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Employers who pay less on benefits (pay less health insurance premium, pay fewer vacation days, pay less FICA, etc.) have more cash available. They could use that to pay higher salaries. I'm sure you've heard and that you actually do take into consideration the "full compensation package" when evaluating one job against another.

Also not trying to fight. "Could have paid you more" does actually happen in the right type of competitive environment -- though most employers are more likely to avoid direct salary increases to instead increase other parts of the "full compensation package". It's relatively much easier to later reduce those other things than it is to reduce direct salary, if things go sideways down the road.



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