Potential job offer

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Topic Author
BanquetBeer
Posts: 645
Joined: Thu Jul 13, 2017 5:57 pm

Potential job offer

Post by BanquetBeer »

So I’m kinda bored at my job and they haven’t been good with raises since I joined 6 years ago.
I’ve applied at a few places now that we’re going back from covid WFH. Smaller company ($8B market cap vs current $45B) is interested and basically asked me to put out a number.
Currently company is office M-W, Thurs/Fri WFH with every other Friday off (9/80 schedule). PTO, and 1 extra holiday per year. Current boss is accommodating but set to retire soon and doesn’t advocate for any of their employees.
New company is M-Th in office, half day fridays WFH. Less financially stable (just reorganize after some big losses)

I feel like I should toss out a number I can’t refuse but I don’t know what that is..

I have maybe 6-8 years of work left. Based on planned retirement gross income:
14x saved/invested
Income: 1.3x
Save 0.5-0.6x/yr

Thoughts?
gogreen
Posts: 393
Joined: Fri Feb 26, 2021 3:38 pm

Re: Potential job offer

Post by gogreen »

BanquetBeer wrote: Mon Oct 18, 2021 7:39 pm
I have maybe 6-8 years of work left. Based on planned retirement gross income:
14x saved/invested
Income: 1.3x
Save 0.5-0.6x/yr

Thoughts?
25x - 8*0.6x - 14x ~= 6x
In a happy path scenario you need 6 more years of expense saved. I'd concentrate on financial part rather then on company size / WFH policy :sharebeer
PowderDay9
Posts: 1001
Joined: Fri Oct 12, 2018 12:29 pm

Re: Potential job offer

Post by PowderDay9 »

We probably need more information. Are the roles at the same level? Do you know the approximate salary range of the new position? Is current comp mostly salary or bonus? Are you at the upper end of your current salary range?

In general, I think 15-20% is a good expectation for a new job offer. Maybe ask for 30-50% since you want something you can't refuse?
Topic Author
BanquetBeer
Posts: 645
Joined: Thu Jul 13, 2017 5:57 pm

Re: Potential job offer

Post by BanquetBeer »

I expect stock growth and plan to have low spending for the next 10 years to meet $$. Goal of 3.5% SWR and pretty flexible (current spend is 0.45x + tax + insurance)

Currently about 17% bonus (not structured amount), new position would either be 15% or 20% starting point (I’m sure adjustment factors up and down)
I’m not concerned about salary range; I don’t have to take it and I think they could change the position to fit if things move forward

Jobs are about the same in responsibilities and travel.


Edit: I feel like there is some uncertainty but also work life balance (3 days in office vs 4 is huge) and the half Fridays mean no 3 day weekend trips without vacation - that I would have less of (4 weeks vacation + 2 weeks sick vs current 5 weeks PTO) I think the main push is haven’t felt appreciated in current role and dealing with same problems (like incomplete handover, bad 3rd party agreements) from years ago that the company hasn’t put effort into changing.
almostretired1965
Posts: 497
Joined: Mon Nov 13, 2017 1:02 pm

Re: Potential job offer

Post by almostretired1965 »

For me at least, 30% is roughly the number that would make it a no brainer for me, assuming I am not looking to leave a current position. Has happened to me twice during my career across 6 jobs.
Dilbydog
Posts: 161
Joined: Mon May 23, 2016 10:17 pm

Re: Potential job offer

Post by Dilbydog »

About three years ago we lost a talented engineer, who I would consider a friend, another firm. One day at lunch he told me another firm (not a direct competitor) reached out to take his temperature. The firm left the compensation number open ended and asked “Joe” what it would take to get him to join their firm. He was considering throwing a number 30% above his current pay. Asking my opinion, I jokingly told him to “ask for a number that seems so ridiculous you laugh when you write it down, oh and a Tesla”.

“Joe” is no longer with our firm, and I’ve taken his Tesla for a spin. We’ve never discussed the number, but he said they never batted an eye. What I’m trying to say is: if you’re close to retirement and looking for a cash run, ask for something ridiculous. If they don’t bite, it’s a few more years where you are and you’re out.
Last edited by Dilbydog on Mon Oct 18, 2021 9:46 pm, edited 1 time in total.
fortunefavored
Posts: 1424
Joined: Tue Jun 02, 2015 8:18 pm

Re: Potential job offer

Post by fortunefavored »

I would want market rate. Your current salary isn't relevant in this kind of situation.

That may be 10% more or 200% more.
Topic Author
BanquetBeer
Posts: 645
Joined: Thu Jul 13, 2017 5:57 pm

Re: Potential job offer

Post by BanquetBeer »

Engineering doesn’t really have a market rate. People in similar jobs/experience are earning between 0.8x-1.8x my number. It really depends on the capabilities (technical and personable) of the individual.

So 1.3x -> 1.55-1.7x (20-30% bump) puts me at the top of this range.
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JoeRetire
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Re: Potential job offer

Post by JoeRetire »

BanquetBeer wrote: Mon Oct 18, 2021 7:39 pmLess financially stable (just reorganize after some big losses)
Hmmm.
I feel like I should toss out a number I can’t refuse but I don’t know what that is..
Only you can know what number you can't refuse.

Think to yourself "If they offered me X I would accept immediately."
This isn't just my wallet. It's an organizer, a memory and an old friend.
SwampDonkey
Posts: 321
Joined: Sun Dec 26, 2010 7:49 pm

Re: Potential job offer

Post by SwampDonkey »

Dilbydog wrote: Mon Oct 18, 2021 9:44 pm About three years ago we lost a talented engineer, who I would consider a friend, another firm. One day at lunch he told me another firm (not a direct competitor) reached out to take his temperature. The firm left the compensation number open ended and asked “Joe” what it would take to get him to join their firm. He was considering throwing a number 30% above his current pay. Asking my opinion, I jokingly told him to “ask for a number that seems so ridiculous you laugh when you write it down, oh and a Tesla”.

“Joe” is no longer with our firm, and I’ve taken his Tesla for a spin. We’ve never discussed the number, but he said they never batted an eye. What I’m trying to say is: if you’re close to retirement and looking for a cash run, ask for something ridiculous. If they don’t bite, it’s a few more years where you are and you’re out.
Great advice. This is what I would do if I were in your shoes.
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