What's Your Time Worth?

Intangible Compensation

When we talk about compensation, most people think about salary, bonus, equity, and benefits.

Naturally, all those things matter. People should be paid fairly for the work they're doing, and comp is one of the biggest factors most people consider when deciding whether to accept a job.

However, there are many things that can make a job extremely compelling that never show up on an offer letter: a manager you trust, flexibility, autonomy, working with people you genuinely like, believing in what the company is doing, opportunities to grow, and much more. Those things are harder to put a dollar amount on, but I believe they're still very much part of your compensation package

Time Is Money

Flexibility is probably the clearest example. Let's say you have two offers. One pays $200,000 and requires you to be in the office five days a week, while the other pays $185,000 and requires two days in the office. If your commute is an hour each way, that $15,000 difference comes with roughly six additional hours of commuting every week.

Is it worth it? Maybe. It depends on the person.

A candidate who is early in their career might gladly make that trade because of the opportunity, the company, or what they'll learn. Someone with a growing family might look at those same six hours completely differently. Another person might prefer being in the office five days a week anyway. Because of these differences, we can’t assume one person’s values will apply to all.

A Great Manager Has Real Value

I've been privileged to work for great managers, and I've worked for some who weren't so great. The difference between the two has probably had as much impact on how I've felt about a job as almost anything else. A great manager builds trust and gives you room to do your job. They give you honest feedback and advocate for you. They give you opportunities to stretch and don't make you afraid to make a mistake.

How much is that worth?

I've seen people leave jobs for less money because they wanted to get away from a bad environment. I've also seen people turn down more money because they liked their manager, believed in the company’s mission, or didn't want to give up what they already had.

When you look at pay strictly through total direct comp, those decisions can seem irrational. Crazy, even. However, when you look at the entire experience of working somewhere, they make a lot more sense.

This Doesn't Mean Companies Can Pay Less

That said, companies need to be cautious with this idea. Having a great culture isn't an excuse to pay below market rate. Neither is having a compelling mission, unlimited PTO, free food, or a flexible work environment.

I've worked for companies where the mission meant a lot to me. It made the work more rewarding, the grind more palatable, and at the end of the day, more meaningful. But that doesn't mean employees should have to accept significantly less money because they believe in what the company is doing. There still needs to be a baseline of fair compensation. When the baseline is competitive, that’s when these intangibles make the difference between an "accept" or "decline."

Hiring Managers Should Know What Else They're Offering

I think this is where many companies miss an opportunity in recruiting. They know the salary range, the bonus structure, and they can walk candidates through the benefits package. But if I asked, "Why would someone choose this job over another one that pays roughly the same?" I'm not sure every hiring manager in the company could provide a consistent answer.

Maybe you have an incredible leader running the team. Maybe people get exposure to unique things they wouldn't get somewhere else. Maybe employees have a ton of autonomy. Maybe people really do leave at 5:00 and aren't expected to answer emails all night. Maybe the company promotes heavily from within.

Those are all meaningful reasons to work somewhere. Assuming they are true, recruiters should understand them and hiring managers should be talking about them.

Compensation Is Personal

Two people can look at the exact same offer and assign a completely different value to it.

One person might focus on the money while another might focus on flexibility. Similarly, someone else might take less money for an opportunity that could dramatically accelerate their career. Another person might prioritize meaningful work or a great manager over maximizing their compensation.

None of those priorities are necessarily right or wrong. The important thing is understanding what you're getting in exchange for your time, because ultimately that's what a job is.

When I think about the best jobs I’ve had, compensation mattered. But the things I remember most weren’t the salary or the bonus. I remember the people, the opportunities, the trust, and whether I felt like the work meant something.

Companies competing for great people should understand what they’re offering beyond the paycheck. Pay people fairly, absolutely. But once you do, some of the things that are hardest to put a dollar amount on may be the very things that set you apart.