Author Topic: Which job - need decision today!  (Read 942 times)

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Which job - need decision today!
« on: January 13, 2021, 10:13:14 AM »
Hi!

Need help deciding on job:

Wife makes $74,000
I make $90,000 (today)

Offer on the table for $80/hour for 1 year contract ("with likely extension") which comes to $153,600 when i take out 2 weeks unpaid time off and 2 weeks holiday in next 12 months (1920 hours). This is a fully-remote contract

I put my notice in at work, and they offered me $116,000 to stay. I told them i needed $127,725, but they are not budging past $116,000.

My current job I am super well-respected within the organization. I'm #1 asked for when it comes to assignments by business leaders, i am valued. My workplace is a 12 minute drive (12 mile bike commute, during non winter months). We have been WFH full time since March. It's unclear what the expectation is after covid, but likely will be hybrid. Regardless, the workplace is very flexible. For instance, I just biked to the library to pickup a book 10 minutes ago. No one missed me while I was gone. I've been in jobs where that wouldn't fly.

I did the math, and after accounting for health plan differences and maxing out 401ks, (wife's plan is much more expensive than my current company), our take home pay would be $10,800 a month if I take contract job and $8,800 if i stay. My manager needs an answer today.

Is the added risk of a contract worth $2,000 a month? I'm leaning towards yes it's better, but not sure.

Any super quick help here would be appreciated. Thank you!

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 2005
  • Age: 35
  • Location: Bellingham, WA
Re: Which job - need decision today!
« Reply #1 on: January 13, 2021, 10:21:46 AM »
How much did you make at your current job before they proposed $116K for you to stay?  Was that a pretty substantial increase?  Do you think that now that you have threatened to leave that this will affect how you are viewed or treated at your current job?

In my opinion if you started the process of leaving, you kind of have to...  Things will probably be weird if you stay.  If your wife's job is stable that helps reduce the risk.  Really tough decision though!

Edit: NM... I guess I have reading comprehension issues.  I see now it was $90K.
« Last Edit: January 13, 2021, 10:25:04 AM by v8rx7guy »

Linea_Norway

  • Walrus Stache
  • *******
  • Posts: 7170
  • Location: Norway
Re: Which job - need decision today!
« Reply #2 on: January 13, 2021, 10:22:44 AM »
That is a substantial amount of money each month. How are the chances of landing another good job in case your contract would not be extended afterwards?
On the other hand, it sounds like you have a good and flexible job. Do you thrive there? Is the work still interesting? Or did you apply to another job because you wanted a new challenge?

I would say that if you are up to a new challenge in your life, then do it. If only for the money, not sure. The grass is not always greener in another job.

mozar

  • Magnum Stache
  • ******
  • Posts: 3374
Re: Which job - need decision today!
« Reply #3 on: January 13, 2021, 10:23:41 AM »
I'm leaning towards leaving for the new job. Even if the job only lasts a year you'll be setting your salary higher for whatever job that comes after.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #4 on: January 13, 2021, 10:30:29 AM »
How much did you make at your current job before they proposed $116K for you to stay?  Was that a pretty substantial increase?  Do you think that now that you have threatened to leave that this will affect how you are viewed or treated at your current job?

In my opinion if you started the process of leaving, you kind of have to...  Things will probably be weird if you stay.  If your wife's job is stable that helps reduce the risk.  Really tough decision though!

Edit: NM... I guess I have reading comprehension issues.  I see now it was $90K.

It was substantial. Some more backstory, is that i was supposed to get promoted in 2020, but covid put our company on hiring freeze, but it just got approved earlier this week according to my manager (how convenient timing though...) for $110,000, so they bumped the $110,000 offer that i was supposedly going to get already to $115,000. The only people who know are my manager (who is generally very supportive and clearly wants me to stay, but also said she wants me to be happy). She also said that i would be the obvious candidate for her job once she moves up in the organization. So, i don't think my perception in the company will change much due to this. She said she could tell i was getting frustrated at the end of 2020 with my pay (further backstory is that i took a paycut to get to my current job, and then due to covid, they gave the entire company a 5% paycut for 6 months).

