HOW TO ASSESS A JOB OFFER

by Max Carey

Reprinted from the Winter, 1990-91 Occupational Outlook Handbook Quarterly

Congratulations! Your job search has paid off. One company has made a job

offer and you expect another one to do so soon. Have you thought about how

to assess a job offer? Fortunately, most organizations will not expect you to

accept or reject an offer on the spot. You probably will be given at least a

week to make up your mind. It may not be an easy decision. If you turn down

the job, it could be a long time before you get a better offer or even one as

good. But if you take the job and it turns out to be unsatisfactory, time

will be wasted and you will have to start looking again. Although there is

no way to take all risk out of this career decision, you will increase your

chances of making the right choice by doing a thorough evaluation of the

offer - weighing all the advantages of taking the job against all the

disadvantages.

You should begin to gather the information you need to assess

an offer before begin interviewed for a job. Try to get background

information on the organization by researching published sources. Your

knowledge of a company's products or a government agency's programs and what

you know about its problems and plans will impress interviewers and increase

your chances of being offered the job. After receiving an offer, what you

learned about the organization can help you decide whether you want to work

for it. Some published information may also be available on specific

positions; for example, government job postings give details on

qualifications, duties, and salary.

Most of what you need to know about a particular job, however, will come from

the interviews. Job hunting guides available in libraries and bookstores can

tell you how to prepare for an interview. The people who interview you will

volunteer many of the facts about the job that you will need for making a

decision. But do not count on them to tell everything without your asking.

As a part of preparing for interviews, think about what you would like to

know about a job before accepting it and make a list of questions to take

with you. This way you are more likely to come away from these talks feeling

that you have all the information needed. Do not be afraid to ask what you

need to know. Employers have complained that many jobseekers do not ask

enough questions.

This article explores issues to think about when assessing a job offer.

Will the organization be a good place to work? Will the job be interesting?

How are opportunities for advancement? Is the salary fair? If you have not

already figured out exactly what you want, this article may help

you develop a set of criteria for judging job offers. It was written

primarily for the worker who is starting a career or reentering the labor

force after a long absence. Workers who are planning a career change may

find it helpful too.

The Organization

Background information on the organization - be it a company, government

agency, or nonprofit concern - can help you decide whether it is a good place

for your to work. Factors to consider include the organization's business or

activity, financial condition, age and size. Information on growth prospects

for the industry or industries that the company represents also is important.

Here are some questions to ask:

(1) Is the organization's business or activity in keeping with your own

interests and beliefs?

Look at a company's products or services, customers, and reputation in the

industry. Look at the government or nonprofit organization's purpose and the

sources of its funds. It will be easier to apply yourself to the work if you

are enthusiastic about what the organization does.

(2) How will the size of the organization affect you?

Large employers generally have a greater variety of career paths and more

managerial levels for advancement than small employers. Large employers also

have more advanced technologies in their laboratories, offices, and

factories. However, jobs in small firms may offer broader authority and

responsibility, a closer working relationship with top management, and a

chance to see clearly your contribution to the success of the organization.

(3) Should you work for a fledging 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. It may be almost as exciting and

rewarding, however, to work for a young firm which already has a foothold on

success.

(4) Does it make any difference to you whether the company is private or

public?

A private company may be controlled by an individual or a family, which can

mean that key jobs are reserved for relatives and friends. A public company

is controlled by a board of directors responsible to the stockholders.

Anyone can buy stock in a public company.

(5) Is the organization in an industry with favorable long-term prospects?

No matter how hard you work, your job security and advancement will depend on

the company's success. The most successful firms tend to be in industries

that are growing rapidly. Of course, the fact that your company is in an

expanding field does not guarantee its success. If it does fail, however,

there may be many other firms that are growing and need people with your

experience.

(6) Does activity in the industry fluctuate with the business cycle?

If the business is cyclical, ask how these affect you. Would a slump mean

reduced earnings or even job loss? Would a recovery mean pay raises,

bonuses, and promotions?

(7) 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 in the new location. Even if the place of work

is in your area, consider the time and expense of commuting and whether it

can be done by public transportation.

(8) Where are the firm's headquarters and branches located?

Although a move may not be required now, future opportunities could depend

upon your willingness to move to these places. Ask about which

organizational functions are centralized. Find out if cost-of-living

differentials or higher salaries are paid in areas with higher housing or

transportation costs.

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 job offer, the more likely you are to make the

right choice. Ask yourself questions like the following:

(1) Does the work match your interests and make good use of your abilities?

The duties and responsibilities of the job should be explained in enough

detail to answer this question. Written job descriptions can be helpful, but

they may fail to stress what you will be expected to do most of the time.

Make sure you find out which duties are essential.

(2) How important is the job in the company?

