Monday, October 14, 2013

When do you reject a higher paying job?

I was recently offered a position in the finance department of a construction industry that pays in excess of 20% on top of my current salary. It tempted me without saying. I imagine having to earn an extra 20% a year and even through stocks or property that wouldn't be easy. So having done the cost vs benefit analysis, I am still unsure. When do people reject a higher paying job? Unless you are of course leaving a current job that you love dearly.


The answer to this can never be sure and is probably a 50-50 chance. On one hand, my current role gives me time to pursue on other things like studying and bonding with family but on the other hand, the other role gives me a better opportunity for career advancement. Needless to say, the other role wouldn't allow me time to bond with my family and study, at least for the first year or so.

There are many discussions over a dream job vs lucrative paying job out there and it is more obvious to state the least. But when you are faced with a "nah paying job vs a nah nah higher paying job", the decision is not so easy. Interested to see how folks who are more experienced would take this into consideration.

25 comments:

  1. Hi B,

    20% increase seems pretty substantial. You should consider it. It's good news. At the very least, you know you have market value. =p

    Good news is you're not obliged to "have to take it" since you aren't in heavy debts. Quite the opposite since you already have some substantial assets and dividend income.

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    1. Hi HWW

      Couldn't agree with you more. The monetary potential is great, bringing me a step closer to a 5 digit active income paying job, which would be tremendous. But given my recent marriage situation and studying, I have to think twice. Otherwise, I would grab it without hesitation.

      Delete
  2. My personal take - 20% is not worth it. You must know what you want in life and this is not the "right" sector to me at least...

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    1. Hi Mr. IPO

      Yes 20% in exchange for family time doesnt seem great to me either. But if I am being completely honest, I wouldn't get an increase greater than 20% at my field given my experience. So a good offer in terms of monetary but not so in terms of me sacrificing other things.

      Delete
    2. Well, I was once offered a substantial increase in the advertising sector but that was not what i wanted to head towards so i rejected it. The next time an offer from the financial/investment sector came along, i grab it without a second thought.

      http://www.srsfund.blogspot.sg/2012/09/your-career-is-very-important.html

      Delete
    3. Thank you for sharing your experience :) You are indeed a man with lots of experience in this journey.

      Delete
  3. Hi B,

    It's always a risk to leave your current company especially if you like the working environment. What you working now as?

    I think when we're young we can afford to work more and sacrifice free time. When you have a family and kids, then it'll be harder. But to sacrifice family bonding and study just for 20% increase doesn't seem attractive to me.

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    1. Hi SGYI

      I am working as an Accounting Supervisor right now.

      Like you said, once we have a family, we have tons to consider for. But I agree with you that 20% in exchange for freedom time might not seem sensible. But that 20% alone makes up more than my passive income for a year. That's a lot ><

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    2. Wow, your pay must be quite high now too :P

      If that's the case maybe it's worth it. It depends on you. If you think your pay now is high enough and you can live a comfortable life with time for family and other free time to do the things you love, then it'll be better to continue where you are now.

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    3. Thank you for your kind reminder once again.

      Life is always a balance between the two isn't it. I think I will know what do to ;)

      Delete
  4. Hi B. Are you planning to have kids? You can try to ask for the average working hours per week for your new potential job and convert it to $ per hour. Judge it along those lines to see if its worth it. If you are getting more $ per hour for your current job, then stick to your current job. It also depends on the status of your new position, will it be better for your testimony?

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    1. Hi Hayden

      Actually, that's a great idea to gauge it. To divide it by the number of hours seem the most sensible, but I couldn't really know how much the new role is going to take up. Just got a feeling that my current role is better in terms of $/hour. But in terms of better career advancement, the next role suits better without a doubt.

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    2. I suggest taking the leap forward to a company that gives you a better CV. Furthermore, they are going to pay you 20% more. You are still young, so definitely a very good opportunity for you :) However if they are paying you 20% more for working 7 days a week, then you have to think twice :p

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  5. B,

    LOL!

    You are not asking for advice. You are seeking confirmation on what you have already decided ;)

    By the way, have you talked to her?

    If not, go kneel on bottle-caps and beg for forgiveness.

    You har!

