EARN

Comparing Job Offers

The world is starting to know your name. You’ve nailed some interviews. You’ve gotten more than one job offer. You have the power now, to choose which path will have the privilege of bearing your footsteps. You are a shooting star.

But, before you burn through the galaxy, let’s handle some earthly affairs. Choosing the right job offer, when you’re blessed with choices, is no small thing. Like shopping for a car or a home, sometimes a side-by-side comparison is needed to give you the clarity and confidence to step forward.

When comparing multiple job offers, evaluate each job in terms of:

·         fit to your values and priorities

·         pay vs. cost-of-living

·         employee benefits

Evaluate your values and priorities. Consider which job offer best matches your values and career goals. Do you want to live near your family (or far far away…maybe you have your reasons, we’re not judging)? Do you want a more flexible work schedule that allows you to travel, be with family, or pursue other interests? Or are you ready to work long days, to start building wealth for the long run? Consider which job fits best with your career aspirations.

To decide what's most valuable to you in a job offer:

Write down a list of 3-5 things you most want in any job right now. Sites like lifevalues.org can help you think it through. Make it very personal to you. It could be things like:

·         A supervisor who’s a good “teacher” and will make the time to mentor me

·         I need to be in South Dakota near my family farm

·         I want to get a “taste” of lots of different tasks so I’m able to adapt later

·         The organization’s culture should fit my commitment to the environment

·         I need to begin becoming an expert in corporate finance

·         My pay needs to help me pay down $10000 of student debt this year!

Whatever you choose…Assign some points to each category, so they total up to 100. Maybe it’s 20 points for type of work, 30 for ideal location, 25 for having the right mentor/supervisor, and 25 for pay.

Then think about each job offer in terms of how well they meet those needs. Maybe one job is a 21/25 on pay, but a 30/30 on location. Another is 25/25 on pay, but 20/30 location. You can do the math to see who wins.

And then, if something inside tells you the model didn’t work, re-do your category scoring and start over, or throw out the model and just follow your heart.

You’ve worked hard in school to be in this position – now, it’s all up to you. 

Compare pay vs. cost-of-living. Salary is a key component of any job offer. To evaluate a salary offered by an employer, compare it to salary offers for comparable positions in that field and/or industry.

Investigate salary and pay rate information on websites such as Glassdoor, PayScale, and Salary.com. Some sites also have employee reviews, which can reveal questions worth considering about culture, career growth, and employee satisfaction at your potential employer.

Career counselors at the university may be able to connect you with alumni who have worked in your target industry or with the potential employers. Family or friends may know contacts with experience at your target employers too.

When comparing pay rates associated with multiple job offers, you will want to consider:

·         The specific job responsibilities tied to the pay rate

·         The number of hours an employer expects you to work each week, and whether the job pays overtime or provides some other reward for extra hours worked

·         Any work travel requirements and how travel expenses are covered

·         The salary review process of each employer – how often do salaries get reviewed (and increased?)

·         Any “variable pay” – many companies offer employees annual bonuses when the company has a good year

When you understand the salary offer, you’re (only) halfway there. Now let’s work on the cost of living. Online resources can help you calculate and compare cost-of-living across multiple cities. Point blank, $50000 of salary in Chattanooga, Tennessee goes MUCH farther than $50000 in San Francisco, because rent, food, utilities, and insurance will all cost more in that City by the Bay.

Take the time to really think through how you’ll deal with major ongoing expenses like:

·         Housing

·         Transportation

·         Health care

·         Child care (if applicable)

For some of these, the benefits the employer offers can make a difference in your total cost too. So let’s look at that topic next.

Compare the benefits. Pay is not the only thing to consider in a job offer. Some employers may compensate for a lower base salary with a rich benefits package. Many early-career workers overlook it but benefits can have a huge dollar value too!

For instance, if time is money, paid time off is free money 😊 And health insurance costs to you can vary greatly from one employer to the next. Some employers also provide financial assistance in different ways for things like child care or public transportation. So carefully consider the value of the following:

·         Employee health plan – costs, and employee’s share of cost, can vary widely

·         “Defined-contribution” retirement plans like 401(k)s – how each employer matches your retirement contributions makes a BIG difference to your future wealth – don’t overlook this one

·         Guaranteed-income annuities – some employer-sponsored annuities provide a good leg up in retirement while others are wracked with unnecessary fees – you’ve gotta “sweat the details”

·         Pension plans – while these are rarely offered in the private sector,  pension plans are very common in the Public (Governmental) sector, and can provide a lifetime income usually far surpassing what an employee contributed.  However, participation in these also reduces the income of employees while working and can often come as a surprise to new employees

·         Vacation and sick-day policies

·         Flexible hours, telecommuting, employee discounts, tuition reimbursement, or assistance paying down your student loans

·         Employer Assistance Program (EAP) – services like financial counseling 😊, legal services, or personal coaching and counseling – often for free or very low-cost

For a satisfying career path, choose a job offer that matches your career priorities, provides you with a good salary vs. cost-of-living, and provides good benefits that will make your life easier in the long run.