Evaluating a Job Offer

What should I consider when evaluating a job offer?

Once you receive a job offer, you are faced with a difficult decision and must evaluate the offer carefully. Some issues to consider when assessing a job offer include: The Organization
Background information on an organization can help you decide whether it is a good place for you to work. Factors to consider:
  • The organization’s business or activity
  • Is the organization’s business or activity in keeping with your own interests and beliefs? It will be easier to apply yourself to the work if you are enthusiastic about what the organization does.
  • The organization’s size
Large firms generally offer a greater variety of training programs and career paths, more managerial levels for advancement, and better employee benefits than small firms. Jobs in small firms, however, offer broader authority and responsibility, a closer working relationship with top management, and a chance to clearly see your contribution to the success of the organization.

The organization’s age
Should you work for a fledgling organization or one that is well established? New businesses have a high failure rate, but for many people, the excitement of helping create a company and the potential for sharing in its success more than offset the risk of job loss. On the other hand, it may also be exciting and rewarding to work for a company which already has a foothold on success.

Private versus public
Does it make any difference to you whether the company is private or public? A privately owned company may be controlled by an individual or a family, which can mean that key jobs are reserved for relatives and friends. A publicly owned company is controlled by a board of directors responsible to the stockholders. Usually, key jobs are open to anyone with talent.

Job location
Where is the job located? If it is in another city, you need to consider the cost of living, the availability of housing and transportation, and the quality of educational and recreational facilities. Even if the job is located where you are now living, consider the time and expense of commuting.

Background information on an organization can be obtained by simply telephoning its public relations office and asking for an annualreport. Press releases, company newsletters or magazines, and recruitment brochures also can be useful. Directories such as Dun & Bradstreet’s Million Dollar Directory, Standard and Poor’s Register of Corporations, Moody’s Industrial Manual, and Thomas’ Register of American Manufacturers, are generally available at your university or public libraries and these can be a great help as well.
The Nature of the Work
Even if everything else about the job is good, you will be unhappy if you dislike the day-to-day-work. Determining in advance whether you will like the work may be difficult. However, the more you find out about it before accepting or rejecting the offer, the more likely you are to make the right choice. Some things to consider:
  • Does the work match your interests and make good use of your skills? (The duties and responsibilities of the job should be explained in enough detail to answer this question.)
  • How important is the job in this company? (An understanding of where you fit in the organization and how you will be contributing to its overall objectives should give you an idea of the job’s importance.)
  • What about your potential boss and co-workers? (Are you comfortable with the person you will be reporting to?
  • Do the other employees seem friendly and cooperative? How long do most people who enter this job stay with the company? (High turnover can mean dissatisfaction with the nature of the work or something else about the job.)
  • How about work hours? (Does the job require travel? Does the job call for irregular hours?)
  • What kind of professional development opportunities will be made available to you? (The employer should give you some idea of promotion possibilities within the organization. A good job offers you opportunities to learn new skills, increase your earnings, and rise to positions of greater authority, responsibility, and prestige. A lack of opportunities can dampen interest in the work and result in frustration and boredom.)
The Salary & Benefits
Wait for the employer to introduce these subjects. Most companies will not talk about pay until they have decided to hire you. In order to know if their offer is reasonable you need a rough estimate of what the job should pay. You may have to go to several sources for this information. Talk to friends who recently were hired in similar jobs. Ask your teachers and the staff in the college placement office about starting pay for graduates with your qualifications. Scan the help-wanted ads in newspapers.

If you are considering the salary and benefits for a job in another geographic area, make allowances for differences in the cost of living, which may be significantly higher in a large metropolitan area than in a smaller city, town, or rural area.

You should also learn the organization's policy regarding overtime. Depending on the job, you may or may not be exempt from laws requiring the employer to compensate you for overtime. Find out how many hours you will be expected to work each week and whether you receive overtime pay or compensatory time off for working more than the specified number of hours in a week.

Also take into account that the starting salary is just that, the start. Your salary should be reviewed on a regular basis—many organizations do it every 12 months. How much you can expect to earn after 1, 2, or 3 or more years? An employer should be specific about the amount of pay if it includes commissions and bonuses.

Benefits can also add a lot to your base pay, but they vary widely. Find out exactly what the benefit package includes and how much of the costs you must bear.

Check the library or your school's career center for salary surveys such as the College Placement Council Salary Survey or salary information compiled by professional associations.
What should I keep in mind when negotiating my salary?
During your initial contacts with a company, your strategy should be to keep the salary issue open, because you have no real bargaining power until you are being seriously considered for a job.

If the employer mentions a salary figure or range, don’t make the mistake of agreeing to a specific figure at this point. For example, if the employer says, “The job pays $45,000. Would that be satisfactory?” you might reply that $45,000 falls in the general range you are considering.

Employers may not name any figure at all, asking you, instead, to name the salary you have in mind. Unless you are familiar with a firm’s salary structure, throw the ball back to the interviewer. You might say, “I’m not familiar with your salary scale. What range do you think is appropriate for this position?”

If the employer names a range that is agreeable, then suggest that you think your experience would qualify you for a salary at the high end. However, if the range doesn’t meet your requirements, explain what your minimum is and why. Try to avoid a drawn-out salary discussion during the early stages of interviewing.

Don’t be afraid to be firm about your salary demand. The person who wants to hire you has done a sales job for you, convincing his/her boss why you are the best person for the job. He or she will not tend to want to change his/her mind—especially if your demands are in line with the pay scales of the field. It would reflect poorly on his/her decision-making ability.

Remember to consider both short term and long term career goals before running the risk of negotiation. If you’re making a career transition, you may not have the years of directly relevant working experience necessary to indicate to the employer you are a proven commodity. You may be perceived as a somewhat riskier hire that they are willing to take a chance on but for a little less initial investment on their part. When negotiating, try to look at it from the employer’s perspective also.
Where can I get additional help?
Career Services career counselors will be happy to answer any questions you may have about evaluating a job offer or negotiating asalary. For more information or to schedule an appointment, call 471-6700 or come by WC Hogg, 2.308.
Suggested Readings
If you would like further information on evaluating a job offer or salary negotiation, consider the following books. This is not a complete list of resources, but they are good books and most are available in Career Services.

Dynamite Salary Negotiations
Caryl R. & Ronald L. Krannich

Negotiate Your Job Offer
Mary B. Simon

The Quick Interview and Salary Negotiation Book
Michael Farr

Get More Money On Your Next Job
Lee E. Miller

Getting to Yes; Negotiating Agreement Without Giving In
Roger Fisher and William Ury