1.1.3.L1
Note taking guide
What is the best job offer?
27
Name
Total Points Earned
Total Points Possible
Percentage
Date
Class
Directions: Complete the following chart from the information discussed in class. Define each term, and then in groups of 3-4 participants brainstorm
examples to complete the comparing job offers chart.
Supply –
Cost of Living –
Index Form –
Demand –
COMPARING JOB OFFERS
LOCATION AND
ENVIRONMENT
BASE SALARY
FRINGE BENEFITS
OPPORTUNITY FOR
ADVANCEMENT AND
OTHER W ORK INCENTIVES
© Family Economics & Financial Education – Revised April 2010 – Career Development – Comparing Job Offers – Page 7
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
ADDITIONAL PERKS
1.1.3.A2
Worksheet
Cost of Living Equation Practice
8
Name
Total Points Earned
Total Points Possible
Date
(2 points each)
Percentage
Class
Directions: Complete the calculations for the cost of living in the community and identify which job the
individual should accept.
For each of the following questions be sure to follow these steps:
Step 1: Assign each city numbers. One city will be assigned the number 1 and the other the number 2.
Step 2: Write the formula by providing the corresponding information for each city determined by the number
it was assigned.
Step 3: Complete the math in addition to indicating which city was a better offer and why.
The COST OF LIVING includes housing, food, transportation and other everyday expenses. Data is reported in
INDEX FORM which gives an average cost community a rating of 100.
Index city 2
E QUATION:
Salary in city 1 x
= Equivalent salary in city 2
Index city 1
1. Sara’s 2 job offers:
a. $35,000.00, Reno, NV, 105.1 cost of living index
b. $40,000.00, Anchorage, AK, 123.1 cost of living index
Step 1:
Step 2:
Step 3:
2. Joe’s 2 job offers:
a. $24,000.00, Denver, CO, 102.9 cost of living index
b. $32,000.00, Seattle, WA, 148.2 cost of living index
Step 1:
Step 2:
Step 3:
© Family Economics & Financial Education – Revised April 2010 – Career Development – Comparing Job Offers – Page 8
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
1.1.3.A2
Worksheet
3. Sara’s 2 job offers plus benefits:
a. $35,000.00, Reno, NV, 105.1 cost of living index, $4,800.00 in benefits
b. $40,000.00, Anchorage, AK, 123.1 cost of living index, $5,200.00 in benefits
Step 1:
Step 2:
Step 3:
4. Joe’s 2 job offers plus benefits:
a. $24,000.00, Denver, CO, 102.9 cost of living index, $4,500.00 in benefits
b. $32,000.00, Seattle, WA, 148.2 cost of living index, $6,000.00 in benefits
Step 1:
Step 2:
Step 3:
© Family Economics & Financial Education – Revised April 2010 – Career Development – Comparing Job Offers – Page 9
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
1.1.3.A1
Worksheet
Comparing Job Offers
22
Name
Total Points Earned
Total Points Possible
Date
(2 points per question)
Percentage
Class
Directions: Match the following terms with the statements below.
1. This includes housing, food, transportation, and other
everyday expenses
2. Additional compensation offered by a company beyond an
individual’s wage, salary, commissions, and other cash
payments
A. Base Salary
B. Fringe Benefits
C. Cost of Living
3. Dollar amount a person will receive in his/her monthly
paycheck before taxes. Based upon supply and demand
Directions: Read the following questions and fill in the blank or answer them with a short answer.
4. Give two examples of fringe benefits.
5. High supply =
Demand
6. High Demand =
Supply
7. Give two examples of employer provided services.
Directions: After reading each scenario, calculate the cost of living in the community and state which job the
individual should accept. Show all calculations. (Round to two decimal places.)
For each of the following questions be sure to follow these steps:
Step 1: Assign each city numbers. One city will be assigned the number 1 and the other the number 2.
Step 2: Write the formula by providing the corresponding information for each city determined by the number it
was assigned.
Step 3: Complete the math and indicate which city is a better offer and why.
