Help with deciding on Job Offer/Counteroffer

[sammynq5]

I need to make a career/job decision and being early(ish) in my career would like some feedback and advise. I live in Ontario.

Context: I have 5yrs of experience. Been working at my current company for 3yrs. A competitor recently gave me an offer paying 30% more than what I currently make, to which my company has countered. The details for both are below.

Which would you choose? Appreciate any advise & considerations. Thanks!!

Current company's counter
New company
Role/position
Level 2/4
Level 3/4
WFH (days/wk)
5
3, drive E/W approx. 30 mins
PTO (non-negotiable)
15
15
RRSP match
3%
3.5%
Company stock match
2%
no stock
Next compensation review
Jan'24
Jul'24
Base salary
$96k
$106k
1time bonus
$3k
Depending on performance
1time stock bonus (vested OEY)
$5k

Total 2023 compensation
$104k
$106k
Goal #1-Career growth
Slow growth, not learning anymore
Mid-high growth, high learning curve
Goal #2-Buy house in 2023
Eligible to apply now
Unsure if affects mortgage approval, probation is 4mth

*for the house, have enough down payment, mortg. payments will hurt but be manageable.

 

[kriiisten]

@sammynq5 This seems like largely a personal and career growth decision as the finances are similar.

 

[jjp297]

@sammynq5 Pick the company you wan to work for and will be beneficial for your career. The money listed above hs no material difference.

 

[resjudicata]

@sammynq5 New company recognized your worth and was immediately willing to pay for it, old company was happy to pay you as little as possible until their hand was forced.

Obviously there is much more to consider, but as someone who was compensated below market rate before (at the time I didn’t realize it) I’d choose the new company in a second.

 

[taught2beenslaved]

@sammynq5 Did you ask New Company for $10K more for $116K base salary?

 

[sammynq5]

@taught2beenslaved Yes, I tried negotiating both offers already

 

[poustinia]

@sammynq5 I always value a good work environment and the peace of mind that comes with it. If you feel happy in your current company and their counteroffer is nice then take it.

No amount of money will be enough if your new job is toxic and people unfriendly.

 

[choosejoy22]

@sammynq5 This is work related not finance related, work advise is overwhelming never take a counter, some companies match to keep you around until they can replace you on their terms. Or the company clearly was undervaluing you so do you need to get a competing job every time you deserve a raise now?

 

[iamthankful]

@sammynq5 As an early career person, I’d move just to learn more. I find that the more you’re exposed to different situations, it’ll set you ip for success in the future.

But as an experienced professional, this isn’t enough for me to jump financially speaking. (I’m in a position where I have young kids and it’ll take me quite a bit to move. But I did last year for learning and 25% more base)

 

[resjudicata]

@iamthankful Agree with this. Only take new job to learn more and grow into a better career else where. The new company would make a good pass through job. 2 to 3 years tops in case it gets toxic or stressful.

 

[acher]

@sammynq5 i will take the new job and plus it gives you more career growth that is the most important thing

 

[missswiss]

@sammynq5 At this salary band, this not a money only decision. Review your overall career goal, figure out where you want to be long term, which job will help you get there, take that one.

I personally don’t recommend considering counter-offer ever. Because the root problem that causes you want to leave rarely gets solved by counter offer. It will be just a matter of time before you return to being unhappy again. There are studies done on these.

 

[worshipsongrecording]

@sammynq5

1. 5yrs is too long. Yes there are plenty of companies that rewards longevity, however your Goal #1 states that you have hit the ceiling. Best to move on.
2. WFH 5 vs 3. IMO after doing WFH for the last 2yrs, I'm glad to have hybrid. I get more things done and get the impersonal stuff out. It helps with career growth.
3. When moving to a new company you START at the offered salary and go up. When staying, your employer can opt for marginal raise only. The only way you get to jump up again is to move into another role but as your Goal #1 indicates, it won't happen.
4. If you are pondering on the "bonus" lets not forget you get heavily tax on it. Since you are getting 10k annually more, it should compensate (as per your total 2023 comp
5. Tenure is nice when applying for mortgage but it is more on your risk tolerance on your income. since your base will be an extra 10k, it will be reflected (the stock vested won't count if you are applying now since it wont show up in your total income tax this year, so when applying with your new job, they will ask for last 2 statement to show stability and get an estimate on your fix annual)

Im not saying the choice is obvious but as most said it "5 yrs experience, you are now cap with your current employer and it is time to move on"

In the end it is your choice of comfort if these bullets don't give you the spark.

