How to Evaluate a Job Offer?
Let’s assume your employment interview went well, and there’s sincere and mutual interest on both sides. You now need to decide two things: first, whether the new position is right for you; and if so, what sort of offer you’d be willing to accept. To help in the decision-making process, take the following test as a way to compare the two positions.
Position Comparison Guide
Directions: Compare the new job with what you already have.
|Old Job||New Job||Element Under Consideration|
|Freedom to implement ideas|
|Ability to affect change|
|Challenge of tasks|
|Ability to meet expectations|
|Access to professional development|
|Professional growth potential|
|Starting salary, benefits, perks|
|Rapport with co-workers|
|Rapport with management|
|Comfort with corporate culture|
|Other considerations (specify)|
|Total score: New job vs. old job|
Your Next Job: What Does it Really Pay?
Compensation will be a key factor in your decision whether to accept a new position. However, few people take the time to really understand their economic choices, mostly because there are so many hidden factors, such as cost of living, benefits, and so forth. To help you put your choices into perspective, use the following guide to evaluate your prospective compensation package with what you’re currently earning.
Position Comparison Guide
Directions: Compare the economics of the old and new job.
|Old Job||New Job||Element Under Consideration|
|$||$||Profit sharing potential|
|$||$||Value of stock or equity|
|$||$||Cost of living differences|
|$||$||State, local taxes|
|$||$||Other expenses (specify)|
|$||$||$ Difference (+/-)|
Regardless of where compensation ranks on your list of priorities, it’s a good idea to know what you may be getting into when faced with a career decision.
Salary Negotiation Techniques
The best approach to putting the deal together is to decide whether you want the job before an offer is extended. This allows you to clarify whether the job suits your needs. Unless you’re motivated solely by money, it’s doubtful a few extra dollars will turn a bad job into a good one.
The term “bottom line” refers to the amount of compensation you feel is absolutely necessary to accept the job offer. If, for example, you really want $76,000 but would think about $75,000 or settle for $74,000, then you haven’t established your bottom line. The bottom line is one dollar more than the figure you would positively walk away from. Setting a bottom line clarifies your sense of worth, and helps avoid an unpredictable bargaining session.
I recommend against “negotiating” an offer in the classic sense, where the company makes a proposal, you counter it, they counter your counter, and so on. While this type of back-and-forth format may be customary for negotiating a residential real estate deal, job offers should be handled in a more straightforward manner.
Here’s how: Determine your bottom line in advance, and wait for the offer. If the company offers you more than your bottom line, great. If they offer you less, then you have the option of turning the offer down or revealing to them your bottom line as a condition of acceptance. At that point, they can raise the ante or walk away. And once the bottom line is known, you can avoid the haggling that so often causes aggravation, disappointment, or hurt feelings.
By determining your own acceptance conditions in advance, you’ll never be accused of negotiating in bad faith or of being indecisive. Whether you’re representing yourself or working with a recruiter, learning to differentiate between financial fact and fantasy will facilitate the job changing process.
If you feel the need to justify your salary request, you can itemize any loss of income that may result from a differential in benefits, geographic location, car expenses, and so forth.
Often, there are considerations aside from money that need to be satisfied before an offer can be accepted. Factors such as the new position title, review periods, work schedule, vacation allotment, and promotion opportunities are important, and should be looked at carefully.
You can use the this approach to quantify each consideration or “point” you need to satisfy as a condition for acceptance. Once you and the company settle on each point, you won’t need to go back later to negotiate “one more thing.” Knowing your bottom line puts you in a better position to get what you want, since you’ve established a set of quantifiable conditions needed for acceptance.
The Strategic Case for Changing Jobs
There are many deeply personal reasons to change your employment situation. However, from a purely strategic point of view, there are four good reasons to change jobs within the same (or similar) industry three times during your first ten years of employment:
Reason #1: Changing jobs gives you a broader base of experience: After about three years, you’ve learned most of what you’re going to know about how to do your job. Therefore, over a ten year period, you gain more experience from “three times 90 percent” than “one times 100 percent.”
Reason #2: A more varied background creates a greater demand for your skills: Depth of experience means you’re more valuable to a larger number of employers. You’re not only familiar with your current company’s product, service, procedures, quality programs, inventory system, and so forth; you bring with you the expertise you’ve gained from your prior employment with other companies.
Reason #3: A job change results in an accelerated promotion cycle: Each time you make a change, you bump up a notch on the promotion ladder. You jump, for example, from project engineer to senior project engineer; or national sales manager to vice president of sales and marketing.
Reason #4: More responsibility leads to greater earning power: A promotion is usually accompanied by a salary increase. And since you’re being promoted faster, your salary grows at a quicker pace, sort of like compounding the interest you’d earn on a certificate of deposit.
Many people view a job change as a way of promoting themselves to a better position. And in most cases, I would agree. However, you should always be sure your new job offers you the means to satisfy your values. While there’s no denying the strategic virtues of selective job changing for the purpose of career leverage, you want to make sure the path you take will lead you where you really want to go.
For instance, there’s no reason to change jobs for more money if it’ll make you unhappy to the point of distraction. In fact, I’ve found that money usually has no influence on a career decision unless it materially affects your lifestyle or self-identity.
To me, the “best” job is one in which your values are being satisfied most effectively. If career growth and advancement are your primary goals, and they’re represented by how much you earn, then the job that pays the most money is the “better” job.
Career Strategy: It Pays to Diversify
Would you dump your life savings—every single dollar—into a single stock? Probably not; it’s far too risky to put all your eggs in one investment basket.
And yet, you’d be surprised how many people manage their careers with a single-stock mindset. They toil away, year after year, investing their talents in a narrow field of interest.
Until recently, this approach made a lot of sense. Conventional wisdom dictates that if you do one thing really well, you’ll never be out of a job.
But times have changed, and so have strategies. While it’s still true that a solid career is built on a foundation of position-specific expertise, it’s become increasingly important to maintain a balanced portfolio.
When employers look for talent, they typically settle for people with the proficiency to perform certain tasks. But what they really want—especially in today’s hyper-competitive market—is an adaptable breed of cat, whose broad-based set of skills crosses over into a variety of disciplines.
Want proof? Poke your head into any meeting room in which star performers are present. You’re likely to hear a sales manager exploring the potential of XML technology; or an engineer debating the virtues of a strategic alliance; or a CFO pondering the benefits of a co-branding opportunity.
In other words, as organizations flatten, more is expected from each individual contributor. Which means that versatility is not only fashionable, it’s become a key ingredient in modern-day career progression.
Now, I’m not suggesting you spread yourself so thin as to master nothing at all. But in order to reach top-percentile status in today’s rugged job market, you’ll need an expanded arsenal of skills to deploy.
To round out your resume, look for areas of weakness (or “blind spots”), and try to develop them into strengths. For example, if you’re a design engineer and you want to improve your company’s product or advance its market position, here are some issues to consider:
By gaining knowledge in areas that were formerly considered the domain of “somebody else,” you’ll increase your overall market value. The more you can offer a multiple spectrum of knowledge—rather than a single color of skill—the less likely you’ll be to paint yourself into a corner.