My fixed salary is stagnant since 2022. What should I do?

[pink318]

Background: I'm an MBA graduate of 2020, from one of the prestigious Indian b-schools. Got a PPO which got revoked due to COVID. Joined an e-commerce company by taking a 30% paycut.

I'll be completing 4 years in this firm soon. Have received good rating in each cycle and got promoted in 2022.

Currently I make 1.5L per month (in-hand post tax). Last year received additional ~8 L as part of buyback and 2L as variable pay. I expect to recieve good ESOPs in this cycle too and I expect the company to go for an IPO next year.

My dilemma is should I continue in the same firm for another year waiting for the IPO or should I start looking for a switch to increase my fixed salary?

 

[karen451]

@pink318 If you get a switch worth the money, go for it.
If not, you are in a better place than us to determine if the ESOPs are worth staying in or not.

 

[becausesheweeps]

@karen451 Only trick is that when you are making switch then make sure that next company counts your ESOPs as part of CTC and atleast give you RSUs against those.

 

[iamorange]

@pink318 ESOPs are often vested over 3-5 years. And the vested ESOPs can only be sold after a certain time period. These are some retention tactics HRs employ. Depending on your designation and your anticipated ESOP value, you can make a call.

Personally, I’d rather hold ESOPs of a startup which has the potential for tremendous growth in the initial years which will be considerably higher than whatever salary hikes you would be getting.

Good luck OP!

 

[julesmarie]

@pink318 Not going to IPO next year, IPO is a long drawn process. Best case scenario it will go to IPO in 2026 ), even then employees would have 1 year lock in period I think before they can sell their stocks to public

 

[stabao]

@pink318 An old grad here from a relatively reputed B school.

If you like what they are doing and trust your organisation's vision then there is merit and staying put where you are and growing along with the organisation. The credibility that you build as you spend more time doing good work in a growing organisation can take you to greater heights.

If the organisation is more about making the books look good while things are not fine underneath then that could be a good starting point to consider making a move.

Basically at your earning bracket salary you should not be too worried about salary in the short run (2-3 years of joining any company), if you are getting the due respect in your org.

 

[luke22490]

@stabao Define good work.

I feel I do great work in my org, but HRs think its run of the mill, or often plain lies. It's great cause it wasn't ever done.

So how do you define good work

 

[stabao]

@luke22490 Annual Ratings is the metric to look at.

HR does not decide your ratings unless you work in HR. Usually it's your manager and your skip level or the head of your department who play a big role in determining your ratings.

 

[luke22490]

@stabao Wait! I was talking about HRs of other companies where I want to apply

 

[stabao]

@luke22490 Reality that I have come to term with is as follows:

Build your professional network. If you are good at what you do, your superiors or peers who have moved to other organisations would like to pull you in. Sometimes they may also refer you to other companies.

In all such cases, it's the HR which usually gets the Resumé from someone else and seldom from you directly.

 

[pink318]

@stabao I trust the organization's vision. I am sure that they'll do well even after the IPO.

My friends are already making 1.5-2x in fixed of what I'm making. And I'm worried if I might remain underpaid in the market.

 

[stabao]

@pink318 Your call.

You should evaluate the risk reward available in the job market for folks in your experience bracket.

I'm assuming you'll not be aiming to join an IB. MBB firms may pay 55-60LPA (estimation for 3LPM of in-hand) of fixed salaries for top lateral hires with 4 years of experience. A few start-ups may pay you the money that you aspire for and you'll be wise to evaluate the risks/ rewards associated.

AFAIK, a large number of MBAs from top institutes may not be making in-hand fixed salary of 3L per month after 4 years after graduation.

3L per month would amount to approx 55LPA of fixed salary, using some guesstimates to adjust for taxes. What was the avg CTC of the IIM-ABC batch for the 2020 course? CTC would include elements like joining bonus, performance bonus, etc. Fixed would be lower than the CTCs that are quoted.

Wish you all the best.

 

[ballnbass7]

@stabao Chutiya gyan

 

[lordpleasehelpme]

@pink318 good to know info: post mba, with good comm skills, kids are getting 25,000 p. m. offers

 

[247worrier]

@lordpleasehelpme Unless you fucked up or deliberately chose a low paying offer, it's very unlikely for a prestigious MBA college grad to get that low a pay. There is a reason people suggest MBA only if you make it to the good ones, otherwise a shit tier MBA is as good as none. MBA doesn't teach you any major hard skills that a few YouTube videos can't. It's just about the prestige.

 

[sameesamoa]

@lordpleasehelpme Lowest I've heard of is 35k/m if you're from a shitty college and screwed up placements.

 

[ploverwing]

@lordpleasehelpme Only if you’re from a shitty B-School

 

[writerhomework]

@pink318 An e commerce company going for IPO where you also got buy back . Are you at flipkart ? If yes, then you should probably leave.

It’s a long road to ipo and will probably not happen next year.

 

[mgs_pepe]

@pink318 Hello Flipkart boi!

 

[julesmarie]

@mgs_pepe Lolzz