Evaluating a Job Offer
Once you graduate, you need to make sure that your next career move is the right one. When you evaluate a position description or job offer, make sure you consider the following:
- What is the cost of living in the area?
- Is your base salary at market level?
- Will you receive bonuses (e.g., signing or annual?)
- When will you be eligible for salary reviews and promotions?
- Will you receive medical, dental, and life insurance? How much will you contribute?
- Will you have access to retirement programs, stock options, or pension plans?
- Is there short and long-term disability?
- How does vacation time accrue? Is sick leave “use it or lose it?”
Keep in mind: in many cases it is better to accept a higher salary in lieu of bonuses. For example, a salary of $60,000/year is better than $55,000/year with a $5,000 signing bonus because your raise will be based on your salary, not your bonus.
Then, consider what other benefits you might receive:
- Will you receive relocation expenses? Do they have flex time?
- Is there a tuition reimbursement plan?
- Are there professional development opportunities or other trainings?
- Matching retirement contributions? Make sure you have a plan for retirement.
- Do company values match yours? Is the company image/reputation positive?
- What is the office environment? Hybrid, remote, in-person?
- What was your impression of employee morale?
- Is the company profitable? Financially stable?
Get it in writing: You cannot evaluate an offer if you do not have it in writing. Verbal offers are not binding and without written proof, you cannot verify the specifics of a job offer. Ask the employer to clarify any details in your offer letter.
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Find how much you should expect to make with this calculator supported by data from the Bureau of Labor Statistics.
Negotiating a Job Offer
73% of employers would negotiate salary. 55% of workers don’t ask. That being said, there are risks to negotiating! Know when to stop.
Salary negotiation happens early, usually during the interview, and often starts because the employer is trying to determine if they can afford you. Before you begin negotiating, ask yourself:
- Do you have a legitimate reason to negotiate?
- How do you plan on conducting the conversation?
- Are your skills, experiences, and education worth more than the offered amount? Do the research!
- Does the salary reflect the cost of living in the area and compare favorably to the industry average?
- Do you have multiple offers with similar compensation?
Handling Salary Discussion
- Restate your interest in the position, reinforcing how well your skills match the position.
- Build your case! Why are you negotiating the offer? Cost of living? Market value? Why are you worth more?
- Based on the case you presented, ask the employer if they can provide more compensation.
- When asked, state an acceptable salary range.
- Explore creative solutions if necessary. Consider negotiating benefits, perks, signing bonuses, relocation expenses, hybrid and virtual options, work schedules, or start dates.
Transitioning Financially Out of Grad School
Although student loan debt is estimated at $1.77 trillion, 44% of U.S. adults admit they do not have a budget. According to the same survey, 29% of U.S. adults reported not paying their bills on time and/or having debt in collections, and 44% of adults give themselves a grade of C, D, or F on their knowledge of personal finance.
To make the transition:
- Update the budget you made while you were in school. Determine your income, expenses, and goals (short-and long-term). Keeping track of your expenses will help you cut unnecessary costs and work towards your goals.
- Set up a student loan repayment plan. Log on to studentloans.gov to check your balance, use the online calculator to estimate payments under each plan, find contact information for your loan servicer, and set up a plan that works for you.
- Set and work towards life goals. Want to travel? Plan on getting married? Having children? Buying a house? A car? Commit to saving money for both life goals and emergencies.
- Avoid incurring additional credit card debt. Although it’s sometimes necessary to borrow for major purchases like a car or house, be sure to keep your credit history strong. Paying your bills in full on time will help increase your credit score. You can check your credit score for free three times a year.
- Invest in your 401k, 403b, or other retirement account. It’s never too early to start saving and investing. Contributing to your company or individual retirement account can earn you a lot of money in the long run. Learn if your employer will match your contributions. Talk to your bank, credit union, employer, or a financial advisor for personal advice to start your savings plans.
Loan Repayment
If you took out student loans to fund your graduate studies, make sure you budget for repaying those loans. Paying off your student loans is not just about financial responsibility; it’s an investment in your future. Every payment brings you closer to financial freedom and peace of mind, allowing you to focus on your career and personal aspirations without the weight of debt holding you back. Remember, the sooner you pay off your loans, the less interest you’ll pay over time, which translates to real savings in your pocket. Create a strategic plan, consider different repayment options, and stay proactive.