It is the time of year that each undergraduate has been waiting for! The time where all your many years of hard work have paid off, you are months away from receiving your college degree and are ready to start your career. These past years in college have been preparing you to become the best employee for your desired career. You have learned the necessary education requirements, certifications, work experiences, etc. to get your dream job. Essentially you have developed yourself to be the best fit for your employer, but have you ever thought if your future employer is the best fit for you? It’s easy to get carried away once receiving a job offer from a well-respected employer but this is a huge decision that will impact your career and it should not be made in haste. Here are some tips to consider when determining whether to accept a job offer:
- Fit Within the Company
- What is their mission statement?
A mission statement is a summary of an organization’s goals and values. The quality and content of a company’s mission statement can affect every part of a business, including its customers and employees. It is important for you as a prospective employee to learn and identify with the company’s mission statement because of the impact it has on the work you will do and your overall success at the company.
- What are their core values?
Core values are personal values that guide you when making important decisions and doing work. Identifying core values for yourself or within a company can provide structure and instruction, especially when dealing with certain decisions. These values can inform you about how other people interact, the focus of a person or business’ work or the individual responsibilities one will hold.
- Your Income and Taxes
- Difference between salary and hourly:
Understanding the differences between salary vs. hourly pay can help you decide whether to take accept a job offer. While there is an important distinction between the two employment classifications, there is not one that is necessarily better than the other. There are several advantages and disadvantages of hourly and salary positions that should be considered before accepting a job offer.
Salaried Employee Advantages and Disadvantages
Pros of being a salaried employee:
Fixed regular paycheck gives you a peace of mind
May offer a more flexible schedule
May allow opportunity to work less than 40 hours a week
Ability to miss work without being docked in pay
Cons of being a salaried employee:
May require you to be available during “off” hours
Usually does not pay for overtime hours
May require you to work more hours than an hourly position
Hourly Employee Advantages and Disadvantages
Pros of being an hourly employee:
Ability to earn overtime at 1.5 times your regular hourly rate
Will be paid at least the minimum wage for every hour worked
Can “work ahead” and take less vacation time
Offers flexibility for choosing work hours
Cons of being an hourly employee:
More difficult to count on an income
If you miss hours or a shift, you likely won’t be paid for that time
Can miss out on wages if hours or shifts are docked
Typically a less flexible work schedule
- Pre-Tax Income
Once you have determined if you will be a salary or hourly employee, it is time to look at the estimated salary you will be earning and if that can support the cost of living in the location of your job offer. What can seem like a lot of money in your current state of residence can be barely enough to get by in another state. Each state comes with its own unique environment, culture, climate, and tax rates. Each state has different percentages of taxes they take out your income. Your job offer will give you a starting pre-tax salary, but it is especially important to look at how much income you will have to live on after taxes are taken out. This site from MIT, https://livingwage.mit.edu/, calculates the after-tax income that you need to live in your location of choosing, along with average expenses ranging from one single adult to two adults with the option to add up to three children. This site gives you an idea of the minimum salary you need to support yourself or a family along with an idea of the cost of living.
If you have a job offer that you are considering taking and have any questions about your offer you can visit Powercat Financial, where we offer free peer-to-peer financial counseling for students transitioning from school to work. A trained counselor can review your job offer packet and answer questions regarding your finances and benefits offered as you prepare to enter the workforce.
We’d also like to invite you to come experience a “real-world” Game of Life based on day-to-day financial decisions and learn how to manage your money. Join the Hands-on Banking® experience hosted by the Powercat Financial Student Advisory Board at 7:30pm on March 23rd to learn more about budgeting, comparison shopping, and evaluating needs, wants, and trade-offs. Register at: https://forms.gle/gNCw7XFAKvXvrP1i6.
Rebecca Hernandez
Peer Counselor I
Powercat Financial
www.k-state.edu/powercatfinancial
Sources:
https://www.indeed.com/career-advice/career-development/why-mission-statement-is-important
https://www.indeed.com/career-advice/career-development/core-values
