How to Compare Job Offers Beyond Salary

Headline salary is only one cash-flow line

Two jobs with different salaries can produce a much smaller difference in usable income after deductions, pension contributions, recurring travel and location costs. Start by modelling gross pay and deductions separately. If the exact tax treatment is unknown, use an explicit effective-deduction assumption rather than pretending a generic rate is precise.

Benefits need an explicit comparison value

Employer pension contributions, insurance, equity, paid leave and other benefits are not identical to cash. If you assign a cash-equivalent value for comparison, keep it visible and conservative. Do not add a benefit at full face value if it is unlikely to be used or cannot be converted to cash.

Working time and commute change the economics

Convert annual pay into an hourly or day-rate view when working hours differ materially. Add cash commute costs and, if useful, show time cost separately rather than disguising it as a bill. A location move should also be tested with the same household cost basket in both places.

Compare the offer on the terms that can actually change

Before deciding, record which differences are contractual and which are estimates. Salary, contracted hours and employer pension terms can usually be verified from the offer; commute cost, bonus probability, future equity value and relocation spending may need ranges instead. Keeping those categories separate prevents a speculative benefit from being treated like guaranteed cash.

Keep a decision record

Save the assumptions used for both offers and note the break-even points that matter to you, such as the extra monthly take-home needed to justify a longer commute or the value assigned to additional leave. If a later negotiation changes one term, update that line rather than rebuilding the comparison from memory.