How to Evaluate a Job Offer (New Grad Checklist)

TL;DR — The salary number is only part of the offer. Benefits are roughly 30% of what an employer actually spends on you, so add the 401(k) match, health coverage, bonus, and equity to the base before you compare anything. Then weigh growth, culture, and cost of living — and put competing offers in a side-by-side table so you're deciding on the whole picture, not one line.

Your first real offer is exciting, and the instinct is to look at the salary, feel a rush, and say yes. Slow down for a day. An offer is a package, and two offers with the same base can be worth very different amounts once you account for what's bundled around the pay. This is a checklist for reading the whole thing — what to add up, what the benefits jargon means, and what should give you pause — so you accept the offer that's actually best for you, not just the one with the biggest number on the first page.

What "total compensation" really means

Base salary is the headline, but it isn't the whole story. According to the U.S. Bureau of Labor Statistics, benefits make up about 30% of what private employers spend on an employee — wages and salaries are roughly 70%, and benefits the rest. So a salary figure alone understates the offer by nearly a third.

Total compensation is everything of value you receive. Before you compare two offers, add up:

• Base salary — your fixed annual pay.
• Bonus — sign-on, annual, or performance. Note whether it's guaranteed or a "target" you might not hit.
• Equity — stock options or RSUs at larger or startup employers. Treat this as upside, not guaranteed cash, especially at a private company where you can't easily sell.
• 401(k) match — free money, covered below.
• Employer-paid insurance — the share of your health premium the company pays is real compensation you'd otherwise pay yourself.

A $68,000 offer with a 5% match and fully covered health insurance can beat a $72,000 offer with no match and a pricey plan. Run the numbers before you let the bigger base decide for you.

How to decode the benefits

Benefits are where the real differences hide, and they come wrapped in jargon. Here's what the common terms mean for a first job:

• 401(k) match. The company adds money to your retirement account when you contribute. A full match in the 4–6% range is considered good, and the most common formula is a dollar-for-dollar match on the first 3% plus 50 cents on the dollar on the next 2%. Contribute at least enough to get the full match — anything less is leaving pay on the table.
• Vesting. The match isn't always yours immediately. Immediate vesting means it's yours from day one; cliff vesting means you own none until you've stayed a set period (say, three years), then all of it; graded vesting means you earn it gradually. Your own contributions are always 100% yours — only the employer's match vests. If you might leave in under two years, a long cliff matters.
• Health insurance. Check the monthly premium (what comes out of your paycheck), the deductible (what you pay before coverage kicks in), and whether dental and vision are included. A "free" plan with a $6,000 deductible can cost you more than a plan with a small premium.
• PTO. Paid vacation, sick days, and holidays. "Unlimited PTO" sounds generous but can mean people take less — ask what's typical on the team.
• Extras that add up. Tuition reimbursement, a learning budget, a 401(k) on top of a pension, parental leave, or a commuter stipend can be worth thousands.

For a deeper walk through your first paycheck and what each deduction means, see understand your paycheck and benefits.

What to look for beyond the money

Pay matters, but your first job is also where you build skills and a track record. Weigh these:

• Learning and growth. Will you be mentored, or thrown in to sink? Is there a clear path to promotion or just a vague "lots of opportunity"? In your first few years, what you learn often matters more than a few thousand dollars in base.
• The team and manager. You'll spend most of your week with these people. The interview is your data: were they organized, respectful of your time, and honest about the role — or evasive and chaotic?
• The work itself. Does the day-to-day match what you actually want to do, or just the title you wanted? A great-sounding role doing work you'll dread is a bad trade.

If you're still deciding between roles or unsure a job fits you in the first place, our Evaluate Fit tool scores how well your background matches a posting before it ever becomes an offer.

How to read culture and location tradeoffs

Culture is hard to see from outside, but you have signals. How fast did they respond? Did they answer your questions to the interviewer straight, or dodge? Glassdoor and a quick search for "[company] reviews" help, but weight your own experience of the process heavily — it's a preview of how you'll be treated as an employee.

Location and remote change the math:

• Cost of living. An $80,000 offer in a high-cost city can leave you with less than $65,000 somewhere cheaper. Run both through a cost-of-living calculator before comparing.
• Commute. A long daily commute is a real, unpaid cost in time and money. Factor it in.
• Remote, hybrid, or in-office. Decide what you actually want. Remote saves commuting but can make a first job lonelier and mentorship harder; in-office builds relationships faster. There's no universally right answer — only the one that fits you.

Red flags that should give you pause

Most offers are straightforward. Slow down if you see:

• Pressure to decide today. "This offer expires tonight" is a tactic. A good employer gives you a few days.
• Vague or missing details. No written offer, a hand-wave about benefits, or a base "to be determined after a probation period."
• Pay well below market with no explanation, or a number that only works if you hit aggressive commission targets.
• A package that's all bonus or all equity, with a low base. Bonuses and pre-IPO equity can evaporate; you live on the base.
• Churn signals — if everyone who interviewed you seemed new, or reviews mention constant turnover, the role may not be stable.

One red flag isn't a deal-breaker. A cluster of them means ask harder questions before you sign.

How to compare offers side by side

When you have more than one offer, get them out of your head and onto a page. Score what matters most to you — there's no universal "best" package.

                       Offer A          Offer B
Base salary            $70,000          $66,000
Bonus (target)         $3,000           $0
401(k) match           3% (3-yr cliff)  6% (immediate)
Health premium/mo      $180             $40
PTO                    15 days          20 days
Est. total comp        ~$75,000         ~$76,000
Growth / mentorship    unclear          strong, clear path
Location / setup       HCOL, in-office  remote, lower COL
Gut feeling on team    fine             really liked them

Fill in real numbers, then ask which column wins on the rows you care about most. Often the offer with the smaller base wins once the match, premiums, growth, and cost of living are in. Decide on the whole table, not the top row.

After you decide

If an offer is close but not quite there, you can usually ask — politely and once — for more. Knowing the market rate and how to make the ask is its own skill; see salary negotiation for new grads. And whatever you decide, get the final terms in writing before you give notice anywhere else or turn down another offer. An offer you understood fully is one you won't second-guess.

Sources

• U.S. Bureau of Labor Statistics — Employer Costs for Employee Compensation summary
• Fidelity — How does a 401(k) match work? Average 401(k) match
• University of Southern California Career Center — What to consider when evaluating a job offer