Pros and Cons of Job Relocation to KL

[dazza_73]

Context :

I (30, single, M) received an offer to transfer to HQ (KL) with a 50% base increment (from 4k to 6k). To put it simply, I do sales.

I will be doing the same role there as I am now in the same company, just relocate to Kuala Lumpur to hunt and farm the companies there.

However, I have been asked to consider the following :

Pros :

1. Higher basic pay.
2. Larger accounts (more chance to get higher commission).
3. More exposure to larger MNC and C suite engagements.
4. Independence (might be pro/con or both at the same time)
5. More likely to be promoted to higher management role instead of in a regional level.

Cons :

1. Higher cost of living
   
   (Can be adjusted but people around my social circle say I need at least 7 to 8k a month to live at the same comfort level I am living now but the only difference is that my living expenses now is heavily subsidised by my parents since I am still under their roof, but I am expected to bear all these expenses if I were to relocate ).
2. Working in HQ means more direct involvement in office politics.
3. Far higher stress levels.
4. Lose WFH flexibilty, less work life balance due to time spent in transit.
5. More aggressive competitive market, higher turnover rate.

If anyone can think of anything to contribute to the pro and con list before I can make a more informed decision, feel free. I still have time until September to consider since there are too many uncertainties to consider.

 

[lunamu]

@dazza_73 Go for it. There are a lot of intangibles to benefit from.

You will elevate yourself. Bigger game means better experience. More politics & human antics, although unpleasant, means you will develop a more diverse set of skills to solve problems (close a sale).

Moving out and living on your own will also force you to grow. It shapes personality and creates a life drive/ determination.

You will also open a lot more doors for personal and career growth. The people you meet are all mini-quest givers with random-sized rewards. Not to mention travelling to see the world is easier from the capital. Then even more self-growth, etcetera.

 

[dazza_73]

@lunamu You’re right. My actual concern is actually in the career and income part, not so much on the benefits of personal growth if I choose to relocate.

Leaving means my existing client base need to be handed to the person who will taking over my role here (no cross region selling allowed).

I averaged about 18k per month gross at my current location in 2022, and currently as of 2023 stands at 14k per month. Pipeline projection for 2024 will exceed 2022 though.

Even if I benchmark my teammates who are in kl, only 4 of them probably out perform me, 3 of which are pretty close (within a 20-30% range higher) while the top sales makes what I make in a year in 3 months so I’d count him as an outlier.

The discussion with management is as follows:
I will be under the same performance monitoring programme in which I am given 6 months to produce substantial result or I will go into PIP. And by then there would already be a replacement for me so I cannot return to the same role here and there’s a slight worry that I might not reach this level of income again.

My reporting superior’s response was :
“Try, don’t say you cannot do before you try. What’s the worst that can happen? PIP, fired can always find a new job.”

 

[zadeet]

@dazza_73 This is more important info than what you've put in the main post. Please make an edit there and include this info.

Moving to KL means losing your sales pipeline and having to build it from scratch. And add to that if you don't perform as before, then you get PIP? And you only get 6 months to do so? How many years did it take you to get to your current sales? Nearly impossible to do.

This is someone trying to kill your career because they're jealous of you. Especially when you now reveal that you're already performing with around RM15k per month in commission from sales. Whoever takes over your current role and gets all your commissions in the pipeline will be very happy...

And you get a paycut from RM 18k ( 4k basic + 14k commission) down to RM6k (6k basic + no commission yet)

Make an edit and include this info in your main post, and DON'T move to KL unless they can promise you the commissions that are currently in the pipeline (which you worked for) and also won't PIP you if you move.

 

[dazza_73]

@zadeet

Moving to KL means losing your sales pipeline and having to build it from scratch. And add to that if you don't perform as before, then you get PIP? And you only get 6 months to do so? How many years did it take you to get to your current sales? Nearly impossible to do.

Thank you. It took me a good 1 year before I could kick the ground running. But we are under extreme pressure for results now as management are anxious to produce results to be presented to shareholders. Turnover is getting crazier too.

And you get a paycut from RM 18k ( 4k basic + 14k commission) down to RM6k (6k basic + no commission yet)

Yes, this is my concern. It's not that I doubt my own capabilities, but I do think the timeframe is rather short. In 6 months I'd probably still be delivering subpar result. However, I have gone through each and every comment in this post, and I appreciate the insight. I will bring this up to see if I can maintain at least some of the pipelines to compensate some of my lost in income at least until end of 2023. I also intend to ask for relocation allowance and a higher base increment, whichever they are open for negotiation.