An explanation of where you fit in the organization and how you are supposed

to contribute to its overall objectives should give an idea of the job's

importance.

(3) Will the job change frequently?

The employer may plan to move you to a different job if the need arises.

Find out whether this is a common practice and what the other jobs are like.

(4) Are you comfortable with the supervisor?

Personality conflicts can undermine your efforts to succeed. If you do not

talk with the supervisor as a part of the interview process, ask if you can

meet him/her before accepting the job.

(5) Do the other employees seem friendly and cooperative?

You may be introduced to the people who will work directly with you. Do they

seem like people with whom you would like to socialize?

(6) Does the work require travel?

If so, you should know how frequently you will be on the road and where you

will go.

(7) 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. You may not be like everyone else, but if

people usually do not stay at least a year in the job, you should know why.

Keep in mind that employers may be reluctant or unwilling to share

information that reflects unfavorably on them.

The Opportunities:

A good job offers you opportunities to grow and move up. It gives you

chances 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

company should have a training plan for you. You know what your abilities

are now. What valuable new skills does the company plan to teach you? Can

you learn as fast as your capability allows? Informal on-the-job training can

be a slow process because it usually takes a back seat to the demands of the

work. Formal classroom instruction can speed up the training and complement

the practical experience. Does the employer provide classroom training at

work? Will the employer pay all or part of the cost of job-related courses

outside work? You need opportunities to grow in the job and prepare for

advancement to a supervisory or managerial position.In a relatively short

time, you may feel that you know the job well enough to teach it to someone

else. Will you get a chance to develop teaching and supervisory abilities by

helping new employees learn?

The employer should give you some idea of promotion possibilities within the

organization. What is the next step on the career ladder? If you have to

wait for a job to become vacant before you can be promoted, how long does

this usually take? What about the steps beyond?

Employers differ on their policies regarding promotion from within the

organization. When opportunities for advancement do arise, will you compete

with applicants from outside the company? Can you apply for jobs for which

you qualify elsewhere within the organization or is mobility within the firm

limited?

Because the number of supervisory and managerial jobs in any organization is

limited, your advancement eventually will be slowed, if not stopped, by the

lack of vacant positions above you. When you have reached a plateau, will

you have freedom to grow by changing the scope of the job or by learning

different skills and taking on new tasks? What you have learned may also

prepare you for an outside move. Do many experienced employees go to other

companies? Do they leave for higher salaries? What kinds of jobs do they

get? Again, keep in mind that employers may be hesitant about divulging such

information.

The Salary and 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. Check the

library or your school's career center for salary surveys, such as the

College Council Salary Survey and the Bureau of Labor Statistics wage

surveys. If you are considering the salary and benefits for a job in another

geographic area, make allowances for differences in the cost of living. Use

the research to come up with a base salary range for yourself, the top being

the best you can hope to get and the bottom being the least you will take.

When negotiating, aim for the top of your estimated salary range, but be

prepared to settle for less. Entry level salaries sometimes are not

negotiable, particularly in government agencies. If you are not pleased with

an offer, however, what harm could come from asking for more?

An employer cannot be specific about the amount of pay if it includes

commissions and bonuses. The way the pay plan works, however, should be

explained. The employer also should be able to tell you what most people in

the job are earning. 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 evening and

weekend work is required or expected. Will you receive overtime pay or 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. If the employer is pleased with your performance, how much can you

expect to make after one year? Two years? Three years and so on?

Don't think of your salary as the only compensation you will receive.

Consider benefits. What on the surface looks like a great salary could be

accompanied by little else. Do you know the value of the employer's

contribution to your benefits? According to a 1989 Bureau of Labor

Statistics study, for each dollar employers in private industry spent on

straight-time wages and salaries, they contributed on average another 38

cents to employee benefits, including contributions required by law. Benefits

can add a lot to your base pay. Your benefit package probably will consist

of health insurance, life insurance, a pension plan, and paid vacations,

holidays, and sick leave. It also may include items as diverse as profit

sharing, moving expenses, parking space, a company car, and on- site day

care. Do you know exactly what the benefit package includes and how much of

the cost must be borne by you? Depending on your circumstances, you might

want to increase or decrease particular benefits.How much flexibility will

the organization let you have to tailor a package to suit your needs? "Beyond

Your Paycheck: An Employee Benefits Primer," in the fall 1990 Occupational

Outlook Quarterly, contains more information on this subject.

When you evaluate a job offer, you have a great many things to consider.

Only you will be able to decide whether a larger salary will balance more
promising advancement opportunities, or whether better health insurance will
make a longer commute worthwhile. Asking the questions suggested in this article

won't guarantee that you make the best choice - only hindsight could do that

- but you will probably make a better choice than if you act on impulse.