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #5 on: January 13, 2021, 10:33:50 AM »
That is a substantial amount of money each month. How are the chances of landing another good job in case your contract would not be extended afterwards?
On the other hand, it sounds like you have a good and flexible job. Do you thrive there? Is the work still interesting? Or did you apply to another job because you wanted a new challenge?

I would say that if you are up to a new challenge in your life, then do it. If only for the money, not sure. The grass is not always greener in another job.

I am doing really well in my job. People really like me. The company has grown quickly over the past 10 years, and i have implemented a lot of good processes that has helped the company operate much more smoothly.

Why did i start looking?
I reached out to a few recruiters to test the market because i knew that i was being "under" paid - or that someone out there would pay substantially more for me than my current employer is. I landed this opportunity in less than 1 month from turning the button "open to opportunities" on Linkedin on. I didn't apply to a single job - just let recruiters place me. I still have some hot leads for other opportunities out there right now too that I should probably shut down or be transparent with.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #6 on: January 13, 2021, 10:37:43 AM »
I'm leaning towards leaving for the new job. Even if the job only lasts a year you'll be setting your salary higher for whatever job that comes after.

That's true. I just don't want to sit on the bench for 6 months to wait for that, you know?

Paper Chaser

  • Bristles
  • ***
  • Posts: 462
Re: Which job - need decision today!
« Reply #7 on: January 13, 2021, 10:40:18 AM »
I'd stick it out at the current place. You were pretty happy there before they offerd you a significant raise. You're valued there. There's a clear path to promotions and higher salary. None of those are guaranteed with the contract job, and it sounds like you'd probably be looking for another new job a year from now, and facing the same uncertainty again.

If the contract were going to be enough to put you over the FI line or something, then it's a no brainer but I fall back on "Bird in the hand" kind of thinking with this.

bacchi

  • Walrus Stache
  • *******
  • Posts: 5313
Re: Which job - need decision today!
« Reply #8 on: January 13, 2021, 10:49:50 AM »
If your current company really cared about your contributions well being, you wouldn't be so underpaid. They gave you a 29% bump in pay in one go! They were underpaying you and they knew it.

That's how most businesses operate, of course, but what makes you think that they'll do better from now on?

SunnyDays

  • Handlebar Stache
  • *****
  • Posts: 1488
Re: Which job - need decision today!
« Reply #9 on: January 13, 2021, 11:01:32 AM »
What about health insurance, if you're American?  Does the contract job offer that, or are you covered by your wife's anyway?

Which is more important to you - comfort and security or money?

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #10 on: January 13, 2021, 12:05:29 PM »
I'd stick it out at the current place. You were pretty happy there before they offerd you a significant raise. You're valued there. There's a clear path to promotions and higher salary. None of those are guaranteed with the contract job, and it sounds like you'd probably be looking for another new job a year from now, and facing the same uncertainty again.

If the contract were going to be enough to put you over the FI line or something, then it's a no brainer but I fall back on "Bird in the hand" kind of thinking with this.

Not going to push me over the line by any means, but should help me get there faster. $24k in extra take home pay will compound to be about 1 year's worth of expenses in 10 years when i FIRE in 2030 (god willing), so i could say it will get me to my FIRE date a year faster? I don't think that math really checks out, but 24 should turn into $50k in ten years when invested, and that's ~targeted FIRE spending, so sorta....

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #11 on: January 13, 2021, 12:07:19 PM »
If your current company really cared about your contributions well being, you wouldn't be so underpaid. They gave you a 29% bump in pay in one go! They were underpaying you and they knew it.

That's how most businesses operate, of course, but what makes you think that they'll do better from now on?

Shit, i knew it too. When they gave us a salary decrease due to covid, but still were making money, i knew they were full of BS. You can't take your employees salaries, tell them, "we're giving you a paycut of X% because of covid" and then still turn a profit.

I'm not convinced they will do better, but it's the devil i know, i guess.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #12 on: January 13, 2021, 12:09:36 PM »
What about health insurance, if you're American?  Does the contract job offer that, or are you covered by your wife's anyway?