Thank you!

 

[lunamu]

@dazza_73 Well argued and fair enough. I can see your predicament there. It's definitely worth thinking twice.

I suppose it also depends on where you are in your personal life. If I have kids, I'll probably not risk it. But if I'm single, I'll still bet on myself to succeed wherever I go. Either way, both aren't wrong decisions.

All the best, my friend.

 

[dazza_73]

@lunamu

Either way, both aren't wrong decisions.

Thank you. You are right. I just need more insights before I can make a more informed decision since I have always been very risk averse. For better or for worse, ultimately it's a choice I have to make and consequences I need to deal with.

I'll still bet on myself to succeed wherever I go

Haha. I envy that you have such confidence. I often told my management that I'm lucky and blessed whenever I encounter any sort of success whether in discovering opportunities or closing but they really hate that sort of answer.

 

[russman]

@lunamu If I were him/her, I won't even risk it, why take unnecessary risk for money you don't need? 15k per month + diligent investing will make him very fast. I doubt many managers make this kind of money

 

[ikarengrace]

@dazza_73 I feel weird that company moved a reliable face from EM to expand on WM business. If the future pipeline is not lay out clear (which targeted client and etc) this is very risky from business perspective.

Why it have to be you but not a WM new hire or other top sales? Find that answer before you make any decision. I think that's more important than the raise in basic.

 

[internetimm529]

@dazza_73 seems like more risks than benefits.

if you still consider moving, why not wait for one of the KL folks to leave so that you take over their accounts?

 

[cimaty]

@dazza_73 Just a counter point to many who say move.

If you stay and build roots where you are, it can pay out in the long run also. Become the local "king" since you have the relationships with customer. No HQ to kacau you.

In a few years when you have a family, you may appreciate less stress/more time than living in KV.

It also depends on which part of KV you are in. If you office in the heart of KL, traffic can be horrendous.

Have a friend move his family out of KL for a less stressful life.

Anyway, nobody knows the future how things will pan out either way.

 

[iyimipiru]

@dazza_73 Do it. You're still able to move to KL when your commitments aren't high, you do not have a partner and it's only all upsides when it comes to your career. If after 2 or 3 years, you feel as though KL is simply too much, you can always move back to Sarawak.

 

[johnsteam86]

@dazza_73 6k is fine. Many people survive in KL with far less.
Go for it if you want to advance your career.

 

[johnettec]

@dazza_73 higher chance of actually getting laid or finding a modern girlfriend.

 

[saji467]

@dazza_73 Consider your listed pros and cons, this is a good chance to get out of your confort zone, and you are still young. If already want to retire, than stay

 

[pmmg]

@dazza_73 One more con. We su*k and always make fun of people not from KL.

 

[alexnbethmom]

@dazza_73 Getting a car here will set you back by RM 800 a month, just for transportation cost like parking, tolls, petrol and car maintenance. For sales, there should be higher transportation cost due to the travelling required. Better ask how much is the car allowance.

A danish MNC in KL gives their employees that is not sales related but business development related RM 800 a month in car allowance. Road tax and insurance is also covered and touch n go card of RM 200 a month.

This is just the running cost. A car will set you back by RM 22,000 if you get the cheapest Perouda Axia. Unless you get a second hand car.

A master room without air cond in the city is RM 650 or so a month. Air cond is required as the heat is unbearable at times at night. But some tells me they can do without aircond. So your call.

So these are cost you cannot control so to speak. It's the market rate.

Unless PM removes the fuel subsidy, then everything is up in the air. I feel this will happen sooner or later. The electricity subsidy will soon be removed as already announced for the T20 or those that earn more than RM 10,000 or so a month.

Before you commit. I feel you need ask a basic fundamental question. Do you have a 6 months emergency savings on standby or 6 months of your current monthly salary ? If not, normally I feel there isn't a need to go for this. Rather just upgrade your skills or get some certifications. This will place you in a better position to be competitive and possibly demand for a higher salary.

I just did an interview with a bank about 8 months ago. After 20 minutes of interview, when asked about my salary expectation I requested for a 30% increment. The immediate answer was no. While I was on holiday in Sabah, I received a call saying they agreed to match my request.

