Am I making the right decision? [staying at current job]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
uclalee
Posts: 61
Joined: Tue Apr 12, 2016 3:07 pm

Am I making the right decision? [staying at current job]

Post by uclalee » Fri Sep 16, 2016 8:48 am

Hi Bogleheads... So I have dilemma and could use some honest opinions.

I currently have a fairly well-paying job and have been in this position for a couple years. But in general, I am fairly unhappy in this job for a bunch of non-financial reasons (hostile work environment, being an employee) despite doing everything in my power to try to like the position. I have another job offer on the table which I am fairly certain will solve all my non-financial issues (happier work environment, partnership rather than employee). But the best offer leaves me with a 7% pay decrease for the first two years. After two years, Ill be a partner and make the same, if not more money. Can we get by with the pay decrease? Yes. But cuts into our ability to save and will probably stress me out a little.

My gut tells me to do whatever it takes to be happier, but my mind tells me I'm being an idiot for turning my nose up at the bigger salary. I could use a little perspective and advice from anyone whose found themselves in a similar situation.

User avatar
Strayshot
Posts: 274
Joined: Thu Mar 05, 2015 8:04 am
Location: New Mexico

Re: Am I making the right decision?

Post by Strayshot » Fri Sep 16, 2016 8:51 am

Based on the info you have shared, go with your gut and take the new job. Unhappiness will make you miserable much faster than a 2 year 7% salary sacrifice.

NoVa Lurker
Posts: 639
Joined: Tue Jan 18, 2011 11:14 am

Re: Am I making the right decision?

Post by NoVa Lurker » Fri Sep 16, 2016 8:52 am

As someone who took a 70% pay cut for a (much) better work environment, I'd say accept the better job and give your notice today!

User avatar
Lieutenant.Columbo
Posts: 1012
Joined: Sat Sep 05, 2015 9:20 pm
Location: 30th Parallel North

Re: Am I making the right decision?

Post by Lieutenant.Columbo » Fri Sep 16, 2016 8:55 am

NoVa Lurker wrote:As someone who took a 70% pay cut for a (much) better work environment, I'd say accept the better job and give your notice today!


you are brave!
and you must have been pretty unhappy at your previous position!
Lt. Columbo: Well, what do you know. Here I am talking with some of the smartest people in the world, and I didn't even notice!

ponyboy
Posts: 484
Joined: Fri Feb 06, 2015 10:39 am

Re: Am I making the right decision?

Post by ponyboy » Fri Sep 16, 2016 8:58 am

7% pay cut for a better work environment....thats a no brainer. Take the job.

User avatar
Hayden
Posts: 978
Joined: Tue Apr 16, 2013 5:13 pm

Re: Am I making the right decision?

Post by Hayden » Fri Sep 16, 2016 9:01 am

You say you'll be a partner in the new position. What is the stability of the new position, compared to your current position? Will being a partner bring additional stresses? Just some things to consider....

User avatar
cheese_breath
Posts: 7318
Joined: Wed Sep 14, 2011 7:08 pm

Re: Am I making the right decision?

Post by cheese_breath » Fri Sep 16, 2016 9:04 am

I'm another who took a pay cut to move. The current work environment was OK, but the new position had greater growth potential. Maybe your new position will have better growth potential too (partner in 2 years)?
The surest way to know the future is when it becomes the past.

B0bL0blawsLawBl0g
Posts: 96
Joined: Thu Dec 17, 2015 12:36 pm

Re: Am I making the right decision?

Post by B0bL0blawsLawBl0g » Fri Sep 16, 2016 9:14 am

I took a 35% paycut a couple years ago. Part of the rationale was for improved work environment, part was for lifestyle reasons, and part was for added job stability (my long-term prospects at my higher income job were always uncertain, and that gave me great stress).

I'll admit I did have some trepidation and anxiety at the time -- what kind of moron voluntarily takes a 35% paycut! But, I don't regret my choice for a minute.

7% is nothing. Take the new job.

uclalee
Posts: 61
Joined: Tue Apr 12, 2016 3:07 pm

Re: Am I making the right decision?

Post by uclalee » Fri Sep 16, 2016 9:27 am

Thanks for all the perspective. I do think I will have greater potential for growth as well as more autonomy and voice. Job stability is always up in the air regardless where I practice since everyone renegotiates their contract every 3-5 years. 7% does seem like relatively little compared to some of your sacrifices... and no one seems to voice any regrets here.

B0bL0blawsLawBl0g
Posts: 96
Joined: Thu Dec 17, 2015 12:36 pm

Re: Am I making the right decision?

Post by B0bL0blawsLawBl0g » Fri Sep 16, 2016 9:34 am

uclalee wrote:Thanks for all the perspective. I do think I will have greater potential for growth as well as more autonomy and voice. Job stability is always up in the air regardless where I practice since everyone renegotiates their contract every 3-5 years. 7% does seem like relatively little compared to some of your sacrifices... and no one seems to voice any regrets here.


Part of the luxury of being paid well, is you can afford to take a (drastic) paycut for lifestyle reasons. I went from roughly $200k to roughly $130k, and as I said I don't regret it for a minute. But I'm not sure I'd feel the same about going from $100k to $65k, or from $50k to $32.5k, which would also be 35% paycuts. But, I take from your post ("fairly well paying job", "Can we get by with the pay decrease? Yes."), that your situation is closer to $200k than to $50k.

Good luck.

N10sive
Posts: 319
Joined: Thu May 05, 2016 6:22 pm

Re: Am I making the right decision?

Post by N10sive » Fri Sep 16, 2016 9:49 am

More stress worrying about the paycut? Aren't you more stressed at a job you don't enjoy? For 7% paycut I wouldn't hesitate to move jobs.

User avatar
njboater74
Posts: 612
Joined: Mon Apr 25, 2016 8:21 pm

Re: Am I making the right decision?

Post by njboater74 » Fri Sep 16, 2016 9:55 am

A better work environment is likely to make you a more productive, passionate,and dedicated employee. Those three attributes will lead to higher pay down the road. It's an investment in your future. Good luck with your decision!
When the mob and the press and the whole world tell you to move, your job is to plant yourself like a tree beside the river of truth and tell the whole world - 'No, YOU move'--Captain America, Boglehead

MathWizard
Posts: 2632
Joined: Tue Jul 26, 2011 1:35 pm

Re: Am I making the right decision?

Post by MathWizard » Fri Sep 16, 2016 11:42 am

Is the partnership assured? Do you have to pay anything to become a partner?

If the answers are yes and no resp. they the answered is an unqualified GO and don't look back.
If not, then more info is required.

User avatar
BolderBoy
Posts: 3401
Joined: Wed Apr 07, 2010 12:16 pm
Location: Colorado

Re: Am I making the right decision?

Post by BolderBoy » Fri Sep 16, 2016 11:51 am

uclalee wrote:My gut tells me to do whatever it takes to be happier, but my mind tells me I'm being an idiot for turning my nose up at the bigger salary. I could use a little perspective and advice from anyone whose found themselves in a similar situation.

How old are you? When I turned 52 I took a 50% pay cut for a VASTLY improved lifestyle / work environment not knowing that just a few years later I'd be making 200% over the job / life I'd left behind. Thinking back, it seems surreal.

Do it!
“Where you stand, depends on where you sit” - Rufus Miles | "Never underestimate one's capacity to overestimate one's abilities"

Post Reply