How to Read a Job Offer: What Matters Besides the Salary
Base salary is the number everyone compares, and it is frequently not where the difference between two offers lies. A $5,000 salary gap can be erased by a retirement match, and a $10,000 gap can be reversed by a health plan.
For a related Monitask resource on annual work-hour calculations, see more details.
Here is what to work through before you answer.
General information, not legal or financial advice. Have anything with restrictive covenants reviewed by an attorney in your state.
Cash
Base salary. The headline figure.
Bonus. Ask three things: is it discretionary or formula-based, what has actually been paid the last two years, and do you have to be employed on the payout date to receive it. That last condition is common and worth knowing before you plan around the money.
Commission. Get the plan document, not a summary. Look at quota, rate, accelerators, caps, when commission is considered earned, and what happens to commission on deals that close after you leave.
Sign-on bonus. Usually has a clawback — if you leave within a stated period, you repay some or all of it. Check the period and whether repayment is gross or net.
Relocation. Same question: clawback terms and duration.
Retirement
Often the largest hidden difference between two offers.
Match. "50% up to 6%" means the employer contributes 3% of salary if you contribute 6%. On a $90,000 salary that is $2,700 a year. "100% up to 4%" on the same salary is $3,600. The difference between a good match and none is real money.
Vesting. Employer contributions may vest immediately, or over a cliff or graded schedule of several years. Money that has not vested is not yours yet. If you expect to move within two years, a four-year graded schedule is worth less than it appears.
Eligibility waiting period. Some plans start on day one, others after a period of service.
Contribution limits are set by the IRS and change annually — check the current figures rather than relying on a number in an article.
Health coverage
For many people, the largest non-salary variable, and the hardest to compare from a summary.
Get the plan documents and compare:
Premium — your share per pay period, for the coverage tier you need. Family coverage differs enormously between employers.
Deductible — what you pay before the plan starts paying.
Out-of-pocket maximum — the worst case in a bad year. This is the number that matters if you have a chronic condition or a family.
Network — are your doctors in it. Check specifically, not generally.
Prescription coverage — for anything you take regularly.
HSA or FSA, and whether the employer contributes.
Two offers $8,000 apart in salary can be equivalent, or reversed, once family premiums and deductibles are counted.
Time off
Accrual or lump sum, and whether unused days carry over.
Whether it is paid out on departure — this depends on state law and company policy, and in some states accrued vacation is treated as earned wages.
"Unlimited" PTO. Ask what people actually take. It frequently results in less time off than a defined allowance, and it is typically not paid out when you leave, because nothing accrued.
Separate sick leave, or does everything come from one bucket.
Parental leave — how much, paid at what rate, and after what length of service.
Holidays — how many, and whether they are fixed or floating.
Equity
If offered, ask for specifics rather than a headline number of shares.
- Type — ISOs, NSOs, RSUs. The tax treatment differs substantially.
- Number of shares and the current total outstanding. A share count is meaningless without the denominator.
- Strike price and the most recent valuation.
- Vesting schedule, including any cliff.
- What happens if you leave — the exercise window is often 90 days, which can create a tax bill you cannot fund.
- What happens on acquisition.
Treat private-company equity as a possible upside, not as compensation you can spend. Evaluate the offer on cash and benefits, and let equity be the tiebreaker.
The clauses that outlast the job
Read these before signing, and take advice on anything that concerns you.
Non-compete. Enforceability varies dramatically by state — some states restrict or prohibit them for many workers, others enforce them broadly. Check the scope: what activity, what geography, how long.
Non-solicitation. Usually more enforceable than a non-compete. Note whether it covers customers, employees, or both.
Confidentiality and IP assignment. Look at whether it claims work created on your own time with your own equipment. Some states limit how far this can go.
Arbitration. Whether disputes go to arbitration rather than court, and whether class actions are waived.
At-will confirmation. Standard in almost every state, and not something to negotiate away — but be sure nothing else in the letter contradicts it in a way that creates confusion later.
Things not in the letter that you should ask
- Who you report to, and whether that person is likely to change
- Team size and whether the role is new or a replacement
- Why the previous person left, if it is a replacement
- Remote or hybrid expectations, in days, in writing
- Review and raise cycle — when, and based on what
- Travel expectations
- On-call requirements
- What success looks like at six months
Get the material ones added to the offer letter or confirmed by email. A verbal promise about remote days is worth very little when the manager changes.
Comparing two offers
Build a simple table:
| Offer A | Offer B | |
|---|---|---|
| Base | ||
| Realistic bonus | ||
| Retirement match, annual value | ||
| Annual health premium, your share | ||
| Expected out-of-pocket healthcare | ||
| PTO days | ||
| Commute or relocation cost | ||
| Net annual position |
Then, separately, judge the things the table cannot hold: the manager, the work, the growth, and how the company behaved during the interview process. That last one is a better predictor than most people credit.
Before you answer
Ask for the offer in writing with all plan documents. Ask for a reasonable few days to consider — this is normal and no reasonable employer objects.
If you intend to negotiate, do it once, with a specific number and a reason. See negotiating salary without conflict.
Looking for a role? Browse open positions → For broader reference, consult BLS wage data.