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    1. Hi SMOL

      To be fair, I did really struggle to conjoint the two choices together and have to decide the choices. On one hand, if i were to stay at my current role, it would take me about 4 years probably to reach that stage. On the other hand, the other role gives me career acceleration as well as improved compensation. Both roles are going to be useful in my line but not to my liking. But I know which one you are going to choose ;)

      Hmm, my wife will probably wants me to stay at my role so I hv time for family + studies. Hahaah, it always seem to me that wife doesnt want the husband to have a lucrative career outside that jeorpadizes family time.

      Delete
  6. I sense you are more comfortable to continue in your current job and have the time flexibility.
    If your study is something that can lead to better career advancement in the long term, then I will say that the risk of not completing the stuides is high as an employer giving a raise of 20% will likely expect you to work evenings (and weekends?) for them - unless they know you are super effective and can get their required business outcomes even if you work just 9 to 5.
    Of course, you can enquire more about your job and talk to the people working there. If you think you do not need to spend much time and yet meet management expectations, then I say go for it. (I know some people who are super good at delegating and motivating others that they get things done well and still with time to do lots of "ECA" - e.g. for professional associations, charities etc)

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    1. Hi Anonymous

      You are right in sensing that I am more comfortable in my current role. Changing a new role is never going to be easy and comfortable and people always tend to have and add excuses one after the other. Maybe I am unconciously giving myself excuse as well ;)

      I've heard from people that construction is not the industry to be in. I've always thought it's booming with Singapore being the industrial and commercial hub these days.

      Well, either way, a decision needs to be made soon. I'll take the chances either way after having proper discussion with my wife tonight.

      Delete
  7. Seems like nobody here asks you to jump. Let me be the lone voice then. I think if I'm in your position, I'll jump and take the salary raise straight away. Better yet, I'll tell my current boss that someone is headhunting me and offering me this raise of 20% and I'm thinking hard about it. Is there anything that he can counter offer to keep me? If yes, even better cos you can have the same job but higher salary. If eventually you chose not to change your job, you can have the last say in things and stand on the moral high ground that you rejected the higher salary for a better environment/boss/career (whatever you choose, just don't tell your boss you are staying cos of work life balance). If your boss is indifferent, then you know you're at risk in this comfy job.

    The base jump in salary is important for future career. Don't kid yourself about work life balance lah, I'm sure you can adjust to the new schedule in your job. Be a money whore for the first part of your working life, but once your passive income is substantive enough, then you can play the work-life balance card. That's how I'll do it.

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    1. Hi LP

      Thanks for your detailed advice.

      I plan to do what you said above, that is if I were going to stay I will let my current boss knows that I am staying here because of him (I really like the work/life balance and the boss but not the company). I really appreciate when he brought me in and I don't want to disappoint him by leaving him all by himself for the year end when it gets the busiest.

      The base jump in salary is huge and one which is very hard to find even considering other position. In fact, If i have to be completely honest, I am not going to get a better offer right now with a 20% increment. It seems ironic that I took an MBA in order to look for a better job with a better pay but yet having been offered right now, I reject it.

      Thanks for your suggestion and I will make my decision after talking to my wife tonight ;)

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  8. Hi B,

    Sure, you're the only person who knows the situation best. Best of luck in whatever choice you've made :)

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  9. B,

    1. If it's your dream job, you would have grabbed it without asking about the pay ;)
    Some even take pay-cuts to learn the skill sets they covet.

    2. If it's only about money, then look into the mirror and be at peace that you're a prostitute. Don't mention dream job ever again. Prostitutes can only choose money; cannot choose clients.

    3. Yes. I would have chosen wife ;)

    No women will want to hold their husbands back. Women only want husbands to be happy. Women understand men better than men think they do.

    When you started your MBA or marriage, you have a goal, aim, and dream. Whether this job offer is a distraction or an opportunity, only time will tell.

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    1. SMOL - keke spoken like a man who have been there and done that ^_^

      B - Construction industry cannot lah... you won't regret not going...anyway, a better one coming your way. hahaha

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    2. Mr IPO,

      You have been there before too from what you have shared ;)

      You turned down a higher offer; I took a pay-cut.

      But we are not B, and B not us.

      Anyway, not my style to tell others what to do; just whistling in the wind.

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    3. Hahaha I must call you guys senpai....definitely the correct person to lead a blind man like me... ^^

      Delete
  10. Since you are married, listen to wife bah. MBA - Marriage Before Ambition

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