How to Figure Out What Percentage of a Number
Want a better-paying job? First you need to figure out how much you really make
So many factors go into deciding whether to quit your job, but pay is a big one.
Even if money isn't your top priority, it's important to figure out how much you're actually getting from your current employer because what you make is more than just your salary or wage.
Estimating your total compensation gives you a truer measure of how much your employer actually spends on you. And it will help you figure out if a new job offer will work as well or better for you financially.
To make the comparison, include in your tally bonuses and other forms of incentive pay, the value of the current benefits you use as well as those benefits on offer that you might use in the future (e.g., paid parental leave if you plan to start a family).
All in, your total compensation may be 25% to 40% higher than your gross salary or wages, according to compensation experts.
Crunch your numbers
Some employers make it easy for you to see your total compensation by providing a "total rewards statement."
But if yours doesn't, check your internal human resources web site, which may provide an annual benefits statement and annual pay statements. Your annual W-2 is another resource to check, not only for gross pay, bonuses and taxes, but also for information on your employer's costs regarding your health coverage in Box 12DD.
Consider, too, how your total compensation has changed over the past few years since employer benefits and costs may vary.
"Trend it. Have your overall benefits gone up or down? And what is that related to?" said Katie Manning, vice president in the compensation and career strategies practice at Segal.
It's important to figure out how much you're actually getting from your current employer because what you make is more than just your salary or wage.
Here are some key benefits to include on top of salary and bonus
Health coverage: Employers typically cover the lion's share of your health insurance premiums -- often 70% to 85%, according to 2020 data from the Kaiser Family Foundation.
But some employers may offer a smaller subsidy if an employee chooses a family coverage plan, according to Rob DeNinno, principal at Precision Benefits Group, which works with small to mid-size businesses.
If you're participating in a health savings account, don't forget to include what your company pays into your account.
Or if you don't have an HSA, but you participate in a tax-advantaged flexible spending account for out-of-pocket health or dependent care costs, consider the limit on contributions your employer sets and how much that saves you in taxes.
For instance, if your employer lets you contribute $2,500 a year, your tax savings comes to $550 if your top federal income tax bracket is 22% ($2,500 x 22%). Even though it's a tax benefit from the federal government, it's good to keep in mind because not all employers offer FSAs or if they do, they may set a different limit on contributions than your current company.
Include, too, your employer's cost to provide vision and dental insurance.
Retirement savings: Check your pay stub to see how much money your employer pays into your 401(k) every pay period and multiply it by the number of paychecks you get per year. Or, get the total amount your company contributed in 2020 from your online account at your plan provider. If that's not available to you, do your own calculation based on the formula your employer uses to match your 401(k) contributions, which should be available on your HR site.
One common formula employers use is a 50% match on your contributions up to 6% of your salary, according to data from Brightscope/ICI. Another is a dollar-for-dollar match on your contributions up to 4% of your salary.
So if you make $100,000 and save at least $6,000 a year in your 401(k), your employer would kick in another $3,000 to $4,000 under those formulas. And that's money you don't have to pay tax on until you retire.
Remember, too, different companies may have different vesting schedules -- the time you must work there before being able to keep all your employer's 401(k) contributions.
Some employers may contribute to your retirement savings through a profit-sharing plan. Their contribution may vary from year to year, depending on business performance. But they will make the contribution whether or not you put money away yourself in your 401(k) or IRA.
Stock options: If you're lucky enough to have the option to buy your company stock at a discount and your options are close to being vested, how much will the discount your employer offers save you (i.e., the difference between your "strike" or "grant" price and the current market value)? Suppose you have 50 options at a strike price of $20 a share and the stock is trading at $35 today. You might consider that $15 gain in share price multiplied by your 50 shares as part of your pre-tax compensation the year you exercise your options.
Paid time off: Count the paid weeks off available to you in a given year whether or not you take them all (e.g., for vacation, holidays and sick days). Then calculate what you would be paid for that time.
For example, if you typically gross $3,000 every two weeks, and you are entitled to take up to seven weeks off, that's worth $10,500.
Then do the same with other types of paid time off that you might use in the future, such as parental leave, bereavement leave or family care leave.
Educational benefits: If your employer offers tuition reimbursement, student loan assistance, or pays in full for training or career development classes, add that to your compensation, Manning said.
Less immediate but valuable benefits: Disability insurance and life insurance are both good to have. If it's tough to ferret out what your employer spends on these, a good ballpark range for both types of coverage combined might be $300 to $800 annually, depending on your income and the plan's design, DeNinno said.
