Job offers

Understand the components

Do your research to know what a job offer might include for this type of position. A job offer package for a good quality position typically offers a lot more than just the base salary.

These components may include:

• Base Salary: The fixed amount you'll be paid regularly.
• Benefits: Health insurance, dental/vision coverage, retirement plans, and other funding or services.
• Bonuses: One-time or recurring monetary bonuses based on performance or company profits.
• Stock Options/Equity: Ownership stake in the company, offering potential for financial growth.
• Paid Time Off (PTO): Vacation days, sick leave, and holidays.
• Transportation: Parking, passes for public transportation, carpooling for bike riding incentives, paid mileage when you use your car for work activities. 
• Professional Development: Opportunities for training, workshops, or further education, including tuition reimbursement.
• Work-Life Balance: Flexible hours, remote work options, wellness programs, child care and other family-friendly policies.
• Relocation Assistance: Support for moving expenses if the job requires relocation.

What are your priorities?

Reflect on your personal and professional priorities. What matters most to you? Consider factors like career growth opportunities, work-life balance, company culture, and location preferences. Does the job offer include components that are important to you or will be in a few years? For example: Paid child care might be an important benefit for someone who plans to have children soon. Free parking is only of value to employees with cars.

Evaluate benefits and resources

Look beyond the salary to assess the value of the components being offered. Consider the quality and coverage of health insurance, retirement plans, and any additional perks like gym memberships, wellness programs, or company-paid travel.

Calculate the monetary value of these benefits to compare offers effectively. Use this Offer Evaluation spreadsheet to fully map out the details of the job offer.

Example: Someone with a chronic health condition estimates that they spend $9,000 on medical bills per year. They value a health insurance benefit that has a low $2,000 out of pocket maximum and lower deductibles. In this scenario, this job is saving them $7,000/year (without factoring in employee contributions to the health plan).

Consider long-term career growth

Evaluate the potential for long-term growth and advancement within the company. Research the company's track record for promoting from within, career development programs, professional development funds, and opportunities for skill enhancement. Contact your hiring manager or recruiter if you are looking for details. Or, ask these questions in the interview process.

Understand bonuses and incentives

Take a close look at bonus structures and incentives. Understand how bonuses are determined – whether they're performance-based, profit-sharing, or discretionary. Factor in the likelihood of achieving these bonuses and how they contribute to your overall compensation.

Example: A graduate is given two competing job offers. One is for a medical sales rep for $80,000/year, and the other is for $60,000/year plus commission of 7% of their sales up to $200,000. When the graduate asked the hiring manager, they said that the average team member’s sales commission was $24,000/year, some members receiving more and some receiving less. This person needs to evaluate their values of financial security, competition, and work/life balance when considering this choice, realizing they are guaranteed $60,000/year but could earn much more than that.

Assess stock options or equity

If offered stock options or equity, research the company's financial health, growth projections, and market performance. Consider consulting a financial advisor to understand the potential value of these options and their tax implications.

Review paid time off policies

Evaluate the company's PTO policies to ensure they align with your personal needs and preferences. Consider factors like unlimited sick time, parental leave (if applicable), accrual rates, rollover options, and flexibility in scheduling time off.

Explore professional development opportunities

Assess the company's commitment to your professional growth. Review opportunities for training, conferences, mentorship, grad school tuition reimbursement, and skill development. Consider how these opportunities align with your career goals and aspirations. Find out if new employees are eligible for these incentives or if they become available to employees after they have been with the organization for a few years.

Evaluate wellness

Consider the company's culture.Is this an environment that has work-life balance initiatives and policies that support employee well-being? Look for flexible work arrangements, remote work options, and policies that promote physical and mental health. When job searching, take advantage of any opportunities to ask about wellness directly with employees of the company at career fairs, networking events, or during informational interviews.

Negotiate strategically

If aspects of the offer package don't meet your expectations or needs, you can negotiate. Approach negotiations as a business transaction and focus on mutually beneficial solutions. Consider negotiating not only salary but also benefits (including PTO!), bonuses, and other perks. Employers often can be more flexible with other benefits even when they can’t offer a higher salary.

Remember, evaluating a job offer is not just about the immediate financial gain but also about finding the right fit for your long-term career satisfaction and growth. The job offer and negotiation are the beginning of your relationship with the employer. By considering the full job offer package, you can make a decision that aligns with your aspirations and is a positive part of your career journey.

Have further questions about salary negotiations or job offers? Talk with a career coach.