It's the best of all possible worlds: You've got competing job offers from two top-notch companies.
Now what?
"When sizing up job offers, people often pay too much attention to money and too little to what the employer is like," says Katina Leodas, a principal at Leodas Solymar, a retained executive-search firm in Cambridge, Mass.
"Most surveys show that money doesn't rank at the top for job satisfaction--things like career path, lifestyle, family and location come before pay. Candidates should look for a good 'fit' with the employer."
There is no mathematical formula to punch into a computer when considering multiple offers. You've got to make a list of what's important to you and your family and ask two basic questions: What do you want? What are you willing to trade to get it?
Start with the important stuff first--current duties and career advancement--and then move on to the work environment at your prospective employer. Next, factor in the financials, including base pay, bonus, stock options, benefits, vacation time and retirement.
If the competing companies offer a similar but not equal salary, think what you'll accept in lieu of money. Extra time off at Christmas to spend with your family, increased health benefits or unrestricted use of a company car might be reasonable starting points.
Finally, include in your calculation lifestyle concerns such as length and type of commute. Driving means you can't read the paper each morning on the way to work, while taking the train allows you to get an early jump on the day's tasks or even snooze.
However, riding mass transit means occasionally sitting next to people you'd prefer not to meet. Relying on public transportation also means you don't have to fret about fender benders and can save a bundle on auto insurance.
If the job requires a move to another city or state, be sure to consider your spouse's employment prospects and the quality of local schools. Your new employer may be able to help your spouse find a job.
Don't overlook a basic point: $150,000 in New York won't go as far as $75,000 in Omaha. Factor in the cost of housing, everyday expenses, taxes and insurance.
Pencil these points out by ranking each on a scale of 1 to 5, with 5 being the highest rating. Add up the scores for both offers, and you have a solid foundation for making the right decision.
If you're just starting out or if you're early in your career, accepting an offer from a blue-chip company might be a good strategy. No job is forever, and having a prestigious company on your résumé is advantageous and almost certain to give you a leg up on the next job.
However, you must balance the snob appeal of a well-known company with what may be a more challenging assignment with greater responsibility at a lesser-known outfit. The experience, especially if you can build something from scratch, may be more valuable in a future search than a big name on the résumé, especially if you'll just be a galley slave pulling on the oars at the larger enterprise.
Remember that the money doesn't necessarily follow the big name. But a large company may offer more stability--or, if nothing else, a better severance package in an economic downturn.
Consider all counteroffers cautiously. Many headhunters recommend against accepting a counteroffer from your current employer because your hunt for another job suggests it's time to move on, and those who accept a counteroffer generally leave within two years. So, unless you're in love with your current job, it's generally not a good idea to accept a counteroffer, no matter how lucrative.
How much the company wants you may be a factor in your decision. Do you want to be the second choice at a major company or the first choice at a smaller shop?
Negotiate honestly and forthrightly with your prospective employer, but don't quibble about every little thing. You'll have to work with these folks, and you don't want to poison the atmosphere before you start.
The company has checked
In your stampede to get an offer, you may not have paid attention to how you were treated during the interview. Now's the time to ask another basic question: Do I want to work with these guys? If the interviewer let you sit in the hall for 20 minutes while yapping on the phone, there's no reason to think it will be any different once you're on the payroll.
Balance your ambition, interest and skills with the opportunities when weighing competing job offers. It's called hard-headed, enlightened self-interest: What's best for me? Do this carefully and get it right, because there's no surer way to kill a relationship than to back out of a deal after accepting a job offer.
These basic techniques will serve you well at privately held companies or such corporations as Intel, Microsoft, Cisco Systems, Boeing, JPMorganChase or Chevron.
"Don't be dazzled by money," Leodas says. "Know what factors are important to you, and know the value of the offer."
Here's a checklist of basic things to consider when weighing competing job offers:
Base Salary: In addition to the base salary, consider raises, bonuses and stock options. Do you get an annual raise? If so, is there a formal performance review? What are the criteria for a raise? What is the average raise?
Bonus: Is the bonus based on individual performance or the company's profitability? When are bonuses awarded? Are you required to take it in cash, boosting your taxable income, or can you take additional stock?
Stock Options: What's the strike price for your stock options? What's the class of stock offered? How long must you hold it before you can consider selling?
Retirement: Check your prospective employer's 401(k) program and the maximum employer match. Rolling over your existing retirement-savings program to a new employer is routine and easily handled after you start your new job.
Vacation: Ask how much vacation you'll have, if you can take a vacation during your first year and if you can carry vacation time into the next year, especially if you're planning a dream trip.
Health Insurance: Check the insurance carrier, the co-payment and how much it will cost to add your family to your policy. Chances are, your doctor takes the insurance, but double check. Ask about the cost of increased coverage for you and your family, especially if you have a child with special needs. If health and dental are covered, ask about corrective lenses and fillings.
Fitness: Inquire if they have an on-site gym, and if they offer discounts or a reimbursement program if you join a local health club.
Company Car: If you have the use of a company car, nail down if it's available for personal use after hours and on weekends. If you can use the vehicle for personal use, is insurance pro-rated?
Other benefits: Do you get a company-issued cell phone, PDA or laptop? If you will be traveling a lot, who gets the frequent flier miles, you or the firm?
Relocation: Be sure to consider the cost of living in your new city or state. Factor in taxes and the cost of housing, heating and cooling. If your kids will attend private schools, include tuition and expenses.
Intangibles: Don't overlook corporate culture and personal "fit." Learn as much as you can about the company and your co-workers. If your prospective boss struck you as a psycho or a weasel during the interview, a sudden outbreak of sanity or forthrightness by your start date is unlikely.
Gut Check: If everything pencils out but your gut shouts "No!" review your calculations, because you may have missed something. Then ask a basic question: Has your gut misled you in the past?
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