Poll

Would you take the New Job given this information

YES - New Job
4 (100%)
NO - Stay Put
0 (0%)

Total Members Voted: 4

Voting closed: August 09, 2015, 09:58:30 AM

Author Topic: SOS – potential job change  (Read 2349 times)

WannaBFree

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SOS – potential job change
« on: July 30, 2015, 08:37:50 AM »
Here is a situation. I am currently trying to decide whether to change my job. I would be moving industries. Downsides of current job: don’t see any career progress in the near term. New position will be a “step-up” in terms of role.
Current:
Salary 90,000/year +10% bonus 4% 401(k) match and a pension (yes, defined benefit pension).
New:
Salary 103,000 +15% bonus 6% 401(k) match
What would you do? I have been going back and forth with my decision. Pensions are great, but I just don’t see myself working at the current place forever. Again, don’t see much of a career progression on the horizon. I don’t know much about the new place though. I did some research, but you won’t really know how the new place turns out to be before you start working there.
I would appreciate any thought you can provide. What else should I consider? Thank you!

dandarc

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Re: SOS – potential job change
« Reply #1 on: July 30, 2015, 08:45:14 AM »
Obviously its a risk, but just on the numbers, I'd take the new job.

You might get the full details on the pension, but it is pretty rare that it will add more than about 10% to the value of your compensation package.

So salary is 15% higher, + 7% in more bonus / 401K match.  Figure even if it would take 10% of your salary to "buy" your pension, you are still up 12% on this deal.

EricL

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Re: SOS – potential job change
« Reply #2 on: July 30, 2015, 08:56:29 AM »
A good answer depends on a lot and will require more info.  Will you have to move to a new place to take the new job?  Depending on circumstances it may cost more than the bonus or take a significant bite of it. Do you like your profession or are you scrounging and investing every penny to escape?  If you like your profession, workplace happiness should be a priority.  And if you don't like your profession, how close to FI are you?  If you're close to FI and escaping ASAP is a priority, does it matter which job you take?  If not close to FI, will the first job's pension kick in for an ER?  There's no point in hanging around for it if it won't pay out.

YTProphet

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Re: SOS – potential job change
« Reply #3 on: July 30, 2015, 08:59:14 AM »
Here is a situation. I am currently trying to decide whether to change my job. I would be moving industries. Downsides of current job: don’t see any career progress in the near term. New position will be a “step-up” in terms of role.
Current:
Salary 90,000/year +10% bonus 4% 401(k) match and a pension (yes, defined benefit pension).
New:
Salary 103,000 +15% bonus 6% 401(k) match
What would you do? I have been going back and forth with my decision. Pensions are great, but I just don’t see myself working at the current place forever. Again, don’t see much of a career progression on the horizon. I don’t know much about the new place though. I did some research, but you won’t really know how the new place turns out to be before you start working there.
I would appreciate any thought you can provide. What else should I consider? Thank you!

Re: the bonus - you should ask them to guarantee it. If they don't, make sure you ask how often they've paid it out over the past 10 years and at what % of the bonus target. I had to learn that lesson the hard way.

WannaBFree

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Re: SOS – potential job change
« Reply #4 on: July 30, 2015, 09:05:16 AM »
Thank you for your comments. EricL, no, the new job is only a few blocks away from the current one, so there won't be any expenses associated with the move.
We are not close to our ER yet, but are working on getting to FI. Pension is about 5% of my yearly income, so I try not let let it be a deciding factor.
I am planning on working for the next at least 15 years.  SO work happiness would be important, but it is hard to compare. I am not particularly happy at my current place (various reasons and it was basically the reason I started interviewing in a first place). However, I cannot currently assess how happy I will be at the new place. Based on my LinkedIn research, people tend to stay at the new place for a while, so it is giving me hope...

Sibley

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Re: SOS – potential job change
« Reply #5 on: July 30, 2015, 09:27:52 AM »
You're not happy where you are. New place would be better pay and potential for advancement. You've heard good things about new place. New place's location is basically the same. I really don't see any reason to stay where you are.

WannaBFree

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Re: SOS – potential job change
« Reply #6 on: July 30, 2015, 10:56:17 AM »
Thanks Everyone,
Is there a "rule of thumb" on the %-ge of salary increase that would make it "worth it"? What do you think would be appropriate number?