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Evaluating Job Offers
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Transitioning to Work:
Evaluating Job Offers
nce you receive a job offer, you are faced with a difficult decision and must evaluate the offer carefully. Fortunately, most organizations will not expect you to accept or reject an offer immediately.
There are many issues to consider when assessing a job offer. Will the organization be a good place to work? Will the job be interesting? Are there opportunities for advancement? Is the salary fair? Does the employer offer good benefits? If you have not already figured out exactly what you want, the following discussion may help you develop a set of criteria for judging job offers, whether you are starting a career, reentering the labor force after a long absence, or planning a career change.
Background information on an organization can help you decide whether it is a good place for you to work. Factors to consider include the organization’s business or activity, financial condition, age, size, and location.
You can generally get background information on an organization, particularly a large organization, by telephoning its public relations office. A public company’s annual report to the stockholders tells about its corporate philosophy, history, products or services, goals, and financial status. Most government agencies can furnish reports that describe their programs and missions. Press releases, company newsletters or magazines, and recruitment brochures also can be useful. Ask the organization for any other items that might interest a prospective employee.
If possible, speak to current or former employees of the organization. Background information on the organization may be available on the Internet or at your public or school library. If you cannot get an annual report, check the library for reference directories that may provide basic facts about the company, such as earnings, products and services, and number of employees. Some directories widely available in libraries include:
Dun & Bradstreet’s Million Dollar Directory
Standard and Poor’s Register of Corporations
Moody’s Industrial Manual
Thomas’ Register of American Manufacturers
Ward’s Business Directory
Stories about an organization in magazines and newspapers can tell a great deal about its successes, failures, and plans for the future. You can identify articles on a company by looking under its name in periodical or computerized indexes in libraries. However, it probably will not be useful to look back more than 2 or 3 years.
The library also may have government publications that present projections of growth for the industry in which the organization is classified. Long-term projections of employment and output for more than 200 industries, covering the entire economy, are developed by the Bureau of Labor Statistics and revised every two years. The U.S. Industry and Trade Outlook, published annually by the U.S. Department of Commerce, presents detailed analyses of the globalization of U.S. industry and growth prospects for some industrial sectors. Trade magazines also have periodic articles on the trends for specific industries.
Career centers at colleges and universities often have information on employers that is not available in libraries. Ask a career center representative how to find out about a particular organization.
Does the organization’s business or activity match your own interests and beliefs?
It is easier to apply yourself to the work if you are enthusiastic about what the organization does.
How will the size of the organization affect you?
Large firms generally offer a greater variety of training programs and career paths, more managerial levels for advancement, and better employee benefits than small firms. Large employers may also have more advanced technologies. However, jobs in large firms may tend to be highly specialized.
Jobs in small firms may offer broader authority and responsibility, a closer working relationship with top management, and a chance to clearly see your contribution to the success of the organization.
Should you work for a relatively new 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. However, it may be just as exciting and rewarding to work for a young firm that already has a foothold on success.
Does it make a difference if the company is private or public?
An individual or a family may control a privately owned company and key jobs may be reserved for relatives and friends. A board of directors responsible to the stockholders controls a publicly owned company and key jobs are usually open to anyone.
Is the organization in an industry with favorable long-term prospects?
The most successful firms tend to be in industries that are growing rapidly.
Even if everything else about the job is attractive, 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 the job before accepting or rejecting the offer, the more likely you are to make the right choice. Actually working in the industry and, if possible, for the company would provide considerable insight. You can gain work experience through part-time, temporary, or summer jobs, or through internship or work-study programs while in school, all of which can lead to permanent job offers.
Where is the job located?
If the job is in another section of the country, you need to consider the cost of living, the availability of housing and transportation, and the quality of educational and recreational facilities in that section of the country. Even if the job location is in your area, you should consider the time and expense of commuting.
Does the work match your interests and make good use of your skills?
The duties and responsibilities of the job should be explained in enough detail to answer this question.
How important is the job in this company?
An explanation of where you fit in the organization and how you are supposed to contribute to its overall objectives should give you an idea of the job’s importance.
Are you comfortable with the hours?
Most jobs involve regular hours—for example, 40 hours a week, during the day, Monday through Friday. Other jobs require night, weekend, or holiday work. In addition, some jobs routinely require overtime to meet deadlines or sales or production goals, or to better serve customers. Consider the effect the work hours will have on your personal life.
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.
A good job offers you opportunities 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. What valuable new skills does the company plan to teach you?
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? 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?
Wait for the employer to introduce these subjects. Some 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. Try to find family, friends, or acquaintances who recently were hired in similar jobs. Ask your teachers and the staff in placement offices about starting pay for graduates with your qualifications. Help-wanted ads in newspapers sometimes give salary ranges for similar positions. Check the library or your school’s career center for salary surveys such as those conducted by the National Association of Colleges and Employers or various professional associations.
If you are considering the salary and benefits for a job in another geographic area, make allowances for differences in the cost of living, which may be significantly higher in a large metropolitan area than in a smaller city, town, or rural area.
You also should 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 you receive overtime pay or compensatory 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 year. How much can you expect to earn after 1, 2, or 3 or more years? An employer cannot be specific about the amount of pay if it includes commissions and bonuses.
Benefits can also add a lot to your base pay, but they vary widely. Find out exactly what the benefit package includes and how much of the costs you must bear.
National, State, and metropolitan area data from the National Compensation Survey, which integrates data from three existing Bureau of Labor Statistics programs—the Employment Cost Index, the Occupational Compensation Survey, and the Employee Benefits Survey—are available from:
Bureau of Labor Statistics, Office of Compensation and Working Conditions, 2 Massachusetts Ave. NE., Room 4130, Washington, DC 20212-0001. Telephone: (202) 691-6199.
Data on earnings by detailed occupation from the Occupational Employment Statistics (OES) Survey are available from:
Bureau of Labor Statistics, Office of Employment and Unemployment Statistics, Occupational Employment Statistics, 2 Massachusetts Ave. NE., Room 4840, Washington, DC 20212-0001. Telephone: (202) 691-6569.
PLEASE NOTE: The material in this publication is within the public domain and has been reprinted here from the Occupational Outlook Handbook (Division of Occupational Outlook, Bureau of Labor Statistics, U.S. Department of Labor, Washington, DC 20212. Phone: (202) 691-5700. Fax: (202) 691-5745. E-mail: email@example.com.). To view other articles from the Occupational Outlook Handbook, please visit the BLS.