Which is more important to you - comfort and security or money?

Regarding health insurance, with my current position, we get it for about $4000 a year (plus $1500 of HSA money to use - or save). With my wife's company, it will be about $6800, but a better plan. So, yeah, it will cost us about $3-4k more a year, but it's not like i'm going out into the marketplace and paying for a 15-20k plan.

Regarding what is more important, i guess i say, "FIRE." I am trying to USE money to BUY comfort and security. So, i guess right now i should be valuing the money, not the other two until I FIRE.

Rdy2Fire

  • Bristles
  • ***
  • Posts: 251
Re: Which job - need decision today!
« Reply #13 on: January 13, 2021, 12:12:15 PM »
At one point in my career I left to go the consulting route. Personally I liked it better, felt I had more freedom and made a significant amount more.

With that said, consulting works for those who are ok with the idea of instability even though a full time job isnt really NO MORE stable these days. I'd take more money, as it's be pointed out, you were obviously under paid, although your valued they weren't paying you your value and now you probably are being perceived and a non team player, or someone willing to jump ship SO.. if they decide to let people go, there is a good possibility that you will be on the top of the list since now you're also probably the highest paid.

Of course if you REALLY want to be greedy you could go back to the consulting gig, tell them your company made you a counter offer and see if they will sweeten the pot a little to $85 an hour

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #14 on: January 13, 2021, 12:18:49 PM »
At one point in my career I left to go the consulting route. Personally I liked it better, felt I had more freedom and made a significant amount more.

With that said, consulting works for those who are ok with the idea of instability even though a full time job isnt really NO MORE stable these days. I'd take more money, as it's be pointed out, you were obviously under paid, although your valued they weren't paying you your value and now you probably are being perceived and a non team player, or someone willing to jump ship SO.. if they decide to let people go, there is a good possibility that you will be on the top of the list since now you're also probably the highest paid.

Of course if you REALLY want to be greedy you could go back to the consulting gig, tell them your company made you a counter offer and see if they will sweeten the pot a little to $85 an hour

Ha, thought about this, but i'm not sure if i want to shake that tree too much. I feel like $80 is a pretty competitive rate right now for a fully remote W2 position for my role, so i don't want to get too greedy only to have it bite me.

thesis

  • Bristles
  • ***
  • Posts: 296
Re: Which job - need decision today!
« Reply #15 on: January 13, 2021, 12:57:00 PM »
You're this far in and still aren't sure?

If you were open to leaving in the first place, your reasons for leaving aren't likely to change. I guess your current employer countered with a pay raise, but still, if you were looking to leave, take the leap and don't look back. There are always other good companies out there, too.

That being said, I'm not very ambitious myself. Only very rarely do I take the non-lazy route. YMMV. We can only offer perspective.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #16 on: January 13, 2021, 01:05:01 PM »
You're this far in and still aren't sure?

If you were open to leaving in the first place, your reasons for leaving aren't likely to change. I guess your current employer countered with a pay raise, but still, if you were looking to leave, take the leap and don't look back. There are always other good companies out there, too.

That being said, I'm not very ambitious myself. Only very rarely do I take the non-lazy route. YMMV. We can only offer perspective.

I mean, i guess there's nuance (or i feel that there is nuance) that i'm not articulating here well. For example, my current company is considered a "cool" place to work. I'm going to a company that i will not a part of any type of culture and I'll be full-time WFH with no offices within a 3 state radius from me, so there is no culture or work/friend relationships that will happen organically. It's stuff along those lines that gives me pause and maybe a tinge of regret.

However, totally was underpaid. This much is now well-understood and was the only reason i started looking.

reeshau

  • Pencil Stache
  • ****
  • Posts: 995
  • Location: Houston, TX
Re: Which job - need decision today!
« Reply #17 on: January 13, 2021, 01:56:02 PM »
I landed this opportunity in less than 1 month from turning the button "open to opportunities" on Linkedin on. I didn't apply to a single job - just let recruiters place me. I still have some hot leads for other opportunities out there right now too that I should probably shut down or be transparent with.

You found a position that quickly, for that much more money?  And your wife has your health care covered?  Go for the cash option!