© Family Economics & Financial Education – Revised April 2010 – Career Development – Comparing Job Offers – Page 10
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
1.1.3.A1
Worksheet
8. Janice’s 2 job offers:
a. $42,000.00, Billings, MT, $3,800.00 benefits, 95.3 cost of living index
b. $48,000.00, Cheyenne, WY, $4,000.00 benefits, 102.7 cost of living index
Step 1:
Step 2:
Step 3:
9. Brandon’s 2 job offers:
c. $43,000.00, Atlanta, GA, no benefits, 97.7 cost of living index
d. $36,000.00, Portland, OR, $4,900.00 benefits, 111.7 cost of living index
Step 1:
Step 2:
Step 3:
10. Becky’s 2 job offers:
e. $21,000.00, Minneapolis, MN, $2,400.00 benefits, 106.1 cost of living index
f. $27,500.00, Omaha, NE, $1,200.00 benefits, 89.2 cost of living index
Step 1:
Step 2:
Step 3:
11. Chad’s 2 job offers:
g. $33,000.00, San Diego, CA, no benefits, 137.8 cost of living index
h. $45,000.00, Las Vegas, NV, no benefits, 104.8 cost of living index
Step 1:
Step 2:
Step 3:
© Family Economics & Financial Education – Revised April 2010 – Career Development – Comparing Job Offers – Page 11
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
1.1.3.A3
Worksheet
Comparing Job Offers Math
29
Name
Total Points Earned
Total Points Possible
Date
(2 points per question)
Percentage
Class
Directions: Assign one city number 1, and one city number 2. It makes no difference which city gets which number,
however, this will help with confusion. Use the provided formula to practice determining which offer is best for each job
offer. Complete the formula by providing the amounts for the corresponding salaries and index amounts. Each question is
worth 1 point unless otherwise indicated. Round each answer to the nearest two decimal places.
Formula:
Offer city 1
X
Index city 2
Index city 1
=
Equivalent in city 2
Example 1:
Step 1: Assign each cities numbers
For this example Atlanta will be 1, and Minneapolis will be 2
$32,000.00 in Atlanta, GA, index of 97.7
$34,000.00 in Minneapolis, MN, index of 106.1
Step 2: Provide the corresponding salaries and index amounts
($32,000.00 (offer city 1)
X
106.1 (index city 2)
97.7 (index city 1)
=
Equivalent in Minneapolis (city 2)
Step 3: Complete the math and indicate which city is the better offer and why.
1. Using a standard calculator, perform the following equation: 106.1/97.7 =
2. Multiply the answer you found in number one by 32,000.00 =
3. Is the answer in number two more than the salary offered for city 2 (Minneapolis)?
a. If yes, there is greater spending power in city 1
b. If no, there is greater spending power in city 2
© Family Economics & Financial Education – Revised April 2010 – Career Development – Comparing Job Offers – Page 12
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
1.1.3.A3
Worksheet
Now, it’s Your Turn. Following the same steps outlined above complete the following problems:
Example 2:
$40,000.00 in Billings, MT, index of 95.3
$38,000.00 in Omaha, NE, index of 89.2
Step 1: Assign each cities numbers
4. Billings = city
5. Omaha = city
Step 2: Complete the formula by providing the corresponding salaries and index amounts
(offer city 1)
6.
7.
8.
X
(index city 2)
(index city 1)
=
(equivalent in city 2)
Step 3: Complete the math and indicate which city is a better offer and why.
 Using a standard calculator, perform the following equation: 9.
(index city 2)/10.
a) 11.
_is the correct answer for the above division problem.
 Complete the second step of math. 12.
(answer recorded at number 11) X 13.


14.
(index city 1)
(offer city 1)
(equivalent salary in city 2)
Complete the following question:
15. What city is the better offer? Why? (2 points)
Example 3:
$39,000.00 in San Diego, CA, index of 137.8
$33,500.00 in Portland, OR, index of 111.7
Step 1: Assign each cities numbers
16. San Diego = city
17. Portland = city
Step 2: Complete the formula by providing the corresponding salaries and index amounts
18.
(offer city 1)
X
19.
20.
(index city 2)
(index city 1)
=
(equivalent in city 2)
Step 3: Complete the math, and indicate which city is a better offer and why.
 Using a standard calculator, perform the following equation: 21.
(index city 2)/22.
b) 23.
_is the correct answer for the above division problem.
 Complete the second step of math. 24.
(answer recorded at number 23) X 25.
 26.
(equivalent in city 2)
 Complete the following question:
27. What city is the better offer? Why? (2 points)
© Family Economics & Financial Education – Revised April 2010 – Career De velopment – Comparing Job Offers – Page 13
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
(index city 1)
(offer city 1)
1.1.3.B1
Rubric
Comparing Job Offers Essay Rubric
Name:
Date:
Directions:
1. Participants must write a 1 page, double-spaced, 12-font with 1-inch margins essay answering the
question, what components of a job offer are most important to them and provide reasons to support
their ideas.
2. Identify a minimum of two important aspects of a job offer and a minimum of two reasons to support
their decision.
3. Identify a minimum of two aspects that they feel are less important and a minimum of two reasons to
support their decision.
