10+1 Key Factors and Criteria for Evaluating a Job Offer

It’s an exciting, almost euphoric feeling when the words “Job Offer” pop up on your phone’s screen in the form of an email notification, especially if you’ve been waiting anxiously after several rounds of interviews and hoping for good news.

Indeed, you’re bound to do a little dance — either in your head or through a full-blown live performance à la Carlton Banks.

And I wouldn’t blame you. But although your first instinct may be to instantly accept the offer, it’s a good idea to actually take the time to evaluate it thoroughly before you do email your acceptance.

But how exactly do you go about this?

In this guide, I will walk you through the different criteria to use when evaluating a job offer, and share practical tips and tricks along the way. You’ll also find a free downloadable checklist to help you out!

The importance of evaluating a job offer

You could theoretically accept a job offer without reading the specific terms and conditions, but you’ll have no idea what you’re ultimately agreeing to: crummy pay, sub-standard working conditions, or even selling your soul to the company!

Moreover, when you actually spend time scrutinizing the terms of the offer:

• You determine whether the role aligns with your career goals, financial needs and personal values
• You avoid making hasty decisions that could lead to job dissatisfaction, poor work–life balance, burnout or misaligned expectations
• You understand the full compensation package, including salary, befits and opportunities for growth
• You can make a confident, informed decision that contributes to your career success and personal happiness

Criteria to use when evaluating a job offer

There are many key factors and criteria to consider when evaluating a job offer, and they will largely differ from jobseeker to jobseeker. In fact, what you consider a priority might not carry the same weight for someone else, and vice versa.

Still, the following 10 criteria are universally important and can serve as a helpful guide for anyone evaluating a job offer.

1. Salary

Your first consideration when reviewing a job offer will naturally be the salary, whether it’s hourly, weekly or monthly. And that’s perfectly normal.

While assessing the salary being offered, though, ask yourself questions like:

• Does it align with my expectations?
• Is it an hourly, weekly or monthly figure?
• Does it fairly and competitively reflect the market value of the specific position and skill set?
• What is the after-tax figure?
• Can I comfortably live off this wage from month to month, considering local living costs?

That said, it’s important to not just focus on the base salary alone, but to also consider potential bonuses and incentives like signing bonuses, performance bonuses, commissions and profit-sharing opportunities.

2. Perks and benefits

While salary is an important factor to consider, it’s a good idea to look beyond the basic pay and onto any perks and benefits that the company offers its employees. Indeed, these little extras could potentially make up for a slightly lower salary — or perhaps even add to an otherwise generous compensation package.

Some perks and benefits to look out for include:

• Childcare support
• Company discounts
• Gym memberships
• Insurance coverage (health, life, dental, etc)
• Paid lunches
• Relocation assistance
• Retirement plans
• Vacation and time off

For example, let’s say the company offers daily free lunches as part of its benefits package. And let’s say that the average daily lunch costs $10. Multiply that number by 5 days a week, and then 52 weeks a year — and you’re personally saving a whopping $2,600 a year.

3. Commute and location

Although commute time won’t show up in the offer, it’s important that you calculate how long it will take you to get to work and back home each day, and determine what you deem comfortable and doable.

Indeed, the further or longer you have to travel (whether it’s by car, public transportation, foot or flying hippo), the more damaging it is to your physical and mental health — with effects ranging from high blood sugar to depression, sleep deprivation to alcohol abuse, and obesity to anxiety.

A long commute also means you’re away from home longer, leaving you with little time and energy for family and friends (potentially straining relationships along the way), pets, hobbies, self-care, and the overall pursuit of a healthy work–life balance.

It can also be expensive, unless the company is willing to reimburse you for travel costs, whether fully or partially.

4. Work–life balance

Ah, work–life balance: the elusive goal so many of us strive for but seldom achieve. But the thing is: it is achievable — so long as we make a plan, establish expectations and set boundaries. Fortunately, a new job allows us to do just that from the get-go.

