In order to make an informed decision, you’ll want to consider what is called the  “ABC’s” of the job offer. Specifically, this means the Assignment, the Benefits and, last but not least, the Compensation package. In this article, we will cover these areas and give you a “WIIFY” (What’s In It For You) approach to considering the various items that may be included in a job offer. We suggest that you expand or collapse the list of items that are provided to fit your specific circumstances, the company and the position.

A good rule to remember when evaluating a job offer is that you do not have to accept the job immediately. It is acceptable for you to express your interest and the need to get back to the employer with a decision by a specified time. Ask the recruiter how much time would be reasonable. This then gives you time to implement the “WIFFY” approach.  What’s this approach?

The “WIIFY” Approach

At first glance, you might be thinking – What’s in it for Me? – isn’t that a self-centered, selfish approach for you to take? Is this politically correct?  The answer is, “yes!”  It’s perfectly okay for you to look out for your financial and career success.  No one else is going to do it for you, but you!

Let’s think about it this way. You’re about to embark on your first professional position.  One that will enable you to begin to build not only your career, but also a quality lifestyle.   This approach is important because generally not much emphasis has been placed on telling college graduates about the importance of personal financial fitness when considering their first position. We are raising this now because by focusing on building wealth and looking at your financial picture early on, you’re on the path to financial planning awareness that will free you to enjoy and appreciate many of the other aspects of life. These include social, educational, recreational, family, and retirement. Yes, retirement! What better time than now, at the beginning of your career, to be proactive and start to consider your retirement years?

We know you’re probably thinking that retirement seems light years away, but with the proper attitude and planning, you will be able to better appreciate the foresight you have given to this important area, especially when you start to reap the rewards at your retirement.

When you eventually accept the job offer, you may or may not stay with this employer for life, but certainly you will eventually change jobs and move toward your retirement years.  Think about the number of years until you expect to retire and the monthly income (net of taxes) that you believe will allow you to live comfortably. But, let’s not put the cart before the horse, you need a job offer first, correct?

Taking Your Financial Pulse

Your pulse is related to how financially fit you plan to be in the years ahead. Do you plan to have a weak or good pulse? Financial health is just as important as your physical health.  Before considering the job offer, think about your financial pulse (now and in the next year or two – after you’ve started your new position). To decide what’s important, consider the following questions

• Do I plan to have well-defined personal financial goals?

• How do I plan to view my  financial future? With enthusiasm and confidence?

• Do I plan to save money on a regular basis?

• Do I plan to spend more than I earn?

• Do I plan to have investments? (If so, what types: real estate, money market accounts, stocks and bonds?)

• Do I plan to take advantage of all company sponsored savings/investment programs?

• How much life insurance coverage will be sufficient for me?

• What about disability insurance?

• Can I distinguish between spending and saving?

• Do I plan to avoid major credit card purchases?

• Am I already in debt?

• Do I plan to marry and have children within the next two to three years?

• If yes, do I plan to save for your children’s college education?

• Do I plan to retire in comfort?

• When do I plan to retire?

By focusing on your longer-term future (not just today), you’ll hopefully get a better perspective on tackling the ABC’s of the job offer because the salary and benefits you receive have a direct impact on your finances. First, let’s turn to the A – the Assignment.

The Assignment

It’s important to have a clear understanding of your duties and responsibilities as you think about the offer. If you were lucky, you may have received a copy of the position description during your interviews. With whatever information you have at your disposal, like a job description or your interview notes, consider the answers to the following questions (as appropriate to your particular circumstances and the position).

• Why do I want this particular job?

• Is this truly the job for me?

• Am I passionate about the responsibilities?

• Does the position offer the challenge I am seeking?

• Is this the job for me now?

• Does the position match my career goals?

• Do I feel “lukewarm” about the job?

• Should I hold out for a better or different offer?

• Have I met my manager?

• Do we seem compatible?

• Am I clear on his or her management style?

• Am I clear on the expectations for the position?

• How will my performance be evaluated, by whom and when?

• What are the promotional opportunities?

• Where will I be in one to two years?

• Have I met others on the team?

