A job offer is not just a salary number — it is an entire financial and professional package. Evaluating it systematically ensures you say yes to the right opportunity, negotiate what matters, and don’t discover unpleasant surprises after your first day.
The job offer evaluation framework
Work through each category below before deciding:
1. Compensation
Base salary
- Is it at or above the market midpoint for your role, experience, and city?
- Check: Glassdoor, LinkedIn Salary, Robert Half Canadian Salary Guide, Job Bank (canada.ca)
- If it is below midpoint, is everything else competitive enough to compensate?
Bonus / variable pay
| Question | Why it matters |
|---|---|
| What is the target bonus percentage? | 10% bonus on $80K = $8,000; 10% on $70K = $7,000 — base matters |
| Is it discretionary or formula-based? | Discretionary bonuses are never guaranteed |
| What has the actual payout been the last 3 years? | Ask during offer stage — poor payout history reveals company health |
| When is it paid? | Quarterly vs. annually affects cash flow |
| Are there prorating rules if you start mid-year? | Common to prorate first-year bonus |
Equity / stock options
If the offer includes RSUs, options, or shares:
- When do they vest? (Standard: 4 years with 1-year cliff)
- What is their current value vs. strike price?
- Is there an acceleration clause if the company is acquired?
- For private company equity: understand this may be worth $0 if the company does not IPO or get acquired
2. Benefits
| Benefit | What to check |
|---|---|
| Extended health (prescriptions, paramedical) | Coverage % and annual maximums per category |
| Dental | Is orthodontics covered? What percentage for major dental? |
| Vision | Annual allowance for glasses/contacts |
| Life insurance | Coverage multiple (common: 1–3x annual salary) |
| Short-term disability | Percentage of salary covered, waiting period |
| Long-term disability | Percentage of salary, own-occupation vs. any-occupation definition |
| Employee Assistance Program (EAP) | Mental health support, counselling sessions |
| Waiting period | Most plans activate after 3 months; you may need to bridge from your current employer |
Dollar value of a good benefits plan: A comprehensive family benefits package replaces approximately $3,000–$8,000 in annual out-of-pocket spending. A solo plan is worth approximately $1,500–$3,000. Factor this into your comparison.
3. Retirement / pension
| Plan type | What to look for |
|---|---|
| Defined benefit pension | What is the accrual rate? (e.g., 2% per year × years of service × best 5-year average salary). Government and some large employers. Very valuable — rarely offered in private sector. |
| Group RRSP with employer match | What percentage does the employer match? What is the vesting schedule? 50% match up to 5% of salary = $4,000 on an $80K salary — do not leave this behind. |
| DPSP (Deferred Profit Sharing Plan) | Employer-only contribution. Vesting rules vary. |
| No pension / RRSP | You fund retirement entirely yourself. Factor the missing contribution into your net compensation comparison. |
4. Time off
| Element | Canadian legal minimum | Good offer |
|---|---|---|
| Vacation (0–4 years service) | 2 weeks (most provinces) | 3 weeks+ |
| Vacation (5+ years service) | 3 weeks (most provinces) | 4 weeks+ |
| Stat holidays | 9–11 depending on province | Same |
| Sick days | Province-dependent (0–3 paid days) | 5–10 paid sick + personal days |
| Parental leave top-up | No legal requirement | 80–100% pay for 10–17 weeks is common at larger employers |
Vacation week value: Each extra week of vacation is worth approximately 2% of your annual salary in time. Going from 2 to 3 weeks on an $80,000 salary adds $1,538 in time value.
5. Remote / hybrid work
| Question | Why it matters |
|---|---|
| Is the policy written into the offer letter or just informal? | Informal policies change; contractual terms protect you |
| How many days in office required? | 2 days vs. 5 days = large time and cost difference |
| Is equipment provided? | Home office stipends and equipment matter if working remotely |
| Does the company have a geographic pay policy? | Some employers pay less for remote employees outside expensive cities |
Commute cost calculation:
- 1-hour daily round trip = ~250 hours/year = ~6 weeks of work time
- 30 km daily round trip = ~7,500 km/year × $0.70/km (CRA rate 2026) = $5,250/year in vehicle costs
- Monthly transit pass: $128–$160/month in major cities = $1,536–$1,920/year
6. Role and career factors
| Factor | Questions to ask |
|---|---|
| Scope and growth | What does success look like in 12 months? What is the path to promotion? |
| Manager quality | How long has this manager been in the role? What is their leadership style? (Ask the team if possible) |
| Team stability | Why is this role open? Backfill, growth, or turnover? |
| Company financial health | Profitable? Growing? How long is the runway for startups? |
| Culture fit | What do Glassdoor reviews say? What is the turnover rate? |
The total compensation comparison worksheet
Use this to compare two offers side by side:
| Element | Offer A | Offer B |
|---|---|---|
| Base salary | $X | $X |
| Target bonus (at target %) | $X | $X |
| Benefits value (health/dental) | $X | $X |
| RRSP/pension match | $X | $X |
| Extra vacation vs. market norm | $X | $X |
| Remote work savings (commute) | $X | $X |
| Signing bonus (amortized over 2 years) | $X | $X |
| Professional development budget | $X | $X |
| Estimated total annual value | $X | $X |
The offer with the lower headline salary may win on total value.
Red flags in a job offer
- Offer is verbal with no written follow-up after several days
- Compensation is fully variable with no guaranteed base
- Signing bonus has a 2+ year clawback clause
- Benefits coverage does not begin for 6 months
- Non-compete clause is unusually broad (review with an employment lawyer)
- Role was just “redesigned” and you are the third person in it over 2 years
- Vacation must all be used in January–February