How to Evaluate a Job Offer Beyond Salary

The Number on the Offer Letter Is Not the Whole Story

You get the call. They want to hire you. The recruiter says a number, and your brain immediately starts doing math — mortgage payments, student loans, whether you can finally upgrade from that apartment with the broken dishwasher.

But here is the thing: two jobs with identical salaries can differ by $20,000 or more in actual value once you account for benefits, equity, retirement contributions, and the hidden costs of the role itself. Making a decision based on base salary alone is like buying a house based only on the listing price without checking property taxes, HOA fees, or whether the foundation is cracked.

This guide walks through everything you should evaluate before signing.

Total Compensation: The Real Number

Total compensation is the sum of everything the company pays you or pays on your behalf. Here is how to calculate it.

Total Compensation =
  Base Salary
  + Annual Bonus (expected, not maximum)
  + Equity/Stock (annualized value)
  + Employer 401(k) Match
  + Health Insurance (employer-paid portion)
  + HSA/FSA Contributions
  + Other Benefits (tuition reimbursement, wellness stipend, etc.)

A concrete example: Offer A pays $95,000 base. Offer B pays $88,000 base. At first glance, Offer A wins. But look deeper:

Offer B, despite the lower base salary, is worth nearly $30,000 more per year. This is not a rare scenario. It plays out constantly, especially when comparing large companies with strong benefits packages against smaller companies that lead with salary.

Health Insurance: The Benefit That Can Make or Break a Deal

Health insurance is often the single most valuable benefit after salary, and the one people pay the least attention to during offer evaluation.

Ask these questions before accepting:

• What is your monthly premium? Employer-sponsored plans still require employee contributions. The difference between a $200/month premium and a $600/month premium is $4,800 per year.
• What is the deductible? A high-deductible plan ($3,000+) can cost you thousands more in a year when you actually need care.
• Is your doctor in-network? Switching doctors is not just inconvenient; out-of-network costs can be dramatically higher.
• Does the plan cover your specific needs? Mental health, fertility treatments, physical therapy, and prescription drugs vary significantly between plans.

If you have a family, multiply every cost by the number of people on your plan. A company that covers 90% of family premiums versus one that covers 70% can mean a difference of $5,000-$8,000 per year coming out of your paycheck.

Equity and Stock Options

Equity compensation is where offers get complicated. Here is a quick framework.

Public Companies (RSUs)

Restricted Stock Units have a real, calculable value. If you are granted $60,000 in RSUs vesting over 4 years, that is roughly $15,000 per year in additional compensation. The risk is that the stock price could go up or down, but RSUs always have some value as long as the company is publicly traded.

Startups (Stock Options)

Stock options at a private company are a bet. They could be worth millions or worth nothing. When evaluating startup equity, ask:

• What is the current 409A valuation (fair market value)?
• How many total shares are outstanding (what percentage of the company do your options represent)?
• What is the exercise price, and can you afford to exercise if you leave?
• What is the company's realistic path to a liquidity event?

A common mistake is treating startup equity at its "potential" value. Until there is a liquidity event — an IPO, acquisition, or secondary sale — your options are illiquid and possibly worthless. Factor equity into your decision, but do not count on it to pay rent.

Retirement Benefits

The difference between a 3% and 6% 401(k) match on a $90,000 salary is $2,700 per year. Over a 10-year career at that company, assuming 7% annual returns, that gap compounds to roughly $40,000 in retirement savings.

Other retirement details worth asking about:

• Vesting schedule: Some companies match generously but require 3-4 years before the match is fully yours. If you leave before vesting, you forfeit some or all of the employer contribution.
• Immediate eligibility: Some companies make you wait 6-12 months before you can participate in the 401(k). That is 6-12 months of missed matching.
• Mega backdoor Roth: For high earners, the ability to do after-tax contributions with in-plan Roth conversions can be worth significant tax savings over time.

Paid Time Off and Flexibility

PTO

The national average for PTO in the U.S. is about 11 days for new employees, according to the Bureau of Labor Statistics. But offers range widely — from 10 days at some companies to "unlimited" PTO at others.

Be skeptical of unlimited PTO. Research consistently shows that employees at companies with unlimited PTO take fewer vacation days on average than those with a fixed allotment. Ask the hiring manager how many days people on the team actually take per year. If no one can answer that question clearly, it is a yellow flag.

Remote and Hybrid Flexibility

A fully remote role saves you commute time and commute costs. If you are currently spending $300/month on gas and parking, that is $3,600 per year in hidden savings, plus the value of the time you get back. A 45-minute commute each way is 7.5 hours a week — nearly a full workday — spent in a car or on a train.

Remote work also expands your geographic options. A $110,000 salary in a city where the cost of living is 30% lower than your current location stretches significantly further.

Growth and Career Trajectory

This is the hardest factor to evaluate, but it might be the most important one over a 3-5 year horizon.

Ask yourself:

• Will I learn new, marketable skills in this role? A lateral move that teaches you nothing new is a move that shrinks your future earning potential.
• What does the promotion path look like? Ask the hiring manager how many people on the team have been promoted in the last two years and how long it typically takes.
• Who will I work for? A strong manager who mentors and advocates for their team is worth more than a $10,000 salary bump. A terrible manager will make you miserable regardless of pay.
• What is the company's trajectory? A growing company creates more opportunities for advancement than a stagnant one. Look at whether they are hiring, launching new products, and investing in R&D.

The Two-Year Test

Ask yourself: "If I take this job and leave in two years, what will I have gained?" If the answer is meaningful new skills, a strong network, a notable company on your resume, and measurable accomplishments, the role is probably worth it even if the salary is not the highest offer on the table.

Red Flags to Watch For

Not everything that looks good on paper works out in practice. Watch for these warning signs:

• The offer has an aggressive deadline. A company that pressures you to decide in 24-48 hours is either desperate or does not want you comparing their offer to others. Reputable employers give you at least a week.
• They will not put the full offer in writing. If it is not in the offer letter, it does not exist. Verbal promises about future raises, title changes, or remote work flexibility need to be documented.
• High turnover on the team. Ask how long the last person in this role stayed, and how long the average tenure is on the team. If people consistently leave within a year, that tells you something the recruiter will not.
• The role is vaguely defined. If the hiring manager cannot clearly explain what success looks like in the first 6 months, the role may be poorly scoped. You will end up doing whatever falls through the cracks.

Make a Decision You Will Not Regret

Evaluating a job offer is ultimately about understanding the full picture — not just what you earn on day one, but what you gain over the tenure of the role. Calculate total compensation, understand the benefits, assess the growth potential, and trust your read on the people and culture.

If you are preparing to negotiate a better offer or want to position yourself for the strongest possible outcome, Superpower Resume can help you build a resume that lands multiple competitive offers, so you are always choosing from a position of strength.

Sources

• Bureau of Labor Statistics: Employee Benefits Survey — National data on paid leave, health insurance, and retirement benefits across U.S. employers
• Harvard Business Review: How to Evaluate a Job Offer — Framework for weighing compensation, growth, and culture in offer decisions
• SHRM Employee Benefits Survey — Comprehensive annual survey on trends in employer-provided benefits