Eight steps to take when evaluating a job offer

1. Get all the information you need to make a decision.

In order to make a decision on whether or not to take a job, you need to make sure it's a firm offer and have all the right information in hand. If you haven’t gotten one, you should ask for a written offer letter that describes the position, your pay and a summary of benefits. Ask for a written description of your complete benefits package, because the value of those benefits can amount to a third of your pay or more.

If leaving a job, review your employer’s policies to see how much notice you have to give. Typically, it’s two weeks. Don’t give notice until you’ve received an official offer letter from your new employer and given them a firm yes.

• See also: Jobs and income

2. Understand the compensation details.

Compensation means your actual pay and any other financial benefits you receive. Some jobs offer incentive bonuses and increases to the base salary (called merit increases) each year for performance. Many jobs also give an annual cost-of-living adjustment that comes in the form of a small raise.

When you are evaluating a job offer, ask about annual performance reviews and whether or not those include incentives for good performance at work. You can ask for an initial six-month performance review and to be considered for a raise after that period of time. Some new employers are willing to give you a salary increase after seeing you do a good job.

3. Evaluate the benefits package.

Standard benefits typically include a health insurance plan, a retirement plan, help with commuting costs and other perks like flexible spending accounts. The total benefits package varies based on each employer, so you want to find out everything that you’ll be getting from that job.

Here are a few things to look out for:

• Health insurance plan
  Find out about the health insurance plan and ask to see details. You want to know if your coverage will let you continue seeing your preferred doctors and medical facilities. If the job doesn't come with health insurance, find out how much it will cost to get it independently and try to negotiate that as part of your pay. Employer-paid health insurance can be worth thousands of dollars per year, so if you’re going to pay out-of-pocket, you need to make enough to do that. If you're married and your spouse has a good plan through work, this might not be as important.
  • See also: Health insurance

• Retirement plans
  See if the company offers some kind of retirement plan, such as a 401(k), 403(b) or a SIMPLE IRA. Some employers have a waiting period, so ask when you will qualify for it. Find out whether your employer will match contributions to your retirement plan and if so, how long you have to work there before they start to contribute and before the money is yours to keep, called a vesting schedule. If you expect to leave before any match is yours to keep, then it’s not worth it. Taking a match is optional, but it is additional pay that you could get on top of your salary — so take it. If you don’t, you’re missing out on free money.
  
  • See also: Retirement, Max out your 401(k)

• Other benefits
  Employers sometimes offer other perks like dependent care accounts, flexible spending accounts to use for out-of-pocket health expenses including eye exams, co-pays and deductibles and over-the-counter medicines, generous vacation and tuition reimbursement or professional development classes. Some jobs also will pay your professional memberships and conferences. These are great benefits and you should consider them part of your total compensation package.
  
  • See also: Jobs and income

4. Talk about the expected work schedule.

Make sure to ask about the average work week and any non-traditional hours you can expect. If you are a salary or exempt employee, meaning you don’t get overtime, this will help you get an idea of how many hours you might be working.

If you are going to be working extra on evenings and weekends, ask if you get any time compensation (time off for extra days worked). Be careful about asking this, because you don’t want it to seem like you won’t work long hours. Just explain that you are a hard worker and don’t mind putting in the hours it takes to do good work and that you want understand the overall work culture.

If you want, ask about whether the schedule is strictly 9-to-5 or if you have options like flexible hours and working from home. This can be important if you live far away and want to avoid commuting during rush hour. And remember, if the hours don’t fit your lifestyle, think twice about taking the job. You don’t want to end up unhappy because you took that high-pay, long-hour job, but really want a better work-life balance.

5. Read up on the company and its industry to learn about risks.

If you don’t know a lot about the company or the industry, do some homework before you take the job. If the company or industry are risky, are going through major changes or are in a bad economic situation, there’s a chance that your job might not be there in a year or two. Check the company’s reputation and see if you can talk to current and former employees. You want to figure out if the company is a good place to kick your career forward or whether it might be a dead end.

6. Do a culture check. 

You'll spend more time on the job than you will with many of your family and friends so a good culture fit is important to consider. Is everyone wearing suits when you prefer to dress casually? Did you feel comfortable in the office space and talking with your future co-workers? Use your gut to help you react to this. If it didn’t feel like a good fit when you interviewed, consider whether this really is the right job for you.

7. Try out the commute.

Try out the commute getting to work on a Tuesday and getting home from the potential new job on a Friday, both of which can be especially busy times. Adding an hour or two of driving to your commute every day when taking a new job may not be worth the additional pay, factoring in not just the commuting costs, but also the stress it can cause and the time it takes away from your family, friends, hobbies, etc.

8. Pay attention to interview red flags.

This goes without saying, but watch how your future employers and co-workers interact with each other when you are interviewing. Do they make eye contact with each other or does there seem to be tension? Do they agree with and support each other or argue? Do they complain about the workplace at all? Do they spend more time talking about themselves than asking you questions?

All of these can be potential red flags to look out for when you’re evaluating a job. Remember, an interview is as much about you evaluating potential jobs as it is about potential employers interviewing you.

Other things to think about

There are a few things that didn't make the master checklist, but which might apply to you:

• If you get stock options, read the fine print.

If stock options, restricted stock or an employee stock purchase plan are part of the offer, read up on what those are and how they work or see a financial planner or other adviser in your area to help evaluate what they're worth.

• See also: Investment, Financial professionals

• If you’d get a sales commission, talk with employees about average rates.