WHAT TO CONSIDER BEFORE ACCEPTING A JOB OFFER ?
We make the decision that it's to time leave our current
employer and look for another job.
Once you've started your job search, you've cut the
emotional ties and now it's just a matter of time until you get the right job
offer and then you are on your way.
1) Compensation
While compensation should not be the single driving factor
of your job search, it is certainly in the top two or three considerations (who
wants a new job for less money?).
Your job offer will obviously include your salary and bonus
details. Prior to your offer, you should have done some homework on the current
market rates for your position. While this is not a hard and fast rule,
you will have developed some ranges as to what to expect. If you did not do
this prior to the offer, it's never too late to take a look.
Hopefully, the offer meets or exceeds your expectations.
Whichever way it goes, you should consider the following:
- Too
much of an increase – sounds like a nice problem to have, but if
your offer is significantly higher than your current compensation (greater
than 25%), it might be a cause to worry. Excessively high compensation
offers are often signs of a bigger issue. This is where your due diligence
homework comes in (salary surveys and reviews). Try to find someone in
your network that has some inside information about the
department/position you've been offered.
- Salary
increase is too low – while there is not a set percentage
increase that you should expect when changing jobs, the job offer should
reflect the risk of changing jobs. If you are leaving a current job, as
opposed to looking while unemployed, there is a fair amount of risk. Less
than a 10% increase might be an issue, but consider the below 9 points
along with the compensation piece before making a decision.
- Potential –
there should be reasonable upside potential in your future compensation at
your new job. You should ask some questions regarding annual compensation
or performance reviews. You should also consider where you fall on the
low/high compensation range for your role. Where you fall on the salary
range will drive upside potential. If you are already earning at the top
of your range, the prospect of significantly higher increases will be
somewhat lower.
- Variable
compensation – you should also consider any variable compensation
such as bonuses, overtime pay and sales commissions where relevant.
2) Future Advancement
The potential for advancement should have been one of
the questions you asked
during the interview process. The size of the company, your role, your
performance and the size of your department all play a key part when evaluating
future growth.
Regular performance reviews (another question that should be
asked during the interview process) also play a key factor. Not to worry, if
you did not ask these questions during the interview process it is not too
late. The job offer negotiation process (more on that later) is a bit of a give
and take (hopefully ‘take,' for you).
3) Organizational Structure
You should fully understand the organizational structure of
the company. If this was not made clear during the interview process, now is
the time to clarify this. You should clearly understand:
- Who
you will report to: your manager and reporting line should be clearly
defined in your job offer. How many bosses will you have? Who does your
boss report to?
- Who
works for you: How large is your staff? Are there any issues to consider?
4) Expectations
Ask the question – “After one year on the job, I've been
very successful and have exceeded all expectations. What have I achieved in the
year?”
You need to fully understand expectations. What is expected,
what must be delivered and what are the obstacles you will encounter?
5) Training
How long will it take you to “come up to speed”? Will some
training be provided? Will you need to “hit the road running”?
Depending on your level of experience and position in the
new company, there will be some expectation that you can come up to speed
quickly. You need to ensure that those expectations are reasonable.
Don't get yourself into a “no win” situation.
6) Stability
What happened to the previous person in the role?
More likely than not, you will be taking a position that
belonged to someone else. If you are lucky, the person who had the role before
you was promoted and that's why the position is available. But if the person
left the organization, you need to understand why they left or were asked to
leave.
This is a great time to leverage your
network to see if anyone you know can help you find out the
details. You should also feel comfortable with the department's and company's
turnover.
7) Benefits
Sounds basic, but make sure you fully understand your
benefits. While not directly “compensation”, the value of benefits provided (or
any shortfalls to what you currently have) can have a huge impact on your net
gain over your current role/company.
- Medical
and dental
- Vacation,
sick days and personal days
- Pensions,
401k plans, matching savings plans
- Work
environment – flexible work environment (hours and work from home)
8) What You Can Negotiate
Don't be afraid to negotiate!
Compensation is always up for negotiation. Vacation is also
a somewhat easy benefit to negotiate. Benefits are probably not negotiable.
Make sure you balance your requests, as pushing too hard
could end the offer. On the other hand, don't settle and be prepared to walk
away if you feel the offer falls short.
9) Comparison With Your Current Job
Is the grass always greener on the side?
Items 1 through 8 should help you make your decision but the
good old “pros and cons” list is the best way to go.
Make a list of everything you are giving up in your old job
and everything you stand to gain in the new job. Be honest with yourself and
your pros and cons list will help you make this difficult decision.
10) Counter-offers
Counter-offers are very common. My own personal view is that
if it takes a resignation to have your current employer offer what the new
company is offering – and many times, more than what is being offered – then it
is too late.
On the other hand, a counter-offer generally means that you
are highly regarded and that they don't want to lose you.
If you receive a counter-offer, review the reasons you
decided to search for a new job and check that you'd be comfortable with
staying (you don't want to be looking for a job again in six months).
Life is a journey and your decision is just one more step in
that journey. There is no such thing as a “bad decision”, there is no looking
back, only looking forward.
Whatever you decide, good luck in your search.
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