Author Topic: Job Offer Contemplation  (Read 3559 times)

Insanity

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Job Offer Contemplation
« on: June 06, 2015, 06:36:25 AM »
I'm expecting to get a job offer over the next week.  The salary is unknown at this time, but I do know some benefits (3 weeks vacation, an okay medical coverage, a 10% bonus which I was basically told is paid out as long as you keep your job).  Here's the three cons to the offer (in no particular order):

1) It is an employee position.  While this might not see like a con, I have been doing my own consulting for the last 2 years.  I enjoy it.  The current client is probably going to extend the contract for three months (and I would need a higher rate at this point).  Being an employee wouldn't preclude me from continuing some of the other side might not be allowed given the space while not exactly similar is tangental.    I talked to them about consulting and they are not interested in that.  They want someone full time.

2) There is no 401K match, currently.  The recruiter claims they are re-vamping their benefits package and says that is one thing they are looking to add.  It is a smaller company and currently they only match up to a certain salary.  They are looking to remove that cap.

3) The commute will suck in about 2 months.  Currently, the office is 20 minutes form me.  They are moving in September to be about 45-60 min commute. 

The job position is for a smaller company and the role is what I enjoy to doing.  I would even be working indirectly with a guy that I graduated college with and am good friends.  It is one of the reasons I started talking to them.

So the ultimate question is: how do you value not having a 401K match and how does it impact a salary request?

On a separate note, while googling for trying to find this answer, I came across the following article:
http://www.bloomberg.com/bw/articles/2014-08-13/why-your-companys-401-k-match-is-worth-less-than-cash

forummm

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Re: Job Offer Contemplation
« Reply #1 on: June 06, 2015, 07:04:25 AM »
It could be a good idea. Some thoughts:

If you switch from SE work, you'll lose some of your solo 401k benefits (the effective ~18% of earnings you contribute to yourself as employer contributions).

The Bloomberg article is assuming you're a spendypants in retirement, and only save a fraction of your allowable 401k contributions. Not relevant to those who max out and retire early.

Insanity

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Re: Job Offer Contemplation
« Reply #2 on: June 06, 2015, 08:09:24 AM »

It could be a good idea. Some thoughts:

If you switch from SE work, you'll lose some of your solo 401k benefits (the effective ~18% of earnings you contribute to yourself as employer contributions).

The Bloomberg article is assuming you're a spendypants in retirement, and only save a fraction of your allowable 401k contributions. Not relevant to those who max out and retire early.

That was exactly what I thought about the article.  They talk about liquidity, but if you are investing the compounding rate is so impactive. That is why I am trying to think about how to adjust salary.

Usually I would put in to maximize match.  But now I would probably max it out and request the normal match in salary.

The current rate that I am at (if I did the math right) is about 20% lower after factoring business expenses and employer paid taxes than the potential gross salary.

Hoberto

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Re: Job Offer Contemplation
« Reply #3 on: June 06, 2015, 08:45:55 AM »
Two hours of driving (if you're driving) daily adds a lot of time and gas, car maintenance costs.  Think about that when you get your offer. 

Ricky

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Re: Job Offer Contemplation
« Reply #4 on: June 06, 2015, 08:50:50 AM »
 You don't know the salary and your commute will be tripled. Also, you prefer consulting. Hello?

Insanity

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Re: Job Offer Contemplation
« Reply #5 on: June 06, 2015, 08:51:23 AM »

Two hours of driving (if you're driving) daily adds a lot of time and gas, car maintenance costs.  Think about that when you get your offer.

Yeah the commute is one of the biggest downsides.  But, most I the jobs I have are a commute (right now I buy a monthly train pass to commute to the city).  And whole a 35-40 min train > 45-60 min car ride, the cost isn't that much different.

Hoberto

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Re: Job Offer Contemplation
« Reply #6 on: June 06, 2015, 09:42:36 AM »

Two hours of driving (if you're driving) daily adds a lot of time and gas, car maintenance costs.  Think about that when you get your offer.

Yeah the commute is one of the biggest downsides.  But, most I the jobs I have are a commute (right now I buy a monthly train pass to commute to the city).  And whole a 35-40 min train > 45-60 min car ride, the cost isn't that much different.

Ugh, I would hate that.  Funny how what's normal in one part of the country is uncommon in others.

Insanity

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Re: Job Offer Contemplation
« Reply #7 on: June 06, 2015, 10:29:56 AM »


Two hours of driving (if you're driving) daily adds a lot of time and gas, car maintenance costs.  Think about that when you get your offer.

Yeah the commute is one of the biggest downsides.  But, most I the jobs I have are a commute (right now I buy a monthly train pass to commute to the city).  And whole a 35-40 min train > 45-60 min car ride, the cost isn't that much different.

Ugh, I would hate that.  Funny how what's normal in one part of the country is uncommon in others.

Part of it is the type of work I do.  The other part is where my wife wants to live .

StockBeard

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Re: Job Offer Contemplation
« Reply #8 on: June 06, 2015, 10:42:41 AM »
I used to have a 1h30 commute. It gets old very quickly. 45 minutes is what I would consider to be the ultimate limit for me.

Also, have you worked in the past with that college friend of yours? Working with friends is very different from "having fun" with friends. You could realize the guy is terrible at his job, and it could impact you directly or indirectly? Depends how directly you work with him I guess...

Davids

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Re: Job Offer Contemplation
« Reply #9 on: June 06, 2015, 12:38:57 PM »
Hard question to answer without knowing what the salary offer will be. I assume you would have to be aware that at a minimum it is a good increase over what you currently make or else the whole interview process would have been a waste of time for you.

Insanity

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Re: Job Offer Contemplation
« Reply #10 on: June 06, 2015, 04:01:38 PM »
They were told the minimum I would accept salary wise and have actually gone back to their business because the minimum was above the max of their original range.  So they are aware.

I am not working that closely with my friend.  He an I work well together anyway.  At least we used to as we had projects we had done together.