The work is hard. My previous work was more predictable and slow pace. I was able to focus on areas that I want to work on and learn. I also enjoyed much leeway due to the fact I established good working relationships with people around me over the years. I sometimes have doubts whether I made the right choice. Then again, the experience is both good and some bad too at this new bank. I learned much and also contributed much, I often tell myself as part of my self feedback analysis. My perspective of things also changed as this bank have a bigger IT budget of a few hundred millions a year. So the technologies I touch on is more diverse and I travel too to overseas to meet the people.

It cannot be all good I know. Tough at times. So I am incline to say you should try if you feel this opportunity is a really good one. Then again, you should ask for a higher pay. If you cannot sustain yourself financially, you will be affected and cannot focus on your job.

I am from Kuching, Sarawak too.

Soon the government will published a quarterly salary guide so that public is informed on what is a reasonable salary based on the job and location. Do check that out when it is published.

All the best.

 

[dazza_73]

@alexnbethmom First of all, thank you for the time to type a long reply.

Getting a car here will set you back by RM 800 a month, just for transportation cost like parking, tolls, petrol and car maintenance. For sales, there should be higher transportation cost due to the travelling required. Better ask how much is the car allowance.

A danish MNC in KL gives their employees that is not sales related but business development related RM 800 a month in car allowance. Road tax and insurance is also covered and touch n go card of RM 200 a month.

I have car allowance of RM1,000 a month, which is separate from my base salary of 6k (I also have it now with my 4k base salary). Of which I expect my car running costs including toll and petrol to be between RM600 to RM800 a month due to the need to travel to and fro for sales. While I don't intend to bring my car from here over to KL, I do plan to just buy a car there, probably a decent car within 70k.

A master room without air cond in the city is RM 650 or so a month. Air cond is required as the heat is unbearable at times at night. But some tells me they can do without aircond. So your call.

Based on my calculation, I allocate a budget of RM1,800 for rental and utilities for a studio apartment. I expect food to be largest budget allocation since I enjoy food although I have small appetite, thus it would be RM3,000.

Before you commit. I feel you need ask a basic fundamental question. Do you have a 6 months emergency savings on standby or 6 months of your current monthly salary ? If not, normally I feel there isn't a need to go for this. Rather just upgrade your skills or get some certifications. This will place you in a better position to be competitive and possibly demand for a higher salary.

I have about 280k of which 100k serves as my emergency fund in my current account, while 180k is invested in stocks and unit trusts. If I were to stretch the 100k, I can still live a rather comfortable lifestyle for 1 year (if no actual emergency were to happen within that time period).

It cannot be all good I know. Tough at times. So I am incline to say you should try if you feel this opportunity is a really good one. Then again, you should ask for a higher pay. If you cannot sustain yourself financially, you will be affected and cannot focus on your job.

I have taken into consideration and read through all the comments people have replied to this thread and have arranged a meeting with my direct superior on Monday. I will request a higher base ( 100% increment ), relocation fee as well as approval to maintain my current pipeline for a few months since majority is my income is from commission. This is to prevent my income from taking a nose dive immediately upon relocation since I need plenty of time to build my own client base in KL.

Again, thank you for the insight. Appreciate it.

 

[alexnbethmom]

@dazza_73 All the best.

Hope for the best and plan for the worst.

Assuming a recession does come and you lose 75% of the value of your equities.

Do you have capability to sustain or ride out the storm ?

I ask myself that too. That is why I am exiting my equities if I can and making my portfolio to be on equal footing. 50% fixed income and 50% equities. Increasingly now it is leaning towards fixed income. For equities, when I can I will switch to the Vanguard S&P 500 ETF via rakuten trade because I can distribute the risk to the 500 best companies in the US stock market over the long term, I don't do trading, I just hold as passive investor and ETF only charge about 0.03% in managemend fees vs a few percent for unit trusts. I've exited all my unit trusts already.

Maybe you should bring your car over as the cost isn't too high as I understand it. If by chance you pass your probation and you are keen to continue, then you can commit 70k for the new car. No need to get into debt at the onset of a new job.

Because of the inflation, meaning the value is money is now less. You can buy less goods and services with the money you have. I have started to open a maybank singapore account by visiting a local maybank branch in kl. I use bigpay to transfer the money to the sg account. Seems cheaper that way.

If you can keep 20k in sgd or about 70k myr, you can earn 3.9% at maybank sg. I intend to that soon.

Increasing it is good to think long term.

All the best.

 

[billallen9]

@dazza_73 where are you moving from?