Home Self-Reliance Planning Household Management Work and Career Evaluating a Job Offer

Work and Career · Chapter 3

Evaluating a job offer

Salary is one number in a much longer list. Compare the whole employment package before saying yes.

Beyond base pay

Compensation is more than salary

A job offer can include hourly wage or salary, overtime eligibility, shift differentials, commissions, tips, bonuses, incentive pay, health insurance, dental and vision coverage, a retirement plan with or without employer contributions, paid leave, holiday policy, disability and life insurance, training and education support, remote-work options, parking or transit benefits, and schedule flexibility. Not every employer offers each item, and the value of each item varies by household.

A higher base salary does not automatically mean a better offer. A job paying $5,000 more per year but requiring a longer commute, paid parking, additional child care, meals away from home, or a second vehicle can cost the household more than it adds. Schedule matters too: unpredictable shifts, frequent travel, and unpaid overtime consume time that has its own household value.

Get the offer in writing

Before leaving another job or making a large household change, confirm the material offer terms: title, employer, start date, location, pay, schedule, reporting relationship, benefits eligibility, and any contingencies. An offer letter is not necessarily a complete employment contract. Do not overstate its legal effect. But having the basic terms in writing protects against the kind of misunderstanding that surfaces on the first day.

Benefits that matter

Health coverage and retirement

Use the Summary of Benefits and Coverage

HealthCare.gov and the Department of Labor explain that job-based health plans provide a Summary of Benefits and Coverage designed to help consumers compare costs, coverage, and features. When evaluating an offer, ask for the SBC and check the employee premium, dependent premium, deductible, out-of-pocket limit, network, prescription coverage, and when coverage begins. A plan with a lower premium may not be cheaper for a household with regular prescriptions, specialists, high expected care, or out-of-network needs.

Read the retirement plan documents

The Department of Labor says the Summary Plan Description explains important retirement-plan rules including eligibility, benefit calculation, vesting, distribution, and claims procedures. Do not infer from "401(k) offered" that the plan has a match, immediate eligibility, immediate vesting, or low fees. Read the SPD or plan disclosure.

Your contributions vs. employer contributions

The Department of Labor states that in a defined-contribution plan such as a 401(k), employees are generally 100 percent vested in their own contributions and earnings on those contributions. Your money is yours.

Employer matching or other employer contributions may be subject to a plan-specific vesting schedule. A three-year cliff vesting schedule means you receive none of the employer's contributions if you leave before three years and all of them if you stay. A six-year graded schedule might vest 20 percent per year starting in year two. The vesting schedule is in the plan documents. Check it before counting employer contributions as part of your compensation.

Paid leave is not universally required

The Department of Labor states that the Fair Labor Standards Act does not generally require paid vacation, paid sick leave, holiday pay, or personal leave for private-sector employees. These benefits are generally matters of employer agreement, while state and local laws and other federal laws may create specific rights. When comparing offers, check the employer's actual leave policy and the laws that apply where you will work. Do not assume that every full-time position comes with two weeks of paid vacation.

Side by side

Compare offers as complete packages

The point is not to convert every benefit to a fake precise dollar value. The point is to prevent salary from hiding the rest of the job. Use this framework to lay two offers side by side and see which one actually works better for your household.

Item Offer A Offer B
Base pay
Expected hours per week
Overtime eligibility
Schedule
Commute (time and cost)
Health premium (employee)
Health deductible / out-of-pocket max
Retirement match or contribution
Vesting schedule
Paid leave (vacation, sick, personal)
Training or education support
Travel requirements
Household care cost created
Start date

Continue

Next chapters

Chapter 4

Workplace Rights and Classification

Know the federal floor for wages, overtime, classification, and protections.

Chapter 5

Workplace Expectations and Performance

Learn what the employer actually expects and track your accomplishments.

Sources

Where this guidance comes from