NewStats: 3,261,308 , 8,173,651 topics. Date: Wednesday, 28 May 2025 at 07:39 PM 68123c

Common Mistakes When Accepting Offer Letters.

When considering taking an Offer, don’t always keep your focus on the Salary (direct compensation), this may be misguided when you don’t look at the other indirect compensations and benefits.

Indirect Compensation are non-monetary as they don’t come in the form of direct cash sometimes but they can make a huge difference to your budget

What other Indirect Compensations can you consider?

1. Bonus: Are there performance or sales target that you can leverage on the percentage to be paid? A monthly Sale or Quarterly bonus will boost your overall pay which may not be quantified with your annual remuneration.

2. Sign-off Bonus: Usually paid out as one-off upon accepting an offer. When contextually added, you get a higher salary pay as they are indirectly linked to your offer.

3. Loan Availment: Do they grant loan without a fee and zero or low interest rate? I when one of my sisters got a job with a lower pay but the organization grants loan to its employees at single digit rate with opportunity to pay back on a longer time period.This wasn’t available at her previous place except at a higher job grade.

4. Learning & Development:Don’t eat your future without developing yourself. If this is included as a perk and there is a budget attached to it, consider it as a catalyst for your career growth. Companies volunteer to pay certain professional exams on your behalf. It may also be in the form of tuition reimbursement.

5). Vacation pay: Do they grant leave? Do they pay leave allowance? Some companies lump this with your pay while others make it as an aside thus additional money not quantified with monthly pay.

6. Health Care Benefits: Can you with a HMO immediately upon resumption or is it after confirmation? Can the company cater for the rest of your family or is it only Self?

You don’t realize what huge funds saving this may be until you fall critically ill.

7. Life & Other Insurance: Health Insurance (HMO) isn’t only the insurance you are entitled to. Does the company offer life, disability or accident insurance during the course of work?

8. Stock or Trust-stock: Before you can access this, some companies require you work for more than 3-6 years. Others would quantify this and pay you cash as dividend while others would allow you buy stock at lower stock price.

9. Profit Sharing (P.S): This is another perk not attached to your monthly pay but trust me sometimes when you get this, it may make up for your lower gross salary. Let’s say your PS is N500,000. Divide this by 12 months and you get extra N33,333 if annualised.

I am a beneficiary of this from family & friends and some of my mentees who i have helped in reviewing their Offer Letters.

(Check the writer on social media and see that does this for a fee).

10: Pension or Retirement Funds: If you get a company paying this or even paying more than the statutory 10% on your behalf. This is a great talent retention strategy for some.

Great

Does any company in Nigeria offer stock options?

Yes, They are many in Lekki, but youhave to work up to a number of years with strict rules attached to the stock offer

Triumphant99:
Does any company in Nigeria offer stock options?

Noted

I need a Mouth Action

I really need a minibus on hire purchase to help myself.
My number on signature.

Nice one and correct information

.

Every offer comes with a mistake. Vote buying offers are worst.

Informative and helpful

You must be a fiend for wanting all of these except you are superman.

The below lin k has over 25 Interview Questions and Answers and what to know before accepting employment letter.

CBN.

Unclebright20:
I need a Mouth Action

What you need is deliverance.

1. Know the difference between basic pay and allowances. They play different roles. In most companies, each allowance (e.g. transportation) is a fix percentage of your basic pay. You will see things like: Transportation is 20% of basic pay. Leave allowance is 10% of basic pay. Housing is 25% of basic pay, etc. If your basic pay is small, other allowances will be affected.

Also, most times, basic pay is what is adjusted during salary increments. A good rule of thumb is basic = 60% of total guaranteed pay.


2. Know the difference between Guaranteed pay, non-guaranteed pay and non-cash benefits. Guaranteed pay is what comes to you monthly. That one is untouchable. Non-guaranteed pay is sometimes based on performance - don't bank on it, it it comes fine, it it doesn't fine. Non-cash benefits are other benefits like HMO, company car, official driver, employer contribution to pension, etc. This one too is important. It can ease off some financial burdens in the long run.

Nice

How are these mistakes?
It is either you accept the offer or not.
Everything is stated there for you.
If you cannot read and comprehend the of the offer. . . too bad.

Most of the points listed here apply only when dealing with a standard or multinational company and not when applying to Baba Kabiru and Sons Limited

Interesting to read. At least person no go make mistake when job finally land.

As how

Your observations is highly appreciated but there are some companies that if you are employed, you will be on probation for almost 2yrs before such employees will be confirmed to enjoy those benefit listed. However, some companies sharp practice is when such employees is about to be confirm, there will be flimsy excuses which will lead to termination.

Huh

Kobicove:
Most of the points listed here apply when only when dealing with a standard or multinational company and not when applying to Baba Kabiru and Sons Limited

Unclebright20:
I need a Mouth Action

You sure?

Rubyjade:
Yes, They are many in Lekki, but youhave to work up to a number of years with strict rules attached to the stock offer

So if a company does not offer this benefits, we should dump it and continue staying at home begging for handouts on Nairaland abi?

Ofcourse not

Josbreed:

So if a company does not offer this benefits, we should dump it and continue staying at home begging for handouts on Nairaland abi?

Not all companies in Nigeria offer these benefits. Only a few multinationals and some government agencies can give you all you've listed here.

Nice

KanwuliaExtra:
How are these mistakes?
It is either you accept the offer or not.
Everything is stated there for you.
If you cannot read and comprehend the of the offer. . . too bad.

Kobicove:
Most of the points listed here apply only when dealing with a standard or multinational company and not when applying to Baba Kabiru and Sons Limited