Wellness and assistance benefits: He also recommends valuing the various wellness benefits your employer provides (e.g., gym discounts or nutrition counseling) and the services available to you through an Employee Assistance Program. These may include psychological, grief or substance abuse counseling, financial coaching or legal assistance. Some EAPs may also provide help with daycare or eldercare, Manning said.
If you use any of these services, assess how much money you're saving by not paying for them yourself.
Hard-to-price but important benefits to value
Beyond total compensation, consider benefits on offer that are hard to put a fixed dollar amount on but which are very valuable to you, said Monica Martin, the total rewards leader at Willis Towers Watson.
Maybe your company lets you work at home a few days a week -- how much does that save you in commuting, dry cleaning and other related costs?
Or what about career growth opportunities or mentoring programs that could lead to a bigger paycheck down the line?
For lower wage workers in particular, Martin said, even if a new employer offers a higher hourly wage but skimps on benefits you currently have, will that new offer really provide more money at the end of the day than you're making now?
"Think about the total package," she said.
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The US cities with the largest growth in high-paying jobs
Cities With the Largest Growth in High-Paying Jobs
Photo Credit: El Nariz / Shutterstock
One of the COVID-19 pandemic's most significant long-term effects on the economy could be rising wages. With widespread shortages in the labor market reported this summer, many employers—particularly those with lower-wage employees—have tried to entice workers with improved compensation and benefits. These trends have led to the fastest rates of wage growth since the Great Recession, especially among the lowest earners.
But lower-wage professions still have a long way to go to match the strong rates of wage growth for higher-income jobs over the last few decades. According to data from the Economic Policy Institute, inflation-adjusted wage growth from 1979 to 2019 for a worker at the 10th percentile of wages was a mere 3.3%. For the median earner, wages grew 15.1% over that span, while for 95th percentile earners, wages were up 63.2%.
These divergent trends have driven up the share of Americans in high-earning professions and created larger gaps between higher and lower ends of the income spectrum. Twenty years ago, only 0.7% of American workers were in jobs that typically paid more than $100,000 per year. By 2015, that share was 3.8%. And in the last five years alone, the percentage of American workers in six-figure jobs more than doubled to 7.9% in 2020.
The percentage of American workers in 6 figure jobs has risen sharply
One field that may be contributing to the growth rate of high-paying jobs nationwide is tech: software developers and computer and information systems managers—both of which have faster growth rates than most other professions—currently combine for more than 1.9 million high-paying jobs. But while fast-growing tech jobs and more specialized fields like law, health, or finance often get the attention, the most common six-figure profession is general and operations managers. More than 2.3 million U.S. workers fill this role, which is common in organizations of all types across the public and private sector, and it has a median annual income of $103,650.
General managers are the most popular 6 figure jobs
In addition to being concentrated in certain fields, high-paying jobs are also geographically concentrated. Six-figure salaries are most common in coastal states including California, Massachusetts, Maryland, and New York, where the population tends to have greater educational attainment, cost of living is higher, and high-paying industries like tech, business, law, and health and life sciences are more prevalent. But even many parts of the country where these jobs are less common are seeing growth. Six-figure jobs more than tripled in Hawaii from 2015 to 2020, and ten other states—mostly in the Mountain West and upper Midwest—had a growth rate for six-figure jobs of more than 100% over the same span. Many of these states are proving more attractive to employers and professionals seeking lower-cost locales.
Coastal states have the highest share of employment in 6 figure jobs
At the local level, low costs can also be a major draw for companies looking to grow or expand, along with access to a strong labor supply or top universities. These factors have boosted the growth of high-paying jobs in metros like Nashville, Phoenix, and others as they have emerged as viable alternatives to established centers like New York or the Bay Area.
To determine the locations with the largest growth in high-paying jobs, researchers at Stessa calculated the percentage change in employment in six-figure jobs from 2015 to 2020 using data from the U.S. Bureau of Labor Statistics. In the event of a tie, the location with the greater percentage of total employment in six-figure jobs for 2020 was ranked higher. For the purpose of this analysis, employment in six-figure jobs was defined as total employment in occupations with a median annual wage of $100,000 or more.
Here are the metros with the largest growth in high-paying jobs.
