You’re ready to move onward and upward in your career and you’ve received some pretty attractive offers. That’s so great! But now what? First things first, pause, take a breath and congratulate yourself on winning over some prospective employers.
Now, when considering a job offer, it’s essential to look well beyond the figure that will appear on your regular pay stub. When it comes to how to evaluate a job opportunity, you’ll want to assess a host of job offer considerations like compatibility, benefits, perks, career advancement prospects, and any potential costs you might incur. Most importantly, you want to figure out who has the best coffee and will there be snacks (kidding, sort of).
In this article, we’ll guide you through the process of how to evaluate a job offer thoroughly. By carefully evaluating job offer considerations, you can make an informed decision that aligns with your long-term goals and career ambitions.
Getting Starting With A Job Offer
What are the compensation components of a job offer?
To fully evaluate your offer, you'll want to weigh the importance and value of salary, bonuses, stock compensation, health insurance, retirement benefits, paid time off, and various other wellness and quality of life benefits and perks.
What should I consider when evaluating a job offer?
Looking at your base salary is only the starting point. The next step is to set your emotions aside and look at the full picture, including the location of your prospective employer and how you'll get there.
Think about whether the company is a good fit for you in terms of both your career goals and personal values as well as your overall health and well-being.
Thoroughly review offer documents and contracts so you understand the terms of your health plan, retirement plan, and paid time off.
Do you have any out-of-the-box tips for making an informed decision?
Know your own value. The company already wants you, which makes this the time to negotiate. Consider the top three benefits most valuable to you and be willing to ask for what you need.
Don't be afraid to speak with employees in different areas of the company to get a full picture of what it’s like to work there.
Factors To Consider When Evaluating A Job Offer
If you are offered a job, what should you consider? While receiving a job offer is exciting, it’s in your best interest to stop and reflect before making a decision. Set your emotions aside and take a little time to honestly and objectively assess the offer, considering its implications on your overall well-being and career trajectory.
It’s important to remember that you can’t be overinformed when it comes to a compensation package from a prospective employer. Not only should you ask about everything that’s included, you should also find out about things important to you that may not be spelled out in your offer. You don’t want to start a new job only to realize that while the pay is good, your happiness and values may be compromised.
The Company
When evaluating a job offer, remember that your prospective employer is asking you to enter into a relationship with them, so you definitely want to assess compatibility. Find out if the company’s values, location, growth opportunities, and organizational culture align with your value system and future aspirations.
Job offer considerations go well beyond compensation, so it’s valuable to find out if the company’s principles align with your personal and professional beliefs, and whether its culture promotes collaboration, innovation, and employee well-being.
Location matters a lot, too. When scoping out where the company is located, consider your commuting options and determine if you’ll be taking on additional expenses. Difficult commutes cost you not only cash, but time, stress, and even wear and tear on your vehicle.
If accepting the job offer means relocation, look closely at moving and housing expenses, taxes, and insurance adjustments. Find out if your new employer will pay some or all of the cost to move. Most importantly, if you’re considering a move, research the company’s financial stability and market position so you have an idea of its long-term viability and growth potential.
If working from home suits you better, ask about remote work or hybrid working options. Many companies today don’t require their workers to come to the office every day, or even to live in the same city.
The Benefits And Perks
Health Insurance & Benefits
It’s astounding how many folks don’t know the specifics of the health insurance coverage they’re offered. Make sure you understand what you’re expected to pay for your premium and how much the company covers. Get into the details of deductibles, co-pays, and coverage limits and how they apply to primary care services, prescription medication, specialists, as well as urgent care and emergency room visits. Find out if vision and dental are included and what the out-of-pocket costs are for these services.
Many companies also offer health savings accounts (HSAs) or flexible spending accounts (FSAs) to help you manage medical expenses and save on taxes.
To save on insurance expenses, some companies offer wellness benefits such as gym memberships, weight management programs, and financial incentives for adopting healthy habits and completing health assessments.
Paid Time Off (PTO)
Take a close look at the PTO policy and whether it will meet your needs and expectations. You’ll want to know how much PTO you can accrue each year and the policies on unused days. Be sure to ask about the availability and limitations of parental leave, sick leave, and bereavement leave.
Family Benefits
Does the company acknowledge all families regardless of blood or legal relation? It’s valuable to ask about benefits for same-sex and domestic partners, as well as adult dependents. Some companies offer benefits related to adoption, fertility treatments, and parental leave beyond six weeks. If you have or plan to have children, ask about child care assistance, on-site facilities, and emergency childcare services.
Work-Life Balance
Flexible work hours and the ability to work remotely can help you deliver on your responsibilities while finding time to enjoy the life you’re working to pay for. Flexibility is about when, where, and how you work, allowing you to organize tasks efficiently, boost productivity, and enhance your overall well-being.
Student Loan Repayment
More and more companies are offering benefits around student loans including student loan assistance, refinancing assistance, payment matching, and debt counseling services. In some cases, an employer may even offer to pay off some or all of your loans.
Additional Perks
Inquire about additional perks such as free lunches and snacks, on-site services, company cars, or discounts on products and services.
The Compensation
Base Salary
Your base salary is what shows up in your bank account on a recurring basis, providing stability and predictability in your income. To make sure your offer is on par with industry standards and your experience level, research the going rate for your role and location using resources like Glassdoor and Salary.com. If your compensation package also includes bonuses or stock-based compensation, make sure that your base salary meets all of your needs. Your salary is the cake, the rest is the icing.
Bonuses
If bonuses are offered in your compensation package, find out how to earn them and when you’ll get paid. Also, find out how the bonuses are paid, whether in cash or stock-based instruments. If your bonus is a significant enough portion of your total compensation, be confident that you can budget prudently.
Equity
Equity ownership through stock options, restricted stock units (RSUs), or employee stock purchase plans (ESPP) can be a valuable and, depending on the industry, significant component of your compensation package. Evaluate the potential value of equity offerings and thoroughly read your compensation and grant documents so you can weigh the long-term implications of equity ownership. Remember that stock-based compensation is not guaranteed income and comes with risk.
Retirement
Retirement benefits allow you to start securing your financial future. The most common retirement benefit is your company’s contribution to your 401(k). Many companies offer a matching contribution, usually in the range of 3% to 6% of your salary. Be sure to review all offer documents to understand the structure of the retirement plan offered, and try to maximize your contributions to take full advantage of the matching funds.
The Bottom Line
When a company extends an employment offer, they value what you’ll bring to the table so it’s important for you to know your own value, too. Once you’ve thoroughly reviewed your offer, you can negotiate the benefits most important to you to suit your specific situation, career and financial goals, and personal values. Compensation isn’t simply about the amount that drops into your bank account every month; it’s about your ability to save for the future, potential for career advancement, reassurance that you can take care of your specific needs, all while creating space for you to live your best life. And remember, whatever offers you choose to decline, be polite.
Conclusion
Starting a new job is a significant transition. Your job satisfaction and financial success hinges on thoughtful attention to detail. Take the time to fine-tune your budget, set up regular credit monitoring, smoothly transition your retirement plan, and gain a thorough understanding of all offered benefits. Review investment options, taxation considerations, and retirement goals to make informed decisions about your financial future.
To optimize your retirement savings strategy and manage stock-based compensation, consider working with a financial planner. Your financial stability and success in your new role are wrapped up together, so be proactive and set yourself up for both professional and financial wins.
For 25 years, we have worked to perfect The Integrated Financial Advantage™, a unique financial planning approach crafted to provide clients with tailored guidance, enabling them to lead with intention both tomorrow and today.