• Have I considered if travel is involved?  If so, am I available for travel on a regular or infrequent basis?

If there any points that remain unclear, consult with the company recruiter until you are comfortable with the answers and information you receive. The goal is to accept a job that is a good “fit” with your career goals and needs. Next comes the Benefits.

The Benefits

There are many compensation factors other than salary and bonus (see Compensation section which follows) that can be included in an offer depending on the level of the position, your level in the organization and other company policies or practices. Review the benefits information (hopefully you received this information early on from the human resources department). Benefits vary from employer to employer, but most strive to be competitive with other employers competing for talent. Secure the information and try to get the answers to the following:

• How many vacation days do I receive annually?

• When can I begin to take them?

• What about personal days?

• Holidays?

• How about disability (sick) days? (These are sometimes lumped under a “PTO” policy --paid time off --in some companies).

Insurance Programs

• Medical – what are my medical insurance benefits?  Plans?
• Dental – Am I eligible for dental coverage?
• Life – what about life insurance?
• Long-term disability, short-term disability – what am I eligible for under these plans?

Financial Programs

• Deferred compensation/401K plans – Am I eligible for these plans?
• Thrift Plan – Is there a company thrift plan?
• Matching investment/profit plan?
• Stock options  -- Am I eligible for stock options?
• Company pension plan  -- When am I eligible to participate?  What are the vesting requirements?

Educational Programs

• Tuition reimbursement – Am I eligible for tuition reimbursement?

• Education/training courses – Is there an in-house training center that offers free classes? Is there approved release time to attend classes? Will the company pay if I take professional development/technical classes off-site (not under tuition reimbursement plan)?

• Memberships & subscriptions – What kinds of memberships (professional associations) and subscriptions to professional periodicals will the company pay for?

Relocation Benefits and Expenses

Relocation costs (if you are considering a position which will require you to move to a new location) are generally handled on a “case by case” basis. The expenses of packing, moving, and traveling can easily add up. A company’s willingness to be flexible on these depends on their established policies and oftentimes the level of the employee. .  Remember, the higher up you are in the organization, the more generous the relocation policy tends to become. Items which you may want to consider include: House hunting trips for family/yourself, moving costs (direct or percentage of costs), travel to and from the new location and temporary housing until you get settled in. Consult with human resources for more specific information.

Additional Employee Services/Perks

Find out if you qualify for any of the following additional employee services or perks.

• Equipment (cellular phone, laptop)

• Company Car

• Telecommuting (usually with computer ties to the office)

• Time off or a Flexible Work Schedule

• Employee Assistance Program (includes services of professional counselors, on a confidential basis, for concerns related to emotional, marital, family, alcohol/other drug use, job problems, legal/financial counseling).

Now, let’s turn to Compensation.

The Compensation

Generally, base salary is the most important of the factors that individuals look at when evaluating an offer. Generally, you will have researched the prevailing salary range for the position, company, industry and location you are considering. Use this information and any that you received from the recruiter on the range of pay and budget for the position when you think about the actual salary. If a bonus or commission also is included in the package, you’ll want to explore how they are determined. If the bonus is based on performance, you’ll want to get details on the criteria that will be used to measure your results.

A special note: you should explore how and when all salary, bonus and other compensation matters are reviewed and decided. Why?  So that you’re clear on what’s expected of you and how you plan to meet those expectations (or limitations). Consider the following questions when arriving at the compensation package.

• What is the pay (base salary), including the cycle for salary reviews?

• Is there a “signing”/ sign-on bonus?  If so, how much?  (Check to see if there’s a clause, which causes you to forfeit or repay the sign-on bonus if you leave the company before a prescribed time period, for example, one year?)

• Is there a regular bonus?

• What’s the timing for bonuses?

• How are bonuses determined:  performance/incentive or profit trends?

• Are there sales commissions?

• What are the other compensation and incentives (stock options, profit sharing, performance awards)?

Chris Bardwell is a frequent contributor to THE BLACK COLLEGIAN Magazine and head of the Chicago-based career development and consulting firm, The Career Connection, Ltd.