What to look for in your first job after graduation—besides a good salary
You’ve finished school and are looking to start your career with a first “real” job. But you also need money, fast. Let’s face it, adulting can be challenging when you’re paying off student debt, potentially moving out on your own and learning to pay your bills.
So, what do you do? Here, we’ll explain the financial perks and other benefits to consider when comparing job offers. This way, you can prioritize what’s most important to you—before signing on the dotted line.
Three money perks to keep in mind for your first job
Employment can offer many different kinds of financial benefits. Although salary is often the first one we think of when starting a job hunt, other perks can add to your total earnings. Here are the top three financial incentives to consider that can make a big impact on your life.
1. Bonuses and commissions
On top of your base salary, you may be presented with different bonus offers. This may include a signing bonus when you first start with the company or a performance-based, year-end bonus. Some organizations offer referral bonuses to employees who refer another person for a role with the company, typically upon their hiring. The size of a company bonus could be tiered and increase with seniority or years of service.
If you want to work in sales, consider commissions. If you’re really good at meeting sales quotas, you could earn some serious income on top of your base salary. With all your hard work, you could also receive a financial reward for hitting a sales goal.
2. Company pension
If you’re lucky enough to find a job that comes with a company pension, it’s definitely worth looking into. Company pensions usually take the form of a defined benefit (DB) pension plan or a defined contribution (DC) pension plan. With a DB plan, you’re guaranteed a certain amount of income in retirement based on your average salary and years of service with the company. However, DB plans are not very common anymore. Most employers offer a DC plan. With a DC pension, you are not guaranteed a specific amount in retirement, because the benefits are based on the amount you contribute and your investment returns.
One day, you may be faced with a dilemma: choosing between a job that pays a higher salary and one that has a lower salary but offers a pension. You may initially think the former is the better option. However, remember that a pension can help you achieve and maintain your dream lifestyle during your golden years.
3. Group investment accounts and employer matching programs
Some employers offer access to a group registered retirement savings plan (group RRSP) or a group tax-free savings account (group TFSA), which you can use to save and invest on a tax-free or tax-deferred basis. You can decide how much you want to contribute to the account and even have the money come directly off your paycheque. And if you retire or leave the company, you’ll be entitled to your account balance, which includes your contributions and any investment growth. Just keep in mind that group RRSP and group TFSA contributions also count towards your RRSP and TFSA contribution limits.
If the company you want to join is listed on a stock exchange, there may be an opportunity to become a shareholder. For example, you might be able to buy company shares through an employee stock purchase plan (ESPP). As with a group RRSP or group TFSA, you can decide the amount to contribute. If you receive dividends from your investments, those can be reinvested in your ESPP account.
As part of your total compensation package, some employers may offer to match up to a certain percentage of your contributions towards your group RRSP or group TFSA, pension or ESPP. For example, if you contribute $200 from every paycheque towards a group RRSP, and your employer offers a 50% matching program, a total of $300 would be deposited into your account every time you’re paid—and only $200 would be deducted from your pay.
More financial perks to consider
Bonuses, pensions and group investment accounts are some of the top financial incentives to watch for. However, there are many others that could be on the table for you:
- Benefits plan: Typically this includes health, dental, vision care and insurance coverage. Your insurance plan may offer life insurance, accident and critical illness coverage along with travel coverage.
- Paid time off: Verify that you receive vacation and sick days and that you will get paid during statutory holidays. Many companies offer a standard of two weeks’ vacation when you start, a number that may increase based on the number of years of service.
- Discounts for employees, friends & family: If you work for a business that sells products and services, you may be eligible for a staff discount. Sometimes, you can extend an offer to your family and friends so they can benefit, too.
- Annual pay raises: When you are part of a union, you may have annual standardized pay increases. Otherwise, you can negotiate a raise with your boss during your performance review.
- Industry association memberships: Your company may have existing partnerships with associations and organizations—such as Canadian Defence Lawyers, the Association of Registered Graphic Designers or the Financial Planning Association of Canada—giving you access to a discounted (or even complimentary) annual membership that can cost hundreds of dollars. This perk may include event tickets at a reduced cost and/or access to certain networking events.
Don’t forget non-monetary perks
Although financial incentives are top of mind for job seekers, non-financial perks can also contribute to your career development and overall happiness. Here are some of the nice-to-haves to consider.
- Flexible schedule: Some companies have been offering remote and/or hybrid roles since the pandemic. You may even have the ability to set your working hours.
- Training and career development: At some point, you may want to upgrade your skills by taking a course. Some employers will offer to cover the cost for you up front or reimburse you once you’ve completed the course. If you can get a spot in a graduate rotational program, you’ll have the opportunity to gain experience in various departments.
- Rewards and recognition: Receiving an award or certificate to recognize your career achievements can be motivational. These can be given out monthly, quarterly or annually.
- Team events: Regular team-building events or social gatherings are not only fun—they’re also a great way to get to know your colleagues better.
- Healthy meal options: Some mid-to-large-sized companies have a cafeteria. A few have elevated the experience with an on-site barista that serves complimentary beverages and snacks.
Should I accept the first job offer I get after graduating?
If you’ve got bills to pay, you may need to find a temporary or part-time job after graduating from school before you can find a role that suits your career aspirations. Even if the job pays minimum wage, don’t sweat it. If it helps you pay your rent and buy food, that’s what matters. You can take solace in knowing that it’s a short-term situation. It’s especially helpful to remember this when finances are tight and the cost of living is going up quickly.
A short-term or contract position can help you get your foot in the door at a company. Contractors tend to earn higher hourly wages, but they don’t usually receive company benefits or paid time off. After I graduated, I landed a full-time, 12-month contract for my first job. When I proved to be a valuable asset to the company, I secured a full-time permanent role that included health benefits and a year-end bonus.
Remember, when the right time comes, look for the financial and non-financial perks that will benefit you in the first step of your career. It may not be perfect, but at least it can help relieve some financial stress and serve as a stepping stone toward your dream job.
Read more Making It:
- How to take a gap year trip without breaking the bank
- First home savings account: A Gen Z guide to achieving home ownership
- How to survive a recession: Six tips for Gen Z and those who haven’t faced one before
- Working towards your dream lifestyle? Here’s how financial goals can help
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