Job offer decision tree template

A new offer versus the job you have. The offer pays more today and carries equity that may or may not be worth anything; staying carries a promotion chance and less risk.

Best optionAccept the offerExpected value 1,810,000 · 210,000 ahead of Stay in current role

The tree

Accept the new job offer?25%55%20%40%60%Accept the new joboffer?EV 1,810,000→ Accept the offerAccept the offerEV 1,810,000Company grows, equity p…2,400,000Company steady1,800,000Company struggles, laid o…1,100,000Stay in current roleEV 1,600,000Promoted next year1,750,000Not promoted1,500,000

The decision in plain words

The options

Accept the offer, or stay in the current role. Each has two or three ways the next three years could go.

The uncertainties

At the new company: growth with an equity payout, steady, or struggling with a layoff. In the current role: promoted next year or not.

The numbers

Three-year total compensation including equity at its expected value. Money is not the whole decision, so put a number on what the job means to you and add it to the payoffs; the tree handles it the same way.

The result

Accept the offer, with an expected value of 1,810,000, 210,000 ahead of Stay in current role.

Where it flips. If the payoff for company steady (Accept the offer) falls below 1,418,182 (it is 1,800,000 now), Stay in current role wins instead.

Chance of a loss
0%
Best case
2,400,000
Worst case
1,100,000

Change these numbers first

  • The payoff for company steady (Accept the offer): the answer flips at 1,418,182 (now 1,800,000).
  • The payoff for not promoted (Stay in current role): the answer flips at 1,850,000 (now 1,500,000).
  • The payoff for promoted next year (Stay in current role): the answer flips at 2,275,000 (now 1,750,000).

The closer a switch point is to your estimate, the more that estimate deserves a second look.

The tree as text

# Analytical, 3-year total compensation
Accept the new job offer?
  Accept the offer
    Company grows, equity pays out (p 0.25): 2400000
    Company steady (p 0.55): 1800000
    Company struggles, laid off in year 2 (p 0.2): 1100000
  Stay in current role
    Promoted next year (p 0.4): 1750000
    Not promoted (p 0.6): 1500000

Related templates

Go deeper

Make this decision your own.

Open the template, change the options and numbers, and the best option updates as you type.