Over the past week, our team met with one of our KPS Guided Placement clients. After a lot of outreach and interviews, he had officially been given a verbal offer. Then a day later he received another, and then one more shortly after. As most of us would, this person was very overwhelmed and asked how to evaluate a job offer and decide which one to go with?
We replied that when evaluating a job offer, most people’s eyes shoot straight to the base salary — and for good reason. It’s the number you see first, the one that feels the most tangible. But there is so much more to the underlying value of an opportunity than the salary.
Let’s break down the key factors of any job offer and how they can be assigned a fiscal value — even if they don’t show up directly in your paycheck. In the segments below, we use an example of two different offers to show the potential “value factors” in every position.
1. Base Salary vs. Bonus Structure
- Offer A: $130,000 base, 5% annual bonus potential
- Offer B: $110,000 base, 10% annual bonus potential
On the surface, Offer A looks better — until you factor in the bonus. A 10% bonus on $110K is $11,000, potentially putting both roles in a similar light. A key factor is also consistency; how often do employees actually receive their full bonus?
To dig deeper, ask about historical payout averages and performance metrics. Some companies consistently pay full bonuses, and others rarely meet targets. And don’t forget taxes — bonuses are taxed differently and can impact take-home pay.
Compare & Contrast Tip: Factor in average payout history, not just potential. Ask how bonuses are calculated and how frequently they’re paid (quarterly vs. annually).
2. 401(k) Matching & Roth Options
- Company A: 3% match, only traditional 401(k)
- Company B: 5% match with Roth 401(k) option
Retirement contributions are one of the most underrated elements in a job offer. A 5% match on a $110K salary equals $5,500 annually — free money that grows over time. In comparison, a 3% match on $130K is $3,900. Over five years (without considering compounding interest), that’s a $8,000 difference.
Now add in the Roth 401(k) option, which allows after-tax contributions — meaning your retirement money grows tax-free. This is especially valuable for younger professionals or those expecting to be in a higher tax bracket later in life.
Compare & Contrast Tip: Multiply the match % by your expected contributions and projected tenure. Don’t forget to consider vesting schedules, which dictate when that employer match becomes yours.
3. Health, Dental, Vision, and Pet Insurance
- Plan A: $275/month premium, $500 deductible
- Plan B: $200/month premium, $1000 deductible, includes pet insurance
Benefits packages can vary wildly and have significant financial implications. Lower premiums and deductibles mean lower out-of-pocket costs. If you’re covering a family, these numbers multiply quickly.
Some companies also offer extras like HSA/FSA options and pet insurance (which might not matter to everyone — but if you have a furry companion, that could mean $400–$800/year in savings).
Compare & Contrast Tip: Use your prior year’s healthcare expenses to project costs. Add in any specialty needs (e.g., mental health, prescriptions, dental work) to get a true picture. Then from that you can make a decision into which policy is best suited for you.
4. Commuting Costs & Remote Flexibility
- Job A: 5 days/week in office, 30-mile round-trip
- Job B: 3 days/week in office, 40-mile round-trip
Let’s break that down:
- Job A: 30 miles × 5 days/week × ~50 weeks/year = 7,500 miles/year
- Job B: 40 miles × 3 days/week × ~50 weeks/year = 6,000 miles/year
Using the IRS standard mileage rate (~70¢/mile in 2025), here’s what that looks like:
- Job A commuting cost: 7,500 × $0.70 = $5,250/year
- Job B commuting cost: 6,000 × $0.70 = $4,200/year
Beyond mileage, consider non-monetary costs: time in traffic, tolls, parking, and mental fatigue. Even one extra work-from-home day per week can mean hours saved and hundreds of dollars back annually.
Compare & Contrast Tip: Estimate real mileage, include tolls and parking fees, and assign a value to your time. 10 hours/week in traffic? What could that be worth invested elsewhere?
5. Room for Growth & Internal Promotion Culture
This is harder to quantify — but not impossible. For this example, we’ll assume that;
- Company A: Average time in each position (according to linkedin browsing) ~ 3 years
- $0 value in career growth bucket
- Company B: Average time in each position (according to linkedin browsing) ~ 1.5 years
- $16,500 value associated with the first 1-2 years
Some companies have well-defined growth paths with average promotion cycles every 12–18 months. Others have fewer advancement opportunities. A quick LinkedIn search can show how current employees have advanced through the organization.
If one offer pays less now but clearly outlines a pathway to management or technical leadership with an estimates of 15% raises at each step, it could easily outpace the higher-paying but stagnant offer in a short time.
Compare & Contrast Tip: Ask what career advancement looks like after 1 year, 3 years, 5 years, and use that information to estimate your earnings growth curve.
6. Work-Life Balance & Company Culture
PTO days, sick leave, mental health support, parental leave, burnout culture
When calculating the value of PTO, it helps to find the “daily wage” and use that information to see how much you’re making for each day off. Companies nowadays are also offering unlimited PTO which can be a lucrative package if paired with the right organization. But for this example, we’ll use 15 days PTO for both offers;
- Job A: $130,000 Base/260 workdays a year = $500 per workday x 15 days PTO = $7,500 in paid time off
- Job B: $110,000 Base/260 workdays a year = $423 per workday x 15 days PTO = $6,345 in paid time off
Culture also matters: Is the company known for respecting boundaries? Do employees feel supported? Burnout can lead to long-term costs — both emotional and financial.
Compare & Contrast Tip: Calculate the monetary value of PTO and leave policies. Don’t ignore your well-being — it’s a hidden cost center.
7. Company Stability & Organizational Structure
A factor that some people forget to take into account is…company size and what stage they are in. This can impact everything from job security to agility, culture, and benefits. Consider the following tiers:
- Startup (1–100 employees): Fast-paced, high growth potential, but may offer limited structure and stability. Equity might be a perk, but funding runway is key.
- Mid-size (100–500 employees): More structure and stability, but still flexible. Often a strong balance of innovation and support.
- Enterprise (1,000+ employees): Consistent processes, better benefits, and long-term stability. May feel more bureaucratic or slower to change.
Your ideal fit depends on personal priorities: Do you value a lean, entrepreneurial environment or long-term security with well-funded resources?
Compare & Contrast Tip: Look at the company’s financial backing, turnover rates, Glassdoor reviews, and growth history. Does it align with your goals — whether that’s startup experience, rapid advancement, or long-term tenure?
How to Evaluate a Job Offer: Categorized Matrix
Here’s a simple way to visualize the full financial landscape of the two offers:
| Category | Job Offer A | Job Offer B |
|---|---|---|
| Base Salary | $130,000 | $110,000 |
| Bonus Potential | $6,500 | $11,000 |
| 401(k) Match | $3,900 | $5,500 |
| Insurance Costs | -$3,300 | -$2,400 |
| Commuting Costs | -$5,250 | -$4,200 |
| PTO Value (15 days) | $7,500 | $6,345 |
| Career Growth (Est.) | $0 | $16,500 |
| Total Value (Est.) | $139,350 | $142,745 |
As you can see, the job with the lower salary could actually deliver over $3,000 more in annual value when you zoom out and take into account the growth potential in the organization.
Conclusion: Salary Is the Starting Line — Not the Finish
In the end, a job offer is like an iceberg, the salary is what you see above water, but the true value lies beneath the surface. By assigning a fiscal value to each factor, you can make decisions that aren’t just emotional, but very strategic. If you’re currently weighing multiple opportunities or need assistance in making a career transition, we’re happy to help!
At KeyPoint Staffing, we believe the best career decisions are made when you know the full picture.
