You got the job offer. Congratulations. You probably want to pop some champagne, call your mom, and sign the PDF immediately because you’re tired of interviewing.
Don't.
That offer letter isn't a winning lottery ticket; it's a legal contract that dictates how you spend the majority of your waking hours for the next few years. Most candidates glance at the base salary, see a number that looks okay, and ignore the rest. They don't realize that a high base salary can be completely eroded by terrible health insurance, a non-existent 401k match, or a culture that expects you to work 60 hours a week.
You need to stop acting like a desperate applicant and start thinking like a business. You are selling your labor. They are buying it. Make sure the price is right. For more on the mechanics of saying "yes," check out our guide on accepting job offers successfully.
The Scenario
Here is what usually happens. You get the email. "We are pleased to offer you..." You scan for the salary. It’s $5k more than you make now. You feel rich. You skim the benefits PDF—something about a deductible and "competitive" PTO. You sign.
Six months later, you realize the "competitive" PTO is actually just 10 days, and you have to use them for sick days too. The health insurance has a $5,000 deductible, so that $5k raise is already gone if you twist your ankle. And the "great culture" they bragged about? It means mandatory "fun" events at 5 PM on Fridays when you just want to go home. You didn't navigate the offer; you got played by it.
The Old Way vs. The New Way
The old way of evaluating job offers was simple and naive. The new way is cynical, mathematical, and necessary.
| Feature | The Old Way | The New Way |
|---|---|---|
| Focus | Base salary is king. | Total Compensation (TC) is the only metric. |
| Benefits | "They have dental, cool." | calculating premiums, deductibles, and 401k vesting schedules. |
| Culture | Believing the "We are a family" speech. | Stalking employees on LinkedIn to see if they leave after 1 year. |
| Negotiation | "I hope they offer enough." | "I have data that says this is low." |
| Decision | Gut feeling and excitement. | Spreadsheet analysis of net income and hourly rate. |
1. Calculate the "Real" Hourly Rate
The base salary is a lie if you don't factor in the hours. $100,000 a year sounds great at 40 hours a week. It sounds terrible at 60 hours a week.
If the culture requires you to be "always on," answering Slacks at 9 PM and working weekends, your hourly rate plummets. Ask specifically about on-call rotations, expected working hours, and how often people work weekends. If they say "we work hard and play hard," that means "we work hard and you will burn out."
Do the math. If Offer A is $120k for 60 hours/week and Offer B is $100k for 40 hours/week, Offer B pays more per hour.
2. Decode the Health Insurance Hieroglyphics
HR loves to gloss over this. They'll say, "We cover 80% of premiums!" Great. But what is the plan?
If the plan is a High Deductible Health Plan (HDHP) with a $6,000 deductible and no HSA contribution, you are effectively taking a pay cut if you ever need a doctor. Look at the Out-of-Pocket Maximum. Look at the monthly premium coming out of your paycheck.
I’ve seen "higher" offers that result in lower take-home pay because the employee contribution for a family plan was $1,200 a month. Read the fine print.
3. Investigate the "Unlimited" PTO Scam
"Unlimited PTO" is the biggest scam in the modern tech industry. It sounds like freedom. In reality, it means "No Accrued Liability for the Company."
When you leave a job with accrued PTO, they have to pay you out. With unlimited PTO, they pay you nothing. Furthermore, studies show people take less time off with unlimited policies because there is no clear guideline, and they fear looking like slackers.
Ask: "What is the average number of days off taken by the team last year?" If they can't answer, or if they say "it varies," assume it's zero.
4. Stalk Your Future Manager
Your manager determines your happiness more than your CEO. You can love the company mission, but if your boss is a micromanager who texts you at 6 AM, you will be miserable.
Go on LinkedIn. Find people who used to report to this manager. Where are they now? Did they stay for 3 years or 3 months? If everyone leaves this manager after 6 months, run.
During the interview, ask the manager: "When was the last time you promoted someone on your team, and why?" If they struggle to answer, career growth is a myth there.
5. The "Is This Place Toxic?" Vibe Check
Ignore the ping pong tables and the beer taps. Those are distractions. Look at the faces of the people walking around (or on the Zoom call). Do they look tired?
Ask to speak to a peer, someone who would be on your level. Ask them: "What is the one thing you would change about working here?" If they say "Nothing! It's perfect!", they are lying or brainwashed. If they give you a real, nuanced answer like "The cross-team communication can be slow," that's a good sign of honesty.
The Real Numbers
Let's look at two hypothetical offers. Offer A looks better on paper, but Offer B is the winner when you do the math.
| Component | Offer A (The Trap) | Offer B (The Real Deal) |
|---|---|---|
| Base Salary | $110,000 | $100,000 |
| Health Premium (Yearly) | -$6,000 (High employee cost) | -$1,200 (Company covers most) |
| 401k Match | $0 (No match) | $4,000 (4% match) |
| Commute/Remote | -$5,000 (Gas/Parking/Time) | $0 (Fully Remote) |
| Bonus | "Discretionary" (Usually $0) | Guaranteed 5% ($5,000) |
| Real Value | $99,000 | $107,800 |
Offer A dazzles with the base number, but Offer B puts more money in your pocket and likely offers a better quality of life.
Frequently Asked Questions
Q: Should I negotiate if the offer is already good? A: Yes. Always negotiate. The first offer is never their best offer. It is the "let's see if they take the bait" offer. Even if the salary is fair, negotiate for something else. Ask for a sign-on bonus. Ask for extra equity. Ask for a dedicated education stipend. If you don't ask, you are leaving money on the table. The worst they can say is "we can't move on that number," and you are back where you started. They won't rescind the offer just because you asked (unless you are a jerk about it).
Q: How do I value stock options vs. RSUs? A: Treat stock options in a private startup as a lottery ticket with a value of zero. Seriously. 90% of startups fail. If they succeed, your options might be diluted to nothing. Do not take a massive pay cut for "equity" unless the company is late-stage and has a clear path to IPO. RSUs in a public company are different; they are as good as cash (mostly). Calculate them into your total comp, but be aware of the vesting schedule. If they vest over 4 years, you only get 25% per year.
Q: What if the company refuses to negotiate salary? A: If they say the salary is "fixed" or "at the top of the band," pivot to one-time payments. Sign-on bonuses come from a different budget bucket than recurring salary. It's easier for a manager to approve a one-time $10k check than a permanent $10k raise. You can also negotiate for a "salary review" at 6 months instead of 12 months. Get that in writing. If they refuse to negotiate anything, that is a red flag about how rigid and cheap they will be once you work there.
Q: Is a verbal offer worth anything? A: No. A verbal offer is worth the paper it's written on—which is nothing. Do not give notice at your current job until you have the signed offer letter in your inbox. I have seen verbal offers vanish because of "hiring freezes," "budget restructuring," or the CEO changing their mind on a whim. Until you have the PDF signed by both parties, you are still unemployed. Protect yourself.