If you are managing to leave the old job on such good terms, that could always be a backup plan.  That would mean your worst case in the future is your CURRENT CASE.

One question:  is the new job a promotion / increase in scope & responsibility, or comparable to your current job?  You mentioned that your boss thought you would fit her role--is that the fair comparison, or what you do today?  (I'm trying to sort out underpaid vs. not promoted)

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #18 on: January 13, 2021, 02:10:40 PM »
I landed this opportunity in less than 1 month from turning the button "open to opportunities" on Linkedin on. I didn't apply to a single job - just let recruiters place me. I still have some hot leads for other opportunities out there right now too that I should probably shut down or be transparent with.

You found a position that quickly, for that much more money?  And your wife has your health care covered?  Go for the cash option!

If you are managing to leave the old job on such good terms, that could always be a backup plan.  That would mean your worst case in the future is your CURRENT CASE.

One question:  is the new job a promotion / increase in scope & responsibility, or comparable to your current job?  You mentioned that your boss thought you would fit her role--is that the fair comparison, or what you do today?  (I'm trying to sort out underpaid vs. not promoted)

Thanks for the response.

Is the new role a promotion or increase in responsibility? I would say it is equal (or even possibly less, to be honest). My boss telling me that i could/would be promoted to her role someday would be a promotion, but not what my new role is. My new role is lateral or even a little under lateral.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #19 on: January 13, 2021, 02:11:46 PM »
I know everyone on here is waiting with bated breath, but i decided to jump and do the contracting. It was too much $$ to turn down. If my current company would have given me what i asked for in terms of salary, i would have been more pressured to stay, but they couldn't.

mozar

  • Magnum Stache
  • ******
  • Posts: 3374
Re: Which job - need decision today!
« Reply #20 on: January 13, 2021, 02:26:50 PM »
Congrats!

v8rx7guy

  • Handlebar Stache
  • *****
  • Posts: 2005
  • Age: 35
  • Location: Bellingham, WA
Re: Which job - need decision today!
« Reply #21 on: January 13, 2021, 02:33:32 PM »
Best of luck in your new career!

socaso

  • Pencil Stache
  • ****
  • Posts: 663
Re: Which job - need decision today!
« Reply #22 on: January 13, 2021, 02:38:18 PM »
Congrats on the new job! Also, considering your manager doesn't want to lose you it would be worthwhile to tell her you've loved working there and would consider working there again if they can meet your price. I've seen people bounce in and out of the same company for more money. You could be one of them.

iluvzbeach

  • Bristles
  • ***
  • Posts: 422
Re: Which job - need decision today!
« Reply #23 on: January 13, 2021, 03:06:53 PM »
I was going to suggest you stay, simply because you sound happy where you are and the culture stuff you mentioned sounded pretty important to you. I think in the end, the money difference will not be quite as significant as it initially seems after factoring in health insurance costs and the opportunity for advancement. As previously mentioned, make sure to leave in good standing as you never know how youíll feel at the new gig after just a few months. Keep us posted.

trollwithamustache

  • Pencil Stache
  • ****
  • Posts: 855
Re: Which job - need decision today!
« Reply #24 on: January 13, 2021, 03:12:29 PM »
Counteroffers almost never make sense. Even if you stay, there will be resentment that you are only in it for the money.

Plus, on this contract job, you don't say it, was it 1099? with deductions, you will probably make even more delta.

bbqbonelesswing

  • Bristles
  • ***
  • Posts: 278
  • Age: 28
  • Location: Philly
Re: Which job - need decision today!
« Reply #25 on: January 13, 2021, 03:17:13 PM »
I know everyone on here is waiting with bated breath, but i decided to jump and do the contracting. It was too much $$ to turn down. If my current company would have given me what i asked for in terms of salary, i would have been more pressured to stay, but they couldn't.

Congratulations! It sounds like you made the right choice. Your previous company didn't even come close with the counter offer. Best of luck to you in the new job.