 

[christinalyn24]

@sammynq5 I would go back to current company and ask more and go back to new company and ask more. Financially the switch makes no sense for now since your new raise is mostly paying for you to drive to work everyday for an hour. If current company can match salary then Id stay to keep my seniority and with current possibility of recession it might be safer. Id go to new company if they offer me a bigger base thus justifying the risk Im taking and the additional work of going to the office which costs a lot

 

[lucylove]

@sammynq5 I'm gonna go against the grain. Don't forget to factor in the 2 hours of driving time each week and the lack of freedom that comes with being in the office for those two days. If the new job was more responsible it would be a no brainer for me.

I also give zero fucks about what my "status" or "email signature" says I am and am purely motivated by cash and freedom to do what I need to do. This may not be you but no way am I giving up a 5 day wfh for 2k the first year and probably not even the 10k after.

Looking objectively I think your current place of employment is actually going to pay you more if you factor in all variables. If it's purely for future career advancement then the new place is better.

My current job allows me to put in my 40 a week whenever I want. I can do some paperwork at 3am if I feel like it and sleep in. I can work 10's and take Friday off. You'd have to give me a fuckton more money to give that up. As long as I'm reachable (I'm on call 24/7) I can do whatever I feel like. The real nice thing is if I get a call at 9pm on a Tuesday that takes 5min that's automatically an hour worked. If I have to actually go into work after hours I get paid hourly for travel time in and out. I'd need to be offered at least 50 percent more to go back to a 9 to 5.

 

[humbly]

@sammynq5 Company 2. Just because it has a better learning experience. You have 5 years experience. And you have a long career infront of you. Think about the growth you would get due to what you learn in job 2.
Don't worry about wfh benefits. This trend started during covid and at some point may or maynot continue.
Also if you change job but are in the same industry, your mortgage affordability or eligibility doesn't get impacted. I changed company and then applied for a mortgage after 6 or 7 months. The bank understood that only my company has changed but not my industry

 

[gabjensnsn123]

@sammynq5 Jesus, there is no upside to the new company. None. Unless you are in a difficult position in the existing one, this is not enough to move. In addition you have built a reputation at the existing one and none in the new one. Unless you shit the bed at your current job. Stay put.
Never change jobs for less then 20% upside .

 

[dave1979]

@gabjensnsn123 They did mention they're not learning anymore in their current role and the new role has learning opportunities (growht). I'd look into asking for more at the new role and pinpoint what the exact learning opportunities/skill increase is, then do another comparison with this new info. Growth pays off long term ...

 

[resjudicata]

@sammynq5 I job hopped to higher income and its a job with a high learning curve. The stress is a bit much at times but I'm leveraging myself to make 6 figures in the next 2-3years anywhere I apply. Only plan to stay in my current role to finish a big project that will help me land other roles.

If you can handle the stress a high learning curve high learning job then take it. Stress now when you're younger means more options later in life. Torture is temporary. You can hop outta new job in a few years and get better WFH and hopefully better retirement/stock options, etc.

No pain no gain. But as others have said. Only take the new job if your certain the learning is worth it, yhe commute is worth it and the environment won't be toxic or too much unnecessary stress.

 

[andrea2016]

@sammynq5 Remember that you were looking for a reason, and that reason may come up again in the future. Also remember that employers remember these kinds of acts, and some can be vengeful. Others, not so much.

I've left a company on very good terms, then returned two years later knowing exactly what I was getting in to. Ended up making 20% more, too. My opinion? Leave on very good terms and there's potential to return if you don't like the new gig. If you're good at what you do and the company isn't vengeful, they'll likely take you back since you're a known commodity.