4. Grading will be based upon the following rubric.
Exemplary - 3
Satisfactory - 2
Unsatisfactory - 1
Rating
Weight Score
3
9
Content
Essay identifies a
minimum of two
important aspects of a
job offer.
Essay identifies one
important aspect of a
job offer.
Essay identifies no
important.
Content
Essay identifies a
minimum of two less
important aspects of a
job offer.
Essay identifies one
less important aspect
of a job offer.
Essay identifies no
less important aspects
of a job offer.
3
9
Content
Essay includes a
minimum of four
reasons for their
choices.
Essay includes only
two reasons for their
choices
Essay includes no
reasons for their
choices.
3
9
Writing Skills
Sentences are fluent
and effective with very
few errors in
mechanics,
punctuation, and word
usage.
Sentences are usually
controlled. There are
minor errors in
mechanics,
punctuation, and word
usage.
Sentences are
generally adequate.
There are lapses in
mechanics,
punctuation, and
grammar.
2
6
Completion
Assignment is easily
read and neatly
assembled with an
introduction, body,
and conclusion.
Assignment is
adequate. Answers
may be missing,
incomplete, or too
brief.
Assignment is
incomplete. Answers
show lack of
attention to detail.
2
6
Total Points Earned
Total Points Available
Percentage
© Family Economics & Financial Education – Revised April 2010 – Career Development – Comparing Job Offers – Page 14
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
39
1.1.3.F1
Family Economics & Financial Education
Comparing
Job Offers
Cost of Living Index of City 2
= Equivalent Salary in city 2
Salary in city 1 x
Cost of Living Index of City 1
Supply and Demand
Salary and Fringe Benefits
Employment is usually considered the most important
factor affecting an individual’s financial situation. One
of the main reasons people work is to earn money.
Salaries can vary drastically between careers as a result
of the laws of supply and demand.
• Supply is the relationship of prices to the quantities
of a good or service sellers are willing to offer for sale
at any given point in time.
• Demand is the relationship between prices and the
corresponding quantities of a good or service buyers
are willing to purchase at any given point in time.
For example, an individual with a degree in
engineering is likely to earn more than an individual
with a teaching degree because educators are in
greater supply.
After a person acquires an education, they are ready to
enter the workforce. At this stage, it is necessary for an
individual to have the ability to objectively evaluate job
offers. There are many factors which affect a person’s
salary. Base salary is the dollar amount a person will
receive in his/her monthly paycheck before taxes.
Companies often provide employees with fringe benefits.
Fringe benefits are additional compensation offered by a
company beyond an individual’s wage, salary,
commissions, or other cash payments. Fringe benefits can
include paid sick time, holidays and vacations, bonuses,
health insurance, life insurance, workman’s
compensation, and retirement contributions. The
benefits can dramatically increase the dollar amount
received from a company. For example, health insurance
is very expensive for a family. If a company has a health
insurance policy which covers the entire family and pays
100% of expenses, it can save the family hundreds of
dollars per month.
Cost of Living Equation
Two additional factors to consider when evaluating a
job offer is location and environment. Is the job in a
good community? Does it require time and resources
to travel long distances to get to work? Is there a low
crime rate, good schools, and a good climate? What is
the cost of living in the community? Cost of living
includes housing, food, transportation, and other
everyday expenses. The cost of living varies
dramatically between communities. It is often lower in
rural communities than large urban metropolitan
areas. This drastically affects the spending power of
each dollar a person earns.
Data on the cost of living for different communities is
reported by the American Chamber of Commerce
Researchers Association (www.accra.org). Data is
reported in index form. Index form gives an average
cost community a rating of 100.0. A lower index
indicates a lower cost of living which is better. For
example, if Happyville had an index of 100.0 and
Greenville had an index of 126.0 the same item would
cost $1.00 in Happyville and $1.26 in Greenville.
Incentives
When comparing job offers, an individual must also
evaluate a company’s opportunity for advancement and
work incentives. Some companies provide guaranteed
pay raises based upon work performance and longevity
with the company. An individual must also realize when
starting most jobs, they are at the bottom of the pay scale
and a goal should be to advance within the company.
Therefore, a person needs to determine the advancement
opportunities and requirements. Is the company rapidly
growing? Does the company fill openings by promoting
current employees or hiring from outside the company?
In addition, example of work incentives can include gym
memberships, flexible hours, merchandise discounts, and
child-care. Some companies also offer relocation
allowances, a company car, repayment of education loans
or expenses, and stock options.
©Family Economics & Financial Education—May 2008—Career Development Unit—Comparing Job Offers—Page 1
Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The
University of Arizona