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Seek 20% salary increase for new job…
Posted by: endymion
Date: September 07, 2021 10:50AM
I recall it being said more than once to seek 20% salary increase on a new job, all other things being equal.

Where does this number come from? Why not just 10 or 15 percent?

And if other things are not equal, then what?

I’m not unhappy where I am now but a little stuck. No really opportunity to move up, although lateral and then up is possible but it means adding/enhancing multiple skill sets. I occasionally look for new jobs - turned one down at the start of the year because something was off about it and the money wasn’t quite there. More recently have had a former peer from a previous job seeking to hire me on at a less well established firm in a different line of business (although my work would effectively remain the same, just different people and specific hardware to manage.) This peer/friend would be my manager and loves the place. But the offer coming in is a little lower than we expected, and there’s enough uncertainty and difference in other benefits that now I need to start doing all the math. For example current job has 401k matching deposits from employer; prospective job has no matching. Current job has a separate pension plan which I have vested (I know right? That right there makes it kind of a keeper.) Prospective job will grant me some value in stock vesting over 4 years. (Turns out the amount of growth in pension lump sum payout and stock grants are about equal in present value over the next 4 years…) There likely would be opportunity for growth if I want to move into management (which I still don’t want to do… yet. But some day, maybe, as it gets increasingly challenging to keep my technical skills up to date.)

I just feel like if the money isn’t quite there and all these other things require mental work to figure out I am likely to just stay where I am…

Advice on the 20% pay increase for taking a new job?
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Re: Seek 20% salary increase for new job…
Posted by: mattkime
Date: September 07, 2021 11:08AM
>I just feel like if the money isn’t quite there and all these other things require mental work to figure out I am likely to just stay where I am…

Seems like you have you have your decision.

I never heard of this 20% thing.



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Re: Seek 20% salary increase for new job…
Posted by: gabester
Date: September 07, 2021 11:17AM
20%? This says 30%:

https://www.inc.com/lou-adler/dont-change-jobs-unless-you-get-a-30-increase.html

At least you have a job and can be selective with offers when they come in. It does sound like you've made your decision... but consider the opportunity of being in a new place and to be able to do new things.
g=
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Re: Seek 20% salary increase for new job…
Posted by: clay
Date: September 07, 2021 11:22AM
probably depends on a ton of factors. You can make a personal "rule" about minimum % gain to move employers. But if you're already at the top end of the pay range for your role in your industry, it may be tough to find something higher without some change.

I'd say certain industries, roles, situations tend to offer more situations where pay jumps like this are possible. Doesn't apply to every person in every situation, though, to be sure.
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Re: Seek 20% salary increase for new job…
Posted by: mikebw
Date: September 07, 2021 11:26AM
If you are already vested in their pension plan then you don't need to worry about losing that if you leave, so don't factor that in.
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Re: Seek 20% salary increase for new job…
Posted by: mattkime
Date: September 07, 2021 11:35AM
Quote
gabester
20%? This says 30%:

https://www.inc.com/lou-adler/dont-change-jobs-unless-you-get-a-30-increase.html

That 30% wasn't a pay increase



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Re: Seek 20% salary increase for new job…
Posted by: macphanatic
Date: September 07, 2021 12:21PM
Many factors to consider. If you're in a #h!tty work environment, it might be worth making a change for less. If you're happy where you are and a company seeks you out, ask for more. Other consideration is benefits. Too many move for more money but loose on benefits. A pension and/or better matched 401k, time off, etc may have a better overall financial impact. A 10-20% raise but loss of a pension hurts in the long run.

Many people are now leaving better paying jobs for ones that offer flexibility and/or better quality of life.
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Re: Seek 20% salary increase for new job…
Posted by: N-OS X-tasy!
Date: September 07, 2021 12:31PM
Be sure to also take other factors into consideration. For example, I pay $0 for medical insurance and a pittance for dental/vision at my current employer. If I were to look for a new job elsewhere, I would want to make sure I account for the increased amount I would likely need to pay for insurance into my calculations.



It is what it is.
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Re: Seek 20% salary increase for new job…
Posted by: M A V I C
Date: September 07, 2021 04:10PM
I've never heard the 20% rule, and I have a fair amount of experience with comp. Base pay should be based on data for the role. That could mean a new offer will pay 20% less than your current, or 20% more, or something else. Big tech companies target 90th and 95th percentiles. That means, for a lot of jobs, you can find companies that will pay 100% more than your current gig.

At a certain point, money should not be a big factor. Others have mentioned this. Work/life balance, commute, stock, career growth... all that could make a big difference.




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Edited 1 time(s). Last edit at 09/07/2021 04:11PM by M A V I C.
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Re: Seek 20% salary increase for new job…
Posted by: mrbigstuff
Date: September 07, 2021 05:21PM
I've always tried to negotiate based on vacation time. Some of the gigs I've had were ludicrously stingy on that and others were ok. I'll take a hit on pay, more than commensurate with the hourly rate.
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Re: Seek 20% salary increase for new job…
Posted by: Racer X
Date: September 07, 2021 06:55PM
it is really about total compensation package, as others have danced around. you can monkey around with the variables as long as the total package makes it worthwhile.

I too, think vacation, and as you/we get older, medical/dental.



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