A healthy work–life balance usually means different things for different people, though, and it can vary depending on personality, preferences and priorities. For a working parent, it might mean a flexible work schedule to accommodate their parental responsibilities; for a pet parent, it might mean a hybrid work arrangement to ease their furry friend’s separation anxiety.

Think about what you want and need to achieve the ideal work–life balance, and consider how the terms of the job can help you achieve it — be it flexible or stable working hours, remote or hybrid work arrangements, or a sense of control and autonomy over your work.

5. Career growth opportunities

While interviewing for the job, you will likely have asked the hiring manager about career growth and advancement opportunities, and the answer you received should carry a lot of weight when ultimately making your decision.

After all, you want to make sure it’s not a dead-end job — in other words, a position that is destined for stagnancy and that doesn’t provide any lateral or upward mobility opportunities within the company. In fact, remaining in the same exact position for years on end will eventually lead to boredom, burnout, and a lack of direction or purpose.

While assessing the job offer, consider the following:

• Does the company offer a clear path for promotions?
• Is there a history of promoting from within?
• Are professional development and training opportunities offered?
• Will you have access to mentorship or coaching?
• What is the typical career trajectory for someone in this role?
• Does the role align with my long-term career goals?

6. Company stability and reputation

Another important criterion to use when reviewing a job offer is the company itself — namely its financial health and reputation. The last thing you want is to accept a job at a company that’s a sinking ship or that’s notoriously a bad place to work.

One of the many good things about the internet is that it makes it easy to research a company and determine all the information you need to make a well-informed decision.

For example, publicly traded companies in the US are required by the Securities and Exchange Commission to disclose financial information to the public, allowing you to determine how profitable (or not) a potential employer is.

Likewise, websites like Glassdoor allow current and past employees to share their reviews and experiences working with a company, and this information can give you valuable insights into its inner workings. Consumer-based review websites like Trustpilot, meanwhile, can also be useful.

Last but not least, reading up on company-specific news can provide further insights into how the organization is doing financially and otherwise — pay special attention to news concerning lawsuits, labor disputes, corporate mergers or buyouts, and widespread layoffs.

7. Job responsibilities

Among the many important criteria to consider when evaluating a job offer is the role itself, something that we often overlook, as we tend to focus more on the overall compensation and benefits package. But it’s crucial to understand what exactly the job entails before accepting it to assess how it meets your expectations.

Consider the following:

• Is the company offering you the position that you originally applied for? If not, is it better or worse?
• What does the average workday look like?
• Does the job title reflect your level of experience and the scope of your responsibilities?
• Have new duties and responsibilities been added to the position, beyond those previously discussed?
• Is there any overtime work associated with the position?
• Does the position involve any travel?

8. Team and leadership

Next up: the people you will be working with — both coworkers and supervisors. Remember: you will be spending eight hours a day with these people, so it’s important to understand how well you’ll get along with them and how well you fit with the company’s leadership style and team dynamics.

Some questions to ask yourself here include:

• Who are the people that you will be working with day in and day out?
• What are their backgrounds, roles and responsibilities?
• How do they communicate and collaborate?
• How do they handle challenges and conflicts?
• What is the leadership style of your potential manager?
• How is success rewarded and recognized?

9. Company culture

Assessing the company’s culture, and your overall fitness with said culture, is a crucial aspect of the entire decision-making process. The more the culture appeals to you and the more it aligns with your values and preferences, after all, the happier and more satisfied you will be in the position, should you ultimately accept the offer.

First, make a list of what’s important to you — whether it’s diversity and inclusion initiatives, a collaborative and supportive environment, policies that promote a healthy balance between work and personal life, or something else (or all of the above).

Then, consider how the company’s mission, vision and values match with each one of your criteria and preferences. For example, if you’re looking for a supportive and positive work environment, revisit the company website and sites like Glassdoor to try to gain insight into whether the environment meets your requirements — or is instead competitive and high-pressure.

