I recently got a job offer from another company after they approached me several weeks ago to start a conversation. I'm leaning toward accepting, but before I do I want to make sure I've maximized my bargaining potential and considered all possible pitfalls or drawbacks. I'm hoping that with your help, I can do just that.
Some basics about my current situation: I make $88,000 a year in a HCOL area. I'm fortunate to have health insurance and a 3 percent match on my 401(k) contributions. I have access to an HSA, and I currently contribute some but not enough to max it out. I get about 2 weeks of vacation a year. The commute is relatively short, around 10-15 minutes by bike, and the office is located in a convenient area. The colleagues are mostly great, but management is a little distracted and I find myself having to compete with some coworkers for assignments (or credit for said assignments), which is exhausting and makes me feel like I'm a worthless employee when other, higher-performing colleagues get the limelight. I feel I could also use some additional mentoring or guidance from experienced employees that I'm not really getting. Still, the company I'm with has a great brand and is innovating a great deal.
The new job has a number of benefits, but also some downsides. The salary, even before negotiations, is $160,000 — an 81 percent increase over my current pay. That rises to $165,000 in the second year and $170,000 in the third year. The 401(k) program is more competitive, offering to match 7 percent as long as I contribute 6 percent. They offer about 3.5 weeks of vacation. The work would be relatively similar, though it would involve more media appearances and I would be part of a much smaller team (I regard this as a possible plus, as I won't be competing as much for tasks and would have greater power to set the tone and direction of my work; the flipside is, I could be stretched thinner to cover more ground). The commute is much longer, at around 25-30 minutes by bike, to a much less nice part of town with fewer local amenities (banks, post offices, etc.).
After 5.5 years at my current position, I feel I'm almost ready to move on. But I also recognize that there may be lateral growth opportunities within my organization that I haven't taken advantage of. At the same time, the prospect of a much higher salary, and the feeling of being recognized for my value, are pretty attractive.
There's one key thing that gives me pause: The new job entails signing a three-year contract, with a provision that says if I'm terminated anytime within that period, I'm to be given 30 days' notice and will have the remainder of that year's salary paid out to me. The new organization assures me this is pretty common in their neck of the industry and is rarely exercised, and I've heard much the same from friends and former colleagues who have also made the same jump. They tell me to think of it more as security for the next three years rather than insecurity about the out-years. I see the logic, but it's still unfamiliar and thus a bit unnerving.
I've asked for specific rates for their medical premiums so I can make a more informed counter-proposal. I've also asked them for information on whether their 401(k) plan supports after-tax contributions, in-service distributions and/or in-plan conversions of after-tax money to Roth (hoping to do the mega-backdoor Roth after maxing out pre-tax, Roth IRA and HSA, with an eye toward pursuing r/financialindependence). EDIT: I've now confirmed that the 401(k) plan does not support any of those things, aside from the usual in-service distributions after you hit 59.5 years of age.
What am I missing? What would you ask for to sweeten the deal? I'm thinking of countering with +10% to the salary offer based on my experience and the leadership responsibilities I'd be providing if I joined their team. And if they balk at that, I might propose a $10K salary increase, rounding out the PTO to 4 weeks and perhaps making it so my vacation time rolls over instead of being use-or-lose and see what they say to that. I doubt my current employer can match the new place's offer, but I'll be sure to ask. And then if they do match or beat, bring that to the new employer and see what they say before making a final call.
Any thoughts or feedback you can provide would be appreciated!
Submitted March 20, 2019 at 11:55AM by SquareSheepherder7 https://ift.tt/2Fo2aVX
