After receiving a job offer, most people gloss over the
actual details. The excitement of having
a job overshadows the time it takes to carefully review and consider an
offer. But, as they say, the devil is in
the details. An offer – a GOOD offer –
is more than just base salary. In fact,
there are several key components you should request and discuss before
accepting, or signing, any job offer.
How do you avoid this mistake that could mean leaving money on the table? Simple. Follow 3 key steps:
1. Learn what you COULD be getting
This is probably the biggest mistake people make. They don’t take the time to learn everything
that’s out there – all the rewards they could be getting. “New hires” assume the company means
something they don’t (for example, they assume they will be eligible for a bonus
but then are disappointed to find out they are not eligible). And you know what happens when you
assume.
You don’t get it.
There are several terms I recommend having included in all
offers (must have’s). Other elements of the offer will depend on
the company (for profit, nonprofit, private, etc.), industry and the level of
the position (nice to ‘’have’s). Before you accept an offer – or even negotiate
- find out what the offer should include.
2. Confirm your offer includes these 3 “Must-Haves”
Title and brief description
Many people interview for a role thinking they will be doing
a certain job. Unfortunately, after
showing up for the job, they find out they are being asked to do something
completely different. It happens. When you receive the offer in writing, ask
for the role to be briefly described. In
case something changes, you will have the written offer to use when talking
with your company about your role and how to transition into what you were actually
hired to do.
Timing of your first raise
Of course, everyone wants the annual salary front and center
on their offer letter. But what most
people assume is that they will be automatically eligible for an increase at
the company’s next review cycle. Not
true! Depending on when you are hired
during the year relative to when salary increases are given, you may not get an
increase. You will want to confirm when
you are eligible for the next review and raise in your offer letter.
Benefits
Most people assume benefits will include certain provisions,
cover many of their doctors or prescriptions, or cost a certain amount on a
monthly basis. It is a worthwhile time
investment to understand how much employees are charged on a monthly basis for
benefits and review the copays and deductibles.
Benefit costs add up quickly and can significantly dent your monthly
take home pay.
3. Depending on your role and the company, ask for the “nice to have’s”:
Good offer letters should cover the “must-have’s”, but fewer cover the “nice to have’s”. Such as:
- § Bonus (how much and in what form, when and what do you need to do to get it)
- § Equity (stock options, restricted stock, etc.)
- § Supplemental benefits and/or 401(k) matches
- § Noncompetes (and other restrictive clauses like confidentiality agreements); and
- § Severance, to name a few.
Get answers to important questions like: Is the bonus amount
listed the target or the max? How much
are those stock options worth and when can I exercise them? Will I get more? Is that noncompete clause fair? How much severance should I be
expecting? What about relocation – am I
receiving a fair package?
Again, ask around.
Some of these questions you can discuss with your employer by asking
them more about their rewards programs.
Or you can ask friends, colleagues and experts.
And ALWAYS get the offer in writing.
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