How to Compare Job Offers Effectively
Go beyond base salary to find the best total compensation package
When comparing job offers, base salary is just the beginning. Total compensation includes bonuses, equity, retirement benefits, health insurance, PTO, and more. Two offers with the same base salary can differ by $20,000+ in total value when you factor in all benefits.
What to Compare
Cash Compensation
Base salary, annual bonus (and its likelihood), signing bonus, and equity grants. For equity, estimate the annual vesting value conservatively.
Retirement Benefits
A 50% 401(k) match up to 6% on a $100,000 salary is worth $3,000/year in free money. Some companies match up to 100% or have higher limits.
Health Insurance
Employer-paid premiums can range from $3,000 to $25,000+ annually for family coverage. Also consider deductibles, copays, and out-of-pocket maximums.
Time Off
15 vs 25 PTO days is a $4,800 difference on a $100,000 salary (calculated as daily rate). Don't forget sick days, holidays, and parental leave.
Location & Taxes
A job in Texas (0% state tax) vs California (9.3%+ state tax) means $9,300+ more in your pocket on a $100,000 salary. Factor in cost of living too.
Common Mistakes
- 1.Focusing only on base salary and ignoring benefits worth thousands
- 2.Overvaluing stock options in startups (they may never vest or be worth anything)
- 3.Forgetting commute costs, which can easily be $3,000-$6,000/year
- 4.Not factoring state income tax differences when relocating
- 5.Ignoring the signing bonus as a factor (it's real money, just one-time)