offer as benefit packages.
You obviously need to check that they do in fact offer them before you accept a job offer, but if you’re trying to decide between a job offer between a small company and a large one, here are a few of the benefits a larger company may be able to offer you.
As you may have been able to tell from our current national discourse, access to health insurance is a contentious and hot-button issue. Under the ACA everyone, today has the right to buy health insurance through its exchange, but there’s no question that employer-offered insurance from big companies is superior in almost every way.
Not only does employee health insurance from big companies offer as good if not better care than insurance through the ACA insurance exchange for the same price, but securing insurance through your job means you don’t have to worry about price instability or the recurrent attempts to repeal it. It’ll give you a measure of peace of mind and ensure a certain amount of stability in what you can expect from your health costs.
In general, large companies tend to be somewhat more affluent than smaller companies, and more prone to give out bonuses because of it. This is more often the case in companies where your job is skill-based and creative like sales or marketing, but sometimes large companies will simply give one out if the company had a good quarter or during the holiday season.
The pay structure on bonuses is something that’s worth inquiring about during the interview process, as it can drastically change your earning outlook and mean the difference between putting money in the bank or having to take out installment loans.
Retirement saving is one of the single most important aspects to consider when it comes to benefit packages. After all, we all grow old, and often sooner than we think. Unfortunately, because of the nature of inflation, simply stashing money in your bank account isn’t going to be enough to support you in your old age. That’s why 401k’s and other retirement plans were created, and why an employer plan can be so crucial.
Big companies are often willing to match the money you invest in your retirement (up to a certain amount). They do this without taking that money out of your current paycheck, which means it’s essentially free, and means you’re already getting a return of 100% on your savings. And that’s an interest rate that’s impossible to match anywhere else.