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What to Look for in An Offer Letter

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After applying GetFive’s proven method and strategic approach to decision making and job searching you’ve finally received thing you’ve been working towards – an offer letter from a great company. But before you rush into the job, it’s critical that you carefully review what they’ve given you.

While it’s not an official employment contract, an offer letter does contain crucial clues on what the benefits and terms of your employment will look like – and it can also provide legal evidence if you ever run into problems with your employer down the road.

Here are 3 key things to look for in your offer letter:

  1. Information & Responsibilities

Naturally, your letter will have info on the basic details of your job – but read it carefully. Is it clear who you’re reporting to, what’s expected of you, and how the company will measure success? Before accepting the position, you want to have a clear understanding of your responsibilities and expectations.

  1. Compensation

In addition to basic salary structure, pay attention to any bonuses and how they’re paid out. These may be guaranteed bonuses, discretionary bonuses, or deferred compensation like stock options.

  1. Mandatory Arbitration, Non-Competes, and Non-Solicits

These are three clauses that employers often slip in that you’ll want to watch out for. A mandatory arbitration clause forces you to agree to a truncated, privately-resolved dispute resolution process instead of a jury, which hinders your ability to gather evidence. Non-compete clauses prohibit you from competing with the company after employment ends, but they should always be limited by geography and time. Non-solicits prohibit you from asking other employees to leave the company to work with you – but again, they should be limited by time.

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