Job Offer - Need help evaluating - determining next steps

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PhillyPhan
Posts: 23
Joined: Wed Nov 28, 2012 9:35 am

Job Offer - Need help evaluating - determining next steps

Post by PhillyPhan » Fri May 23, 2014 8:34 am

Morning,

Thoughts feelings concerns on an offer I received yesterday.

Current position

MegaCorp 1
61K
5% 401k match
2% pension yearly accrual plus 4% guaranteed interest
4 Weeks Vacation
Short Commute - 2 miles
City Wage Tax 3.8%
Not Bonus Eligible - Merit increases of 2-3% yearly
Comfortable work environment , have my office
Limited opportunity to grow within my field without relocating to greater NY area.
7.5 hour workday

Offer

MegaCorp2 (Five times larger market cap)
75K
5% 401k match (After one year of service) 3 years to vest
3% pension yearly accrual plus 4.5% guaranteed interest rate. ( After one year of service) 3 years to vest
4 weks Vaction
Much Longer commute , but goes against traffic - Philly to Wilmington DE (~30miles)
Bonus eligible
No City Wage Tax
Cube work environment
Good vibe from manager during the interview , seems genuine and someone I could work easily with
More opportunity to grow within my career without the need to relocate.
8 hour workday

Options - 1. Is it worthwhile to seek a counteroffer from my current employer?
2. Is it worthwhile to seek additional comp to offset loss of 401K match and pension accrual for the one year waiting period?
3. Will the added commuting costs and added hours on the road eat away at the higher comp ?

Considerations - Not interested in moving closer to this offered position at this time , however in 2-3 years down the road I could possibly move closer.

wilked
Posts: 1179
Joined: Thu Mar 24, 2011 1:50 pm

Re: Job Offer - Need help evaluating - determining next step

Post by wilked » Fri May 23, 2014 8:59 am

1. Is it worthwhile to seek a counteroffer from my current employer?
-Doubtful, gap is too great, company A unlikely to match. That said, if you really want to stay doesn't hurt to ask.
2. Is it worthwhile to seek additional comp to offset loss of 401K match and pension accrual for the one year waiting period?
-I always recommend asking for more. I do not recommend comparing your current benefits against the new one though. Instead compare pay/benefits to industry standards, and argue against those instead.
3. Will the added commuting costs and added hours on the road eat away at the higher comp ?
-You don't mention commuting time, but I would simply figure out door to door (home to home) time spent, divide your daily pay by those hours, and you now have your implied pay/hr. For instance, if I made $52,000 a year and worked 9 hours plus 30 min commute time each way, you have ($52,000 a year = $1000 per week = $200/day. $200 per day/10 hours per day = $20/hr). Do this for both, then compare

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cheese_breath
Posts: 7299
Joined: Wed Sep 14, 2011 7:08 pm

Re: Job Offer - Need help evaluating - determining next step

Post by cheese_breath » Fri May 23, 2014 9:05 am

I don’t have much time now, but here’s my knee-jerk reactions...

… The financials and growth potential favor MegaCorp 2

… Cube vs. office is primarily a status factor. How important is that to you? I left a position where I had an office and moved to one with a cube. But I eventually worked my way back up to an office.

… How long is the commute, and how many hours per day will it occupy? Possibly losing the city income tax might balance out the extra cost? Can you accept the added inconvenience considering you may choose to relocate nearer in a few years anyway?

… I would not ask my current employer for a counter offer. Even if you get one you may have tarnished your reputation as a trusted employee in his eyes.

Personally if it was me I’d take the MegaCorp2 offer. But then I’m not you.
The surest way to know the future is when it becomes the past.

PhillyPhan
Posts: 23
Joined: Wed Nov 28, 2012 9:35 am

Re: Job Offer - Need help evaluating - determining next step

Post by PhillyPhan » Fri May 23, 2014 9:22 am

Commute will be around one hour door to door. There is also a rail system that I could use , that would add 15-20 mins, but help offset gas prices/wear and tear on my vehicle. I also know someone who works int the same business park and could possibly explore ridesharing. Telecomuting might be an option once every two weeks , after 3 months of service.
Despite being only a few miles from work currently , if I walk to work its 35 minutes currently and if I ride my bike or get a ride it is 15 minutes.

jf89
Posts: 426
Joined: Sun Aug 11, 2013 11:53 pm

Re: Job Offer - Need help evaluating - determining next step

Post by jf89 » Fri May 23, 2014 10:54 am

Just two quick points:

1) 1.25% Earned Income Tax applies to everyone that lives or works within Wilmington city limits. Sorry.

**EDIT** I'm not familiar with how this works, but it also looks like Philly wants your money, too. All residents must pay the wage tax regardless of where they work. You might have to figure out if the two will allow an exemption... I believe DC and State of Maryland have some kind of arrangement.

2) Philly->Wilmington in the AM then Wilmington->Philly in the PM only really gets to be a pain entering and leaving Wilmington (in which case you are very much in the traffic). This part really depends on how easily you can get on and off of 95 near home. Not a horrible drive, but definitely 20+ minutes longer than the two miles you're accustomed to.

Overall, I'd go with Option 2 as long as the extra 40+ minutes on the road isn't a deal breaker. More money and more growth potential make up for a longer drive and loss of an office.
"Save as much as you can, diversify diversify diversify, and you can't go wrong with tech stocks" | -First investing advice I recall from my parents in the 90's (two outta three ain't bad)

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