You Got a Job Offer — But Is the Paycheck Enough?
Written by
Laura Beck
Edited by
Ashleigh Ray
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
So, you got the job. Congratulations! But before you pop the champagne, there are some things to consider, especially with inflation on the rise and the cost of living in most areas continuing to skyrocket.
In the ever-evolving landscape of career advancement, a job offer isn’t just about the number on the paycheck. GOBankingRates spoke to career and financial experts to figure out exactly how to know if your offer is enough — and if it’s not, how to negotiate for more or walk away.
Determining Your Market Value
Kinsley James of Nihona Aubaito, a website that helps people find part-time jobs in Japan, says the first thing to do is figure out how much money you’re worth in the job market.
You can do this by looking at websites like Indeed, Salary.com, and GlassDoor or info from the Bureau of Labor Statistics that tells you how much people doing similar jobs make.
Danilo Godoy of Wahojobs, who specializes in connecting people with remote work, side gigs, and freelance opportunities, shares that it’s important to talk to other people in your same field to find out what they’re being paid for similar jobs.
“Knowledge sharing among peers can provide valuable insights,” he said. You can connect with them on places like LinkedIn, attend networking events, and even ask friends if they know anyone in your same field.
Finally, consult with mentors, career coaches, or trusted colleagues for their insights and perspectives. What do they think you’re worth in the job market and how can you leverage your skills to get the best job offer possible? Nothing compares to friendly advice from people who are in your corner.
What Do You Need To Live?
James shares that, before anything else, you need to figure out how much money you want to make.
To do this, look at how much things cost where the job is. Think about rent, getting around, and buying food. Remember to save some money for emergencies and when you’re not working anymore.
Lastly, think about what you really need money for. Do you have loans to pay or kids to take care of? And don’t forget to factor in things like entertainment and travel.
In other words, create a comprehensive budget to know what the bare minimum is you need to survive. This is your bottom-line number, and you can’t go below it — having this information puts you in a powerful position because you know what you need.
Factor In Future Growth
James suggests that you should think about how much money the job pays compared to what you want to do in your career in the long run. Is this job a step towards getting better-paying jobs later on?
Think about whether this job can help you learn new things and meet people who could help you. By figuring out if this job can help you get better at important skills and move up in your career, you can decide if it’s a good choice for your financial goals. Maybe you’re willing and able to accept a slight reduction in pay now for major advancement in the future.
Research the company — ask to speak to other employees, HR, and look at websites like GlassDoor to see what the company culture for growth is like.
Time To Negotiate
According to James, negotiating is an important part of the process.
“Negotiating a job offer is a common practice, and when done professionally and respectfully, it can lead to a mutually beneficial outcome,” he said.
First, you need to take into account job market conditions. In a competitive job market, you might have more room to negotiate. In a recession, you might have to be more flexible.
Regardless, start off by letting the company know you’re excited about the job and really want to do well. Give some real reasons for wanting more money, like the research you did on how much similar jobs pay and why you’re a good fit. Be open to finding a middle ground and discussing things like different work hours or more time off if they can’t give you more money right away.
Also, if you have another job offer, and are willing to walk away from this one, you can bring that up, as well.
Sophie Bryan, the founder and Chief Workplace Culture Consultant at Ordinarily Different, adds that you should keep it professional and polite.
“Avoid making demands or coming across as entitled,” she said. “Instead, focus on the value you can bring to the company and how a higher salary would reflect your commitment and dedication.”
Know When To Walk Away
Knowing when to walk away from a job offer that falls short in terms of compensation can be hard, but it’s an important skill.
If the offered salary doesn’t align with your market value and the cost of living, or if the negotiation process reveals an unwillingness to meet your reasonable expectations, it might be a sign that the opportunity might not be the best fit.
In the end, it’s about finding a job that respects your contributions and compensates you fairly.
More From GOBankingRates