Small and midsize metros with the most growth in high paying jobs
15. Austin-Round Rock, TX
Photo Credit: Sean Pavone / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +101.1%
- Percentage of total employment in six-figure jobs (2020): 7.6%
- Total employment in six-figure jobs (2020): 80,560
- Total employment in six-figure jobs (2015): 40,060
- Median annual wage across all occupations (2020): $44,020
13. Sacramento–Roseville–Arden-Arcade, CA
Photo Credit: Andrew Zarivny / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +107.7%
- Percentage of total employment in six-figure jobs (2020): 12.9%
- Total employment in six-figure jobs (2020): 124,480
- Total employment in six-figure jobs (2015): 59,930
- Median annual wage across all occupations (2020): $48,070
12. Raleigh, NC
Photo Credit: Sean Pavone / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +109.2%
- Percentage of total employment in six-figure jobs (2020): 9.9%
- Total employment in six-figure jobs (2020): 61,470
- Total employment in six-figure jobs (2015): 29,380
- Median annual wage across all occupations (2020): $43,500
11. Salt Lake City, UT
Photo Credit: Sean Pavone / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +122.3%
- Percentage of total employment in six-figure jobs (2020): 6.2%
- Total employment in six-figure jobs (2020): 45,090
- Total employment in six-figure jobs (2015): 20,280
- Median annual wage across all occupations (2020): $42,280
10. Portland-Vancouver-Hillsboro, OR-WA
Photo Credit: Jon Bilous / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +124.7%
- Percentage of total employment in six-figure jobs (2020): 10.1%
- Total employment in six-figure jobs (2020): 115,080
- Total employment in six-figure jobs (2015): 51,220
- Median annual wage across all occupations (2020): $48,050
9. Buffalo-Cheektowaga-Niagara Falls, NY
Photo Credit: Sergey Novikov / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +143.0%
- Percentage of total employment in six-figure jobs (2020): 5.0%
- Total employment in six-figure jobs (2020): 24,590
- Total employment in six-figure jobs (2015): 10,120
- Median annual wage across all occupations (2020): $42,040
8. Tucson, AZ
Photo Credit: Sean Pavone / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +156.2%
- Percentage of total employment in six-figure jobs (2020): 3.7%
- Total employment in six-figure jobs (2020): 13,730
- Total employment in six-figure jobs (2015): 5,360
- Median annual wage across all occupations (2020): $38,900
7. San Antonio-New Braunfels, TX
Photo Credit: f11photo / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +163.0%
- Percentage of total employment in six-figure jobs (2020): 5.7%
- Total employment in six-figure jobs (2020): 56,780
- Total employment in six-figure jobs (2015): 21,590
- Median annual wage across all occupations (2020): $37,920
6. Grand Rapids-Wyoming, MI
Photo Credit: Henryk Sadura / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +175.2%
- Percentage of total employment in six-figure jobs (2020): 4.2%
- Total employment in six-figure jobs (2020): 21,630
- Total employment in six-figure jobs (2015): 7,860
- Median annual wage across all occupations (2020): $39,430
5. Riverside-San Bernardino-Ontario, CA
Photo Credit: Steve Minkler / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +181.3%
- Percentage of total employment in six-figure jobs (2020): 6.3%
- Total employment in six-figure jobs (2020): 93,620
- Total employment in six-figure jobs (2015): 33,280
- Median annual wage across all occupations (2020): $39,630
4. New Orleans-Metairie, LA
Photo Credit: Sean Pavone / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +204.8%
- Percentage of total employment in six-figure jobs (2020): 6.5%
- Total employment in six-figure jobs (2020): 33,310
- Total employment in six-figure jobs (2015): 10,930
- Median annual wage across all occupations (2020): $38,280
3. Las Vegas-Henderson-Paradise, NV
Photo Credit: Sean Pavone / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +216.1%
- Percentage of total employment in six-figure jobs (2020): 4.8%
- Total employment in six-figure jobs (2020): 43,690
- Total employment in six-figure jobs (2015): 13,820
- Median annual wage across all occupations (2020): $37,690
2. Phoenix-Mesa-Scottsdale, AZ
Photo Credit: Sean Pavone / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +217.1%
- Percentage of total employment in six-figure jobs (2020): 8.6%
- Total employment in six-figure jobs (2020): 180,740
- Total employment in six-figure jobs (2015): 57,000
- Median annual wage across all occupations (2020): $41,300
1. Nashville-Davidson–Murfreesboro–Franklin, TN
Photo Credit: Mihai_Andritoiu / Shutterstock
- Percentage change in six-figure jobs (2015–2020): +270.9%
- Percentage of total employment in six-figure jobs (2020): 5.6%
- Total employment in six-figure jobs (2020): 53,820
- Total employment in six-figure jobs (2015): 14,510
- Median annual wage across all occupations (2020): $40,650
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How to Figure Out What Percentage of a Number
Source: https://dothaneagle.com/business/investment/personal-finance/want-a-better-paying-job-first-you-need-to-figure-out-how-much-you-really/article_41e50674-49cd-5f8c-949a-e91a266cd6ac.html
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