SunnyDays

  • Handlebar Stache
  • *****
  • Posts: 1488
Re: Which job - need decision today!
« Reply #26 on: January 13, 2021, 04:18:33 PM »
Congrats!  Just be careful not to let lifestyle inflation happen, or itís all for nothing!

reeshau

  • Pencil Stache
  • ****
  • Posts: 995
  • Location: Houston, TX
Re: Which job - need decision today!
« Reply #27 on: January 13, 2021, 06:10:54 PM »
You should celebrate by recalculating your FI date.  How many years die you just buy?

Rdy2Fire

  • Bristles
  • ***
  • Posts: 251
Re: Which job - need decision today!
« Reply #28 on: January 13, 2021, 06:26:46 PM »
Congrats!!

terran

  • Magnum Stache
  • ******
  • Posts: 3253
Re: Which job - need decision today!
« Reply #29 on: January 13, 2021, 11:37:27 PM »
Make sure you read up on solo 401(k)s and self employed tax deductions. Also take a look at Schedule C and Schedule SE.

Linea_Norway

  • Walrus Stache
  • *******
  • Posts: 7170
  • Location: Norway
Re: Which job - need decision today!
« Reply #30 on: January 14, 2021, 02:50:32 AM »
Good luck with your new job. Let your current employer know you would like to come back when you can take over your boss' position.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #31 on: January 14, 2021, 08:27:33 AM »
Make sure you read up on solo 401(k)s and self employed tax deductions. Also take a look at Schedule C and Schedule SE.

Hi Terran! Thanks for this! This is W2 contracting though, so i don't have access to anything special that i would as a 1099 contractor, unfortunately. I think my plan is to try to land 1099 / corp-to-corp ops in the future, but for now, I'm just at W2.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #32 on: January 14, 2021, 08:37:54 AM »
Congrats!

Best of luck in your new career!

Congratulations! It sounds like you made the right choice. Your previous company didn't even come close with the counter offer. Best of luck to you in the new job.

Thank you all!

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #33 on: January 14, 2021, 08:40:18 AM »
You should celebrate by recalculating your FI date.  How many years die you just buy?

Ha! Good idea. And frankly, i have no idea how to really calculate this. If i could expect 80/hour for the next 10 years, then it'd be easy, but with contracting, there will be times of no work, etc, so i'm finding a hard time calculating my new savings rate.

I THINK that this 1 year will shave off 1 year if it all goes to saving (which it will or maybe some improvement projects), but i am scratching my head trying to figure out how it will factor in the future.

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #34 on: January 14, 2021, 08:41:38 AM »
Good luck with your new job. Let your current employer know you would like to come back when you can take over your boss' position.

That's a really good idea. I will talk to them about it!

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #35 on: January 14, 2021, 08:42:11 AM »
Congrats on the new job! Also, considering your manager doesn't want to lose you it would be worthwhile to tell her you've loved working there and would consider working there again if they can meet your price. I've seen people bounce in and out of the same company for more money. You could be one of them.

Good idea. I will talk to her about it. You never know!

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #36 on: January 14, 2021, 08:43:30 AM »
Counteroffers almost never make sense. Even if you stay, there will be resentment that you are only in it for the money.

Plus, on this contract job, you don't say it, was it 1099? with deductions, you will probably make even more delta.

Hi! It's W2 - sorry for missing that fact. So i will save on the employer payroll taxes, but yeah, i won't be able to shelter $55k into a solo 401k or anything exciting like that. The plan is to get there in the next few years, hopefully!

Mgmny

  • Pencil Stache
  • ****
  • Posts: 837
  • Age: 30
  • Location: East Side of MSP
Re: Which job - need decision today!
« Reply #37 on: January 14, 2021, 08:46:39 AM »
Congrats!  Just be careful not to let lifestyle inflation happen, or itís all for nothing!

For sure! I joked with my wife that now i will buy a tesla, but i was just kidding. I am happy with my 2010 honda fit, and plus, now that i'm WFH fully for the next year, i don't even really need a car!

thesis

  • Bristles
  • ***
  • Posts: 296
Re: Which job - need decision today!
« Reply #38 on: January 14, 2021, 10:46:34 AM »
Awesome, let us know how it goes :)