Job Offer Comparison Score: Comparing Total Compensation, Not Just Salary
Base salary is the easiest number to compare between two job offers, which is exactly why it's tempting to stop there — but it's often not even the largest source of difference in total value between offers.
Bonus structure (guaranteed vs. discretionary, and how consistently it's actually paid out), health insurance premiums and coverage quality, retirement matching, and paid time off all have real dollar value that a salary-only comparison ignores entirely.
Equity Needs a Discount, Not Face Value
Offer letters often quote equity at a headline valuation, but private company equity in particular carries real uncertainty — vesting schedules, the chance the company's valuation changes before you can sell, and liquidity restrictions all mean equity shouldn't be compared to cash compensation at full face value.
Commute and Location Costs
A higher salary in a higher cost-of-living area, or one that adds a significant daily commute, can net out to less real value than a lower salary somewhere cheaper or fully remote. Commute time in particular is easy to underweight when comparing offers on paper, since it doesn't show up as a dollar figure but does show up as lost hours every week.
Stability and Growth Aren't Just Sentiment
A lower-paying offer at a more stable company, or one with a clearer path to promotion, carries real financial value in reduced job-search risk and future earning trajectory — factors worth weighing deliberately rather than treating the comparison as purely about this year's total compensation number.
Frequently Asked Questions
How much should benefits and PTO count toward comparing offers?
Health insurance premiums, retirement matching, and PTO all have calculable dollar value — a strong 401(k) match alone can be worth several thousand dollars a year — so they should be added into a total compensation comparison rather than treated as a tiebreaker after salary.
Does cost of living change which offer is "better"?
Often significantly — a higher salary in a high cost-of-living area can net out to less real purchasing power than a lower salary somewhere cheaper, especially once housing costs are factored in. Comparing offers by real (cost-of-living-adjusted) income is more useful than comparing raw salary numbers.
Should I weigh company stability or growth potential in the score?
It's worth factoring in deliberately even though it's harder to quantify — a lower-paying but more stable role, or one with a clearer promotion path, carries real financial value in reduced job-search risk and future earning trajectory that a single-year compensation comparison won't capture.
Is equity compensation worth including at face value?
No — private company equity in particular should be discounted from its headline valuation to account for vesting requirements, the chance the valuation changes before it can be sold, and general liquidity restrictions, rather than compared directly against guaranteed cash compensation.
This article is for informational purposes only. See our disclaimer.