Which Job Offer Should You Take?
August 16, 2016A few weeks ago, I was having a wonderful conversation with a young woman trying to decide what to do with her life. She recently received multiple job offers in multiple states. I asked her how she was weighing her options. She looked at me as if to say, “Why would you even ask this question” and she replied that she would take the offer that paid the most. I told her that she should focus on the net, not gross amount.
Look at net vs gross paycheck. State taxes vary wildly in the U.S. Some states like Florida and Texas do not tax your income and states like New York and Maryland not only impose tax taxes, but some of their cities also impose taxes. This can take a big bite out of your income. Consider doing a paycheck calculator so you can see how little or how much of your paycheck you get to keep based on what state you live in.
Review the benefits from each company. Not only can taxes take a bite out of your paycheck, so can your benefits. If possible, find out how much the average healthcare premiums are and compare. Taking a job that pays $6,000 more with a $250 per paycheck healthcare premium will eat away the extra money. Ask about other benefits like 401(k) plan matching, contributions to medical savings plans and generous time off as well.
Review cost of living by states. In addition to taxes, consider the daily cost of living, such as housing costs, to see how far your dollars can go. After all, you still want a life. Estimators like CNN’s cost of living calculator can help you compare what income you need to maintain your life style by city.
Potential job growth. How much room to grow do you have with each opportunity? What programs do they have to help you grow professionally? Will your future organization pay for additional education and certifications?
Don’t just look at the gross salary. Calculate the actual net to you. Taking a few moments to really evaluate job opportunities can go a long way to helping you make the best decision for your future.