Possible new job - advice?
I am considering a move to a new position and working out the details now. Unfortunately, the compensation package is not quite as generous as I would’ve hoped. Since so many of you have likely faced similar circumstances in your own career, I’m eager to hear your perspectives.
Current Position: Salary of $80,000, 3% contribution match to 403b ($2,400), and full coverage of both employer and employee side contributions to state pension system (the employee side, covered on my behalf by my employer, is a 7% contribution)
On the happiness scale with my current work, I’m somewhere near a 4-6/10, depending on the day. There is little flexibility, no opportunity for advancement on the horizon, and a major leadership change in the works which is sure to create a great deal of organizational change and unpredictability. On the other hand, at least in the short to mid term, the position I’m in is stable.
New Position: Salary expected to be about $90,000, no contribution to 403b, and I will need to cover $4,900 per year of the employee side contribution to the same state pension system I am currently part of. So although the $10,000 raise (12.5%) seems nice enough on the surface, these benefit differences eat away at it significantly. With the additional $4,900 I will pay into the pension system, and the loss of the $2,400 403b match, the actual increase in compensation is down to $2,700 annually. Note that all other benefits (health, time off, and others) are virtually identical between the two positions.
As you can see, the compensation is close to being a wash. Much of that $2,700 effective raise will be eaten up by taxes. My best guess based on some quick math is that my actual take home pay would only increase by about $100 a month.
Turning to the work itself, there are a few notable pros for the new position:
- an employer who I have a stronger sense of passion for
- a more casual work environment (in terms of attire, overall culture, etc)
- flexibility to work from home 2-3 days per week (BUT on the days I do work in the office, it would be a 45 mile one way commute as opposed to my current 15 mile one way commute)
- a leadership role in which I think I will enjoy the work more (I have worked for this new employer in the past many years ago and had a very positive experience - I left for graduate school)
- advance in title from a Director level position to an Executive Director level position
- perhaps most importantly, the chance to advance rapidly in the next few years - something there are very limited prospects for in my current role. Of course, there are no guarantees, but I am being recruited with the idea of advancement baked in.
Essentially, my question is how to weight all of these factors - happiness, culture, prospects for advancement - over the compensation, which may not be significantly different in spite of a $10k bump in base salary. I look forward to reading your thoughts - and as always, thank you for taking the time to weigh in!