Comparing Job Offers

During your job search, you may be lucky enough to receive multiple job offers, and when you do, sometimes it’s not easy to make a decision.

Certainly, if you receive a job offer from the company of your dreams, the decision is less difficult. But that’s not always the case. What if you receive job offers from three companies for a similar position? Which offer should you choose?  Do you simply take the offer with the highest pay so that you can finally move out of your old apartment and buy a new car? Or do you consider other factors?

In order to make a good decision, analyze the offers not only in terms of pay but other benefits and perks; in other words, examine the total compensation package. While salary may seem like the most important aspect of the offer in the immediate future, often you will discover other benefits or perks which can take precedence over money in the long term.

It’s easier to make a decision once you have considered the many different factors of an offer. Take the time to consider these other factors.  Some may be more important than others depending on your lifestyle, needs, and career goals. During the consideration process for each job, figure out how much you will earn, versus how much you will need to spend out of pocket.

As you evaluate each job offer, take the following factors into consideration:

Health Insurance (Medical, Dental, Vision)

Will the company pay 100% of your insurance premium or will you have to contribute to the plan? If so, how much? Moreover, does the company offer a flexible spending plan, for example an IRS PLAN 125/CAFETERIA PLAN in which you can designate pre-tax dollars for medical expenses?

Paid Holidays

Not every company/industry offers the same holidays. For example, some companies may ask employees to work on Christmas Eve Day or the Friday after Thanksgiving. If having certain holidays off to relax, travel or spend time with family or friends is important to you, then make sure you know which holidays and how many total paid holidays you will receive each year.

Vacation/Sick/Personal Time Off (PTO)

Not all companies offer the same number of days off. For example, one company may offer 12 PTO days yearly. (PTO may include both vacation and sick days). Other companies may offer 2 weeks’ vacation plus 7 sick days. Be sure you know exactly what each firm offers.

Flexible Work Hours

If you have a long commute, or don’t want to get on the freeway or metro during rush hour, you probably would like a more flexible schedule. Carefully examine which company is rigid about its works hours and which one allows employees more flexibility.

Professional Development/Education Reimbursement

Do you want to pursue professional development activities such as getting a license or specialty certification? How about more formal education? How much will you save if the company pays for you?  Ask if the company has reimbursement programs for these activities.

Retirement Plans/Profit Sharing/Bonus Programs/Stock Options

Which company offers retirement plans vs. retirement plans with matching contributions? Are there opportunities for profit sharing or bonus programs? How about company stocks? If so, what additional monies will you earn?

Opportunities for Advancement

Will you be able to grow with the company? Will the firm offer opportunities for new learning and advancement? Will you be able to transition into more senior roles in the near future?

Location of Firm/Parking and Ride Share Reimbursement

How far will you have to commute to work? How much will you have to spend each month on transportation costs? Will you have to pay monthly parking fees?  Make sure you know exactly your out-of-pocket costs for commuting and other forms of transportation.

Company Culture/People

Knowing that you will have to spend 40+ hours a week at work, do you like the culture of the company? How about the manager you will be reporting to? Co-workers? Make sure you get a good feel for the company culture and its people before accepting an employment offer.

Company/Industry Future

Which company is in a growing industry and provides better stability and opportunities for your future?

Other Perks

Some companies go beyond the general benefits and provide generous perks. They can help you save time and money as well as provide additional opportunities. These perks may include:

• On-site fitness center
• On-site cafeteria
• On-site dry cleaner
• On-site child care
• Employee referral program with bonus
• Product/service discounts
• Company car
• Paid travel business opportunities
• Relocation packages

Once you compare the companies based on ALL the benefits and perks, you may be surprised to find that the one you thought was a better deal is not such a great deal.

Note: Some companies do not discuss benefits during the interview process; nevertheless, be sure to ask, but in such a way so that the interviewer doesn’t get the idea that you are only interested in benefits and perks.

Links to Good Reads on Comparing Job Offers

Comparing Two or More Job Offers

In addition to offering more reasons to consider when making employment decisions, Dr. Randall S. Hansen, founder of Quintessential Careers, provides a mock financial analysis table, comparing three job offers with examples and numbers … read more

16 Factors to Consider When Comparing Two Or More Job Offers

Writer Prakhar Jain offers additional factors to consider when making your employment decision. The author advises, “This process, although time consuming, can help offset biases and inconsistencies that too often creep into the job selection process. It is advisable to form a chart or a MS Excel sheet with these factors for an easy comparative analysis side by side.” … read more

Checklist for Evaluating a Job Offer

Career expert Alison Doyle makes an extremely valuable point in this article about assessing job comparisons when she states, “Listen to your inner voice. Our instincts are usually right, even if we can't come up with a concrete, rational explanation for them … read more