10. Job security

While job security is a bit of a myth (no one is ever totally safe from layoffs, company closures or, as we saw in 2020, even pandemics), some professions and even entire industries are “safer” than others. And this is something you also need to consider before accepting a job offer.

Indeed, the more job security you have, whether real or perceived, and the safer you feel, the better your work–life balance, productivity and overall happiness.

Ask yourself questions like:

• How high or low is the demand for this particular job?
• What is the company’s track record with layoffs or turnover?
• Is the industry growing or declining?
• Is the industry known for its volatility or stability?
• How long have employees typically stayed in similar roles?
• What is the company’s future direction?

Coming up with answers to these and other similar questions will help you figure out how much safety the specific job and company offers you. They may even help you take steps to build in-demand skills and align with growing industries, increasing your chances of long-term employment stability and career success.

Bonus: Your gut instinct

This is perhaps the most overlooked criterion to use when evaluating a job offer.

If your gut is telling you something feels a little off, even if everything else looks good (or a little too good) on paper, then your gut is probably right.

That said, it’s important not to rely on your intuition too much, especially when you can’t separate it from wishful thinking — “But they say they’ll pay me $1 million a day to play with cute, fluffy cats!”

Likewise, if you received a job offer for a “once-in-a-lifetime opportunity” that you didn’t even apply for, then I hate it break it to you, but it’s probably definitely a scam.

Tips for evaluating a job offer

Now that you know what criteria to use when evaluating a job offer, it’s time to dive deeper into how to apply those factors to making an informed decision that aligns with your career goals and personal priorities.

These must-know steps, practical tips and proven methods will give you a great starting point.

1. Create a list

One of the first things you should do when evaluating a job offer is to create a list of your must-haves and can’t-haves — basically what you want from the job and what you don’t want. For example, a must-have could be a minimum annual salary of $75,000, while a can’t-have might be a commute exceeding 45 minutes.

Then, next to each item on your list, specify the terms of the offer and how they meet your requirements.

For example:

You could make this list as simple or as comprehensive as you want, be it a basic pros-and-cons list or a 50-page PowerPoint presentation — whatever works for you. Either way, this list will help you visualize what’s on the table, which will then help you make a well-informed decision, whether that’s accepting or declining the job offer.

2. Ask for clarification

If something doesn’t quite add up (between what was discussed in the interview and what’s laid out in the job offer) or if something is unclear, don’t be afraid to contact the hiring manager or HR representative to ask for clarification — even if something is obviously a typo (like two extra zeros at the end of the offered annual salary — if only!).

Clarifying the terms of the offer ensures that there are no misunderstandings (from either party) regarding expectations, commitments and goals, and makes evaluating the job offer easier since you have a thorough understanding of what exactly you’re agreeing to.

In fact, you might take those two extra zeros for granted, accept the offer, and then be unpleasantly surprised come payday.

3. Get it in writing

While job offers are typically made through email, employers will sometimes extend an offer verbally, either in person or by phone. When this happens, they’ll usually follow up in writing.

Make sure that you do get the offer in writing, though.

After all, verbal offers mean nothing, and they’re easy to disprove. They also often lead to misunderstandings and conflict (“But you said $100 an hour!” — “I said $100 a day!), which can then create intense feelings of resentment for both parties alike. Not exactly getting-off-on-the-right-foot material!

4. Consult a lawyer

It’s not always necessary to consult a lawyer when evaluating a job offer. In fact, in the case of most offers, reviewing the terms yourself or with a trusted friend, relative, colleague or mentor will suffice.

That said, if the offer involves complex contracts, non-compete clauses or stock options, consulting a legal expert can ensure you fully understand the terms and any potential legal implications.

Likewise, if you have concerns about the offer or employment contract, or if you’re negotiating a high-level position with intricate benefits, then legal advice can provide clarity and protect your interests.

