Factors to Consider Before Accepting a Job Offer
When you’re considering a job offer, there’s more to think about than just how much you are going to be paid. Salary is, of course, important, and it could be the deciding factor in accepting a job offer.
However, the other parts of a compensation package are almost as important. Your paycheck will cover your monthly bills, but you also need to consider employee benefits, perks and the non-tangible things that make a job a good one.
Why is it important to consider a job offer
When you receive a job offer, it’s useful to evaluate the position and company before accepting or declining it. Here are several reasons why it’s important to consider a job offer:
• Provides clarity: Researching a company before deciding on a job offer can provide insight into the important aspects of a company, like their culture, management and goals.
• Ensures it’s the right choice: Carefully considering a job offer can ensure that you make the right choice and lowers the chance of accepting a position that isn’t the right fit for you.
• Highlights challenges: Job offers typically highlight the positives of a job, so researching the position can outline any challenges that you may face in a role, which can better prepare you if you accept the job.
Evaluate the Job Offer
Before you say yes, you’ll take the job, consider the entire compensation package – salary, benefits, perks, work environment, the schedule and the hours. Also, consider the job description and if you would be happy working at this job with this company.
Weigh the pros and cons and take some time to think about the offer. You don’t have to say yes right away if you are going to accept. Ask the employer when they need a response by. If you have two offers to consider, use a comparison list to help you decide which one to accept.
The first consideration when reviewing a new job offer is usually the salary or hourly wage. An employer often provides this information to you when making the offer. It’s important to assess the income your potential employer offers and compare it to your financial needs. You may be able to supplement an initial offer by negotiating a higher rate.
Evaluate Employee Benefits and Perks
Employee benefits, including health insurance, retirement plans, vacation and sick leave, and life and disability insurance can represent up to 30% of your compensation package. It’s important to take the time to review what you’re offered to make sure it’s what you and your family need at this stage of your working life.
Your salary is not the only way an employer may choose to provide financial benefits. Supplemental benefits packages may provide substantial value. Benefits can include financial incentives, such as stock options and retirement plans, as well as indirect financial benefits, such as health insurance. Vacation pay, sick pay and family leave are other items that may appear in a benefits package. When comparing two job offers from different companies, if one contains a more generous benefits package, it may be the more financially valuable offer regardless of if it has a higher base salary.
Get a Good Retirement Plan
Not all retirement plans are created equal. A great retirement plan can significantly increase the value of a job offer, and may even trump higher salary at another employer. Review these guidelines for what constitutes a good retirement plan, so you can compare what you may have already with what you’re being offered.
How you get to work each day can play a large part in your enjoyment of a job and daily life. A job with a short commute may allow you to have more free time, for example, but a longer commute to a job you greatly enjoy may be worthwhile. You might also consider the type of commute, as you may prefer using public transit, driving or riding a bike, and different job locations may be better suited to different options.
How to Accept or Decline a Job Offer
Once you have made a decision on whether to accept or decline the offer, it’s time to let the employer know. Take the time to formally accept or turn down the position, and do it gracefully so you don’t burn any bridges with the prospective employer.
It’s important to find a job that allows you to be happy in your daily life, and the duties and responsibilities of your job can be one of the most important factors in maintaining your professional happiness. An ideal job offers a variety of responsibilities that you’re interested in, providing enough work to keep you engaged while still holding you to reasonable expectations. Consider both the challenge your potential duties pose and whether they provide work you find interesting and can enjoy completing each week.
Your official title at a company can be a meaningful consideration when assessing a job offer. Your job title provides stature and can also help to clarify your position within an organization. Attaining a position with a higher title than your previous job shows career progression and can be beneficial for future promotions or job searches.
Once you have considered all the details of your offer, take another look at the salary. Is it enough? Would you rather be earning more? Is there room to negotiate? If you can’t get by on the paycheck, it’s going to be a problem regardless of how great the benefits are.
Evaluate Stock Options
Stock options give employees the ability to buy shares of company stock at a certain price, within a certain period of time.They can be lucrative, especially in growth industries. When considering or comparing a compensation package with stock option benefits, be sure you understand exactly how stock options work and what they might be worth in the future.
If you’re not sure about the salary, consider creating a budget so you’ll know exactly how far your paycheck will stretch each month.