Chapter 9 - Got the Offer!!! Now What? (Evaluating the Job Offer)

Take a step back. We know you are tired of searching, but let's evaluate. Is this the offer you are looking for? Is the compensation acceptable? Will accepting this position give you an advantage over your current situation?

Evaluating the Job Offer

Yes I accept. Sounds perfect, right? Slow down and rationally evaluate the job offer. Go back to your "Plan of Action." What are your priorities? Does this opportunity fit into your long-term plans? Ask yourself, if you can accomplish your professional goals by accepting this position? If you are currently working, will accepting this position better your current situation? If you are unemployed, is this position a good career decision for you? Hopefully the answers are all yes.

Once you have decided that accepting this offer would be a good career move, then you need to evaluate the compensation package. What is the total package worth? The compensation package is not just the salary. You need to take into consideration the entire package.

The entire package includes salary, health insurance (co-pay and family costs), profit sharing, stock options, bonus plans (guaranteed and contingent), 401k or pension plans, paid time off (vacation, personal, and sick days), employer perks, paid parking, expense accounts, overtime or comp time, etc. You might be surprised when you evaluate the compensation as a whole. We have seen offers where the base salaries were $5,000-$10,000 less than a candidate was expecting but the offer turned out to be worth a lot more than they anticipated.

Health insurance benefits vary from employer to employer and so does your actual costs for those benefits. Some employers pay 100% of the premium for you and your entire family for a PPO or an HMO, others pay 100% for the employee but family costs are outrageous, many only pay a portion for the employee and/or family. What is that actual cost or savings being offered by the employer through this benefit.

If your offer includes a bonus plan, is it guaranteed or contingent? Either is fine if you know what they are based on. If it is contingent, do you have control or is it based on a group effort? When are the bonus’ paid? Are you immediately eligible? Bonus plans can be a large part of your package. Our advice is to primarily consider the guaranteed bonus and any contingent bonus that you have direct control over.

Does the employer match your 401k contributions? Some employers match a portion of your contributions. The law regulates the maximum that can be contributed but it does not require an employer to match. If they do match, how much extra money can be put into your retirement plan?

Paid time off can be a valuable part of your offer too. Some employers will roll days over from year to year. Others will actually pay you for any days that you did not take each year. How many days are they offering? Is your vacation, sick, and personal days all combined in paid time off or separated? If they are separated, how many days do you actually receive?

Are there employer perks that are a value to you? Do you have a company car? Do they pay for parking? Do they offer free drinks or lunch? A company car can eliminate your car payment and maintenance cost. Parking can cost more than $100 a month in many cities. Free drinks can be worth a couple dollars every day. Lunch could be worth $5 to $10 a day.

Is there flex-time? What is the dress code? Flex-time could save you in child care expenses or save you time and gas traveling to and from work during off peak times. If the dress code is casual you could save in dry cleaning expenses.

After really looking at the entire package you should be ready to make a decision. If you want the position but the package is not acceptable to you, should you negotiate the offer?

Should you negotiate the offer? Scary decision? Some times you should, but before deciding to negotiate you need to take some things into consideration. Did they give you a fair offer? Is the offer within the range that you told them? Are you prepared to lose the offer that is on the table?

Is the offer that is on the table appropriate for the position and for the skill set you possess? Sometimes your value to the employer may be different than you had anticipated. They may only be interested in some of the skills you possess. Is that OK? Only you can decide. If you feel the offer is fair then you probably should not negotiate.

What salary range did you originally give them? Is the offer within that range? If the salary they offered is within the range that you had originally given them then you must justify why you would negotiate. If it is not within the range, be sure you have considered the total package. Have things changed based on total compensation? Were the benefit costs more or less than you had anticipated?

Whether or not to negotiate an offer is a tough decision. Some employers put their best offer out first and if you are not ready to accept that offer then they move on. Other employers leave a little room for negotiations. Unfortunately, unless you have an insightful recruiter handling the offer, you have no way of knowing whether an employer will negotiate.

If you decide to negotiate, you should be prepared to walk away.

When negotiating, remember that a negotiation often involves give and take. Be creative and keep an open mind to the employer's suggestions. You might ask for more vacation time and keep the salary the same. You might offer to take the salary they offered but request a 90-day financial review. In any case be prepared to politely defend you reasons for negotiating. For example: If the benefits cost more than you anticipated but the salary was in your range, you can simply explain the difference and justify your reason.

Comparing Your Options

If you are fortunate enough to have multiple opportunities, how do you decide? Seldom will you find an employer that has everything you are looking for. One has a better location, one has a better environment or better hours, still another has a more exciting product. What should you do?

Again, you should take the same steps as you did when you were evaluating any offer. Go back to your Plan of Action. What are your priorities? Which opportunity fits into your long-term plans? Ask yourself, in which position could you accomplish your professional goals? You could make a pro’s and con’s list for each. Make sure your emotions are balanced with your rationale. Objectively, which would be the best move for you? Make a decision that you are happy with and that you can also live with.