Congratulations!! You hit the job interview out of the park and now have a job offer in hand, now what? This is your dream role with your dream employer, so you’re ready to sign on the dotted line. Not so fast!! So much of our energy is focused on getting the job, now it’s time to take a deep breath, a step back and think about the offer in its totality. Here are five factors to consider when evaluating a job offer.
SALARY
One of the most important components of your offer letter is what you will be paid. After all, you more than likely applied to a job to make a salary and not work for free. It is important to evaluate your base pay, applicable commission, bonuses, etc. Are you comfortable with the numbers? If not, determine which components of your salary can be negotiated? Typically, the base salary can be negotiated, but commission-based compensation and participation in incentive programs may not be negotiable and are oftentimes driven by larger internal policies which make negotiating a bit difficult.
There are a lot of helpful tools out there to help you evaluate if you’ve been offered a fair salary. One that I particularly like is Glassdoor’s Know Your Worth™ tool, which calculates the salary you should reasonably expect in today’s active job market based on your experience and other personal details. You can also find the salary range of current and previous employees in the same position at that company.
BENEFITS
Although salary is very important, it’s critical that you evaluate your total compensation in the context of the benefits offered. Consider the health and welfare benefits and what you’ll be paying for them. Is retirement and savings plan matching available and if so, at what rate? Is this program set up with a vesting period based on tenure or are you 100% vested in the company match from day? Are other benefits such as stock options and other stock compensation available? Also, think about additional perks that may not be outlined in the offer letter but offered to employees. For example, an on-site wellness facility, tuition reimbursement, on-site day care, and discounts at major retailers to name a few. Assess the value to each of the benefits offered to you to help determine the total compensation that you should be evaluating.
ROLE
Although total compensation is important, think about how the role you’ve been offered could impact your life. After all, you don’t want to end up in a dead-end job. You want to accept a role that you can thrive and naturally perform well in. Intangible factors such as the ability to advance your career and work life balance should be considered. You’re going to want to think about your career goals and if this role will contribute to your long-term career goals and success. Will this role make you happy or is this just another job? Ask yourself whether the role will challenge you, expose you to new experiences and enable you to grow? If not, think twice about whether this is the opportunity you should accept.
VACATION/SICK TIME/HOLIDAYS
Vacation, sick time and holidays are typically discretionary policies in most situations unless mandated by local ordinance or statute. These factors have intangible benefits that should be considered when evaluating the value of this benefit. Examine your personal situation and desires. Are the number of vacation days offered enough? Will you accrue vacation time or have your vacation time fronted at the beginning of each year? How many paid holidays are observed by the employer? Are you comfortable with the number of sick days you receive each year? Once you’ve taken an accounting of this, compare what you’ve been offered to what you currently have. If it is not enough, be prepared to negotiate. You may not have a lot of leverage with sick time and holidays, but you should certainly consider negotiating the vacation time you’ve been offered.
FLEXIBILITY
Since the pandemic, there has been a shift in what candidates expect in the way of agile working. Candidates are demanding flexible work schedules by working fully remote or hybrid. So much so, it is a huge component in accepting an offer or not for many. Considering your personal commitments to family, friends and outside activities, ask yourself, will I be allowed to work a flexible schedule? What is a typical work week like? Is there autonomy to start my day at 9am instead of 8am or will I be bound by a rigid schedule? What’s the organization culture relative to work life balance? If you desire a certain level of flexibility beyond what the offering employer provides, be prepared to negotiate in that area.
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