5. Don’t feel pressured into making a decision

It’s perfectly normal for companies to assign deadlines for the job offers they extend to applicants — remember: they have a vacancy to fill, and they do need to know whether you want the job or if they should reach out to their second choice.

These deadlines typically range from a few days to a whole week, or sometimes more, giving you enough time to think things through.

Anything shorter (“You have until the end of the day”), and you might want to take a step back. After all, legitimate companies will give you the time, information and space you need, and won’t rush or pressure you into making such an important career decision!

Evaluating multiple job offers

If you (luckily) received multiple job offers and have to make a choice between two (or more) jobs, you might be tempted to choose the one that offers the highest salary. But money really isn’t everything.

Indeed, the company offering the higher salary might actually have a famously toxic work environment, while the one offering the lower salary might provide more opportunities for growth and advancement.

Your best bet is to thoroughly evaluate all offers individually, and then compare them against each other — while, importantly, considering how each one aligns with your personal preferences and career goals.

Responding to a job offer

Made your decision, and now need to respond to the company’s offer? Here’s how:

Accepting the offer

If the terms of the job offer meet or exceed your expectations, needs and wants, and there’s nothing stopping you from accepting the offer, it’s time to let the employer know the good news in the form of a well-composed and professionally written email.

When responding with your acceptance, make sure you do the following in your email:

• Express your gratitude — even if it’s something as simple as “Thank you for the job offer”.
• Confirm your acceptance — make sure to reiterate the job title.
• State and agree to the employment terms — including work hours, salary and official start date.
• Address additional terms — like perks and benefits that were verbally agreed on or discussed.

Finally, take the time to proofread your email before hitting the “Send” button — the last thing you want is a typo-riddled email, courtesy of your excitement.

Negotiating the offer

When a job appeals to you but you have one or two concerns preventing you from saying “yes” to the dress job offer, you may be able to negotiate an agreement that allows you to ultimately accept.

For example, if the starting salary is a little lower than what you asked for, you could try finding a way to meet in the middle, or negotiating a couple of more PTO days instead.

Yes, this might seem a little daunting. And you might feel that you’ll come across as greedy or selfish — but you have every right to be (within reason). At the end of the day, you’re simply trying to get what you — and what the market determines that you — fairly deserve.

Since you were offered the job, it means the company wants to hire you above all other candidates. In other words, you have the most leverage at this stage. The worst that can happen is the employer is unwilling to negotiate, paving the way for you to bigger and better opportunities.

Rejecting the offer

Whether negotiations fell through, you had a terrible interview experience or you received a better deal from another company, you might, ultimately, decide against taking up the offer. And that’s okay — after all, accepting an offer than you’re not 100% on board with won’t do you or the company any good in the long term.

But the key here is to actually reject the offer, no matter how awkward it feels. In other words, ghosting the company is off the table. A short email will suffice, but you can turn down the offer by phone and then follow up with a formal email.

However you reject the offer, it’s imperative that you do so respectfully and professionally (versus “This doesn’t work for me. K. Bye.”). After all, you just never know when your paths might cross again, so burning bridges is a no-go.

Key takeaways

And that’s everything you need to know about evaluating a job offer, whether you’re taking your first steps into the world of work or advancing in your career.

To sum up:

• Carefully and thoroughly evaluate the job offer based on various criteria, including base salary, perks and benefits, company health, and your personal goals.
• Consider how these criteria align with your own expectations and requirements: do they meet them all the way, almost meet them, or miss the point completely?
• Create a list to visualize what’s being offered, ask for clarification where needed, and consider consulting a lawyer or trusted friend.
• Don’t feel rushed or pressured into making a decision. This is your career, job satisfaction and mental health we’re talking about!
• Make sure to inform the employer of your decision, whatever it is, whether it’s a “yes” or a “no”.

What other criteria do you use when evaluating a job offer? Let us know in the comments section below.

This article is a complete update of an earlier version originally published on October 2, 2017.