Monday, May 07, 2007

New Job Offer?

Okay DH interviewed for a new job, he hasn't been at his current position very long only 18 months, but he really wants to switch jobs. There are both financial and logistical considerations. First his current job is not very supportive of his part-time MBA. They said they would be, and the VP of the department fully supports him, mainly because he has an MBA/PhD as well. But the rest of the people don't. So he doesn't enjoy this work environment.

Also the company is not paying for any tuition reimbursement, so we're footing the entire $75k ourselves, over 3 years, which is a lot of money. This does not include books and other stuff, this is purely tuition costs. But we feel this is a phenomenal investment in him and well worth it.

The company he interviewed at fully reimburses tuition for all employees. They feel that a happy employee is easier to keep. And that people who are trying to improve themselves are better employees. So that would add an extra $50k to DH's salary over the next two years if we don't have to pay for tuition. Plus the work environment supports people's desires to go to school.

With that being said, the current company DH works for is very generous salary, bonus, and especially company stockwise. Meaning he gets twice annually company stock bonuses (July/Feb), plus an annual signing bonus December, an annual cash bonus (february), and is suppossedly well paid. So we're in a tough situation of thinking what would it take for DH to move?

He makes $x, then his bonus was 8% cash February, $2k stock February, he gets an extra $2k July, $10k December, and his raise was 4%. Not too shabby. Plus decent company benefits, including now an extra week of vacation added this year to make 15 days of paid vacation. So which is more valuable?

Assume same pay, same bonus, same raises, then the stock is about $14k versus the tuition reimbursement of $25k/year. Is it worth it? Well we'll see because he doesn't have an offer in hand, nor does he know what they would offer by way of company stock.

However he is leaning towards switching because one huge bonus is the new company is going to give him immediate management experience and track him on that course. Where he is currently he will be unable to move upwards because they are a top-heavy company with a lot of people much more senior than him. A neighbor recently left as well because of the difficulties in moving up in the company.

He explained that for many people though, they are happy there because the compensation is extremely generous. Though you don't get promoted or more responsibility the company will give very generous bonuses and company stock to get you to stay.

So less responsiblity = more money, but no upward mobility. But more responsibility = potentially less money. Tough call. I'll keep people updated because I think we'll make a decision in the next month.

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