Total compensation considerations
I am expecting an offer to move from a large 30K+ employee company to 100 employee company. In considering the offer I am unsure how to approach the negotiation process with respect to how I am paid today. Here is my situation. I am in telecom as an R&D engineer. The new company would be similar duties but with direct contact with service provider companies dealing with field configurations instead of a lab. Current employer: 82K base 5% bonus - contingent on company performance, usually only 2-3K 6% 401K match, ~5K/yr >10yrs of service = 4 wks vacation ~6200 10days PTO for sick time+1 personal holiday 1770$/yr for typical medical/dental/vision benefits at corporate rates 20min drive Potential new employer: explained as lower base pay and higher bonus structure, amounts tbd 401k but no matching typically 2 wks vacation but flexible depending on bursty heavy work requirements typical medical/dental/vision, rate TBD 1hr+ drive ~2K/yr extra in gas and maintenance on a vehicle So, from doing plenty of research here I am anticipating an offer 10-15% above the 82K and will ask if it's negotiable if offered. My problem is that while I understand a smaller company would be too busy for me to reasonably expect 4wks off, I believe the skills and accomplishments I bring with those 10years should be considered and my base pay should reflect the difference of 2wks vacation. In addition, since there is no 401k match, I am basically forfeiting 5K/yr in free money which should also be accounted for. So just to break even with no raise I am thinking 90K would be the base pay(82kbase+5k 401k+3k vacation); to which I should anticipate 10-15% raise. Are my expectations unreasonable for a move to a similar position in a much smaller company who has expressed they are growing quickly into a medium sized business? Should I expect a 5-10% base increase instead, to account for the larger bonus structure and should it be based on 82K or 90K? As a final note; I do not expect to retire at the new company but do plan on a 1-3 yr stint. They are also aware I am in no danger at my present position and have been rated highly the last 2 out of 3 years. Thanks for any input. signed, optimistically confused Sorry if I don't "get" your situation, but why on earth would you even consider this job change? I seriously doubt a company of 100 employees can possibly come close to matching what you are making and getting in benefits & PTO.... A lower base pay with higher bonus is absolutely not in your best interests. While I personally prefer working in smaller companies, I can't imagine giving up that kind of vacation time, PTO, 401k bennies, etc., PLUS the hassle of driving an hour or more.... Why not look for something with a compensation package closer to what you are making now? Unless you are independently wealthy and are merely looking for a new challenge, this doesn't appear to be a very good move, IMHO!
I agree with your analysis. you should be lookin for $90K +15% = $103.5 Are you sure the vacation isn't workable? A small company may be flexible. I understand how you've come up with your anticipated salary package, but I don't think I'd be all that interested in a lower salary in anticipation of a larger bonus. As I'm sure you know, bonuses are a function of profitability and performance and there are certainly other factors that can, from time to time, impact bonuses - like the necessity to purchase new equipment or the expectations of shareholders, for instance. You're in an ideal position, nonetheless, to negotiate a salary along the lines you wrote here. The best part is you don't have to leave if the prospective employer can't make it worth your while and I certainly wouldn't leave unless I could be sure I was improving my financial position, but I wouldn't factor in the "prospect" of a higher bonus as a "given" in the negotiation process! Hope this helps. Paul W. Barada The Negotiation Expert
Thanks for the feedback. I may have implied that their offer would be less than I am making now in base. Of course this wouldn't be prudent in my situaton; I was just clarifying their package usually consists of a lower base and higher bonus compared to mostly salary with a little bonus. In reality an amount hasn't been determined yet thus the calculations to figure what is acceptable. | |
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