You have two job offers on the table
Offer A: ₹18 LPA from a well-known MNC. Offer B: ₹16 LPA from a growing startup. Most people would pick Offer A immediately. Higher CTC = better offer, right? Wrong. Six months later, you realize: Your actual in-hand is ₹95,000 (Offer A) vs ₹1,10,000 (Offer B would have been). You're stuck in 9-7 rigidity vs flexi hours at the startup. Your stock options at the startup would be worth ₹15 lakhs by now. You're learning outdated tech vs cutting-edge skills. You chose wrong. And it's costing you. This guide shows you exactly how to evaluate job offers holistically—because the highest CTC is rarely the best offer.
Key Takeaways
- CTC is marketing, in-hand is reality: Always calculate actual monthly in-hand
- Variable pay is risky: Assume 50-70% payout unless proven otherwise
- Total comp formula: Fixed + (Variable × 60%) + (ESOP EV × 15%) + Benefits - (Commute + Stress cost)
- Use scorecard framework: Compensation 40%, Growth 25%, Work-life 20%, Security 10%, Culture 5%
- Take 48 hours minimum: Never accept on the spot. Red flags trump everything.
Why CTC Alone is Misleading
- Variable Pay Trap: ₹15L = ₹10L fixed + ₹5L variable. Reality: 40% payout → ₹12L effective
- Reimbursement Inflation: ₹12L = ₹9L salary + ₹3L reimbursements. Reality: Claim ₹1.5L → ₹10.5L effective
- Notice Period Buyback: ₹14L includes ₹2L buyback waiver. Real value ₹12L (useful only if resign without notice)
- Joining Bonus: ₹16L with ₹3L one-time. From Year 2: only ₹13L
In-Hand Reality Check
📊 Offer A vs Offer B
Complete Offer Comparison Framework
- Compensation (40%): Fixed vs variable split, actual in-hand, ESOPs (10-20% exit probability), bonuses, benefits (health, meals, cab, gym, learning). Total value: Effective salary + ESOP EV + benefits.
- Career Growth (25%): Learning opportunities (1-10: cutting-edge vs legacy), role impact, promotion timeline, company growth, brand value. Better role at lower pay can pay more in 3 years.
- Work-Life (20%): Working hours, WFH policy, commute time (2hr daily = ₹1.6L/year value), leave policy, stress level. Research Glassdoor.
- Job Security (10%): Financial health, role criticality, industry outlook. Startup runway, layoffs, funding.
- Culture (5%): Team quality, company culture, office environment.
The Scorecard
Score each offer 1-10 on: Compensation (fixed split, in-hand, ESOPs, benefits), Career Growth (learning, role, promotion, company, brand), Work-Life (hours, commute, leave, stress), Security (financials, role, industry), Culture (team, company). Weights: 40%, 25%, 20%, 10%, 5%. Example: Offer A (MNC) 5.95 total vs Offer B (Startup) 8.45 total. Winner: Offer B despite lower CTC.
Red Flags Checklist
- Vague salary breakup: Won't share details, 'we'll discuss after joining'. Demand clarity.
- Unrealistic variable: 30% of CTC variable, no historical payout. Assume 50%, recalculate.
- Long notice period: 90 days when industry is 30-60. Factor buyout cost.
- No WFH: 100% office post-COVID. Inflexible = work-life suffers.
- Negative Glassdoor: <3.0 rating, consistent complaints. Talk to employees first.
- Declining business: Revenue down, layoffs, hiring freeze. Risk of layoff in 6-12 months.
- Pressure to accept: 'Offer expires in 24 hours'. Good companies give 5-7 days.
- ESOPs with no exit plan: Unlisted startup, no path to IPO. Value might be ₹0.
Questions to Ask
- Compensation: Exact breakup? Variable payout history? First increment timing? Benefits included? ESOP vesting & exit outlook?
- Role & Growth: Typical promotion time? Skills I'll learn? Can I speak with manager? Team size? Success criteria at 6 months, 1 year?
- Work-Life: Working hours & WFH? Weekend work? Leave policy?
- Company: Financial situation & growth? Layoffs in past year? Attrition rate?
Special Scenarios
- High CTC Corporate vs Lower Startup + ESOPs: <20% exit chance → Corporate. Age 25-30, can afford risk → Startup. 35+ with family → Corporate.
- Better Pay vs Better Brand: Early career (0-5 yrs) → Brand (FAANG at ₹15L > unknown at ₹18L). Mid-career → Money.
- Work-Life vs Money: ₹20L rigid high-stress vs ₹16L flexible. Factor: 2hr commute = 500 hrs/year, stress health cost ₹50K-1L. Choose life if you value health, family, side projects.
- Pay Now vs Growth Later: ₹18L Senior Analyst slow growth vs ₹14L Team Lead fast track. By Year 4, Team Lead path wins. Choose growth if under 35.
48-Hour Evaluation Process
- Day 1: Analyze compensation (2hrs), Research company—Glassdoor, LinkedIn, Crunchbase (2hrs), Evaluate growth (2hrs), Assess work-life (2hrs)
- Day 2: Talk to 3-5 current employees on LinkedIn (2hrs), Fill scorecard, calculate weighted scores, factor gut feeling 20%, make choice (2hrs)
- Never accept on the spot. Take 48 hours minimum.
Negotiation After Comparison
If Offer B is better but Offer A pays more: 'I have another offer at ₹X. I prefer your company because [reasons], but the gap is significant. Can you match ₹Y (Offer A - 10%)?' If they can't match: Ask for faster first increment (6 months), signing bonus, better stock options, learning budget.
Final Checklist
- Calculated actual monthly in-hand (not just CTC)
- Researched Glassdoor (20+ reviews), talked to 3+ current employees
- Understood variable payout history, ESOP realistic value
- Assessed learning, promotion timelines, work hours, WFH, commute cost
- Compared using scorecard, negotiated if possible
- Read offer letter completely. Only accept after ALL boxes checked.
Final Thoughts
The highest CTC is seductive. But six months later when you're working 12-hour days, 3-hour commute, learning nothing, stressed, getting ₹85K vs ₹1.1L the other offer would have given—you optimized for bragging rights, not life. The best offer maximizes total wealth (money + skills + health + happiness) over 3-5 years. Take 48 hours. Use the framework. Your future self will thank you.
Need Help?
Need help comparing offers? Use our Job Offer Analyzer to evaluate multiple offers side-by-side with our comprehensive framework. Or calculate true in-hand salary with our In-Hand Salary Calculator.
Disclaimer
Offer evaluation should consider individual circumstances, career goals, and personal priorities. The frameworks provided are for guidance only. Actual outcomes depend on company performance, individual performance, and market conditions.