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Would this be worth a pay cut for your family?


ktgrok
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Can he talk to current employees and see how regular that bonus is? DH works for a major company where, somehow, they seem to have "record years" that are also "not good enough for a bonus" every single year. I swear it's like a Dilbert cartoon. I rather hope new hires aren't counting on that bonus to make ends meet.

 

Yes, he's going to attempt to do that. 

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I wouldn't factor the insurance in too heavily. That's the kind of plan we've always had, plus my husband's company made contributions to our flex savings accounts. No longer. We're now on a high deductible plan, which seems to be the current trend.

 

Insurance benefits can change from year to year. I wouldn't count on something like that stay the same. Also, unless the cadillac tax gets pushed off, there will be a huge incentive for employers to discontinue offering high cost plans to employees. It is supposed to take effect in 2018.

I wanted to say this same thing.  My husband is employed by a large corporation in FL and we have always had amazing health care benefits.  Those are going away next year, because of the Cadillac tax. 

 

Not to say your husband shouldn't look at the offer, but just to say beware because what are great benefits today may not be there tomorrow. 

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Katie--109K for what he does is on the low end of the pay spectrum nationally.  With his certification, and your area, $120+ is more common--at least it was prior to all of the layoffs that the Mouse did last Christmastime. In Texas and other high demand areas, he'd get a lot more salary with a similar cost of living ($140-160K). Seattle and CA offer even higher salaries, but the tradeoffs of COL when you have a family balance it out.  Salaries are lower in the southeast by quite a bit--NC, FL, GA...it was surprising when recruiters came to dh to pitch their jobs. It sounds like a great job, especially if you're tied to the area, but I wanted to give you heads up if you haven't done salary searches lately on a national level.  It's something to think about if you ever do consider a relo.

 

That said, if you were tied to FL, we'd go for it. Being in a better job environment has been awesome for my dh, and we've adjusted to a bonus structured salary pretty easily.

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 IMHO, THE MOST IMPORTANT thing is whether or not your DH would be happy working in the new company. 

 

Well he doesn't have the choice to stay where he is, so it's a new job no matter what. It sounds like this job is the new job that's been around awhile, has slightly lower salaries, better benefits. The other option would be an interstate or long move OR getting a job with a higher salary but about which he knows less and in a company that doesn't have the same reputation. 

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My husband's department may get cut, may get moved to another state, or may be restructured (in which case he'd get a promotion probably). So....chances are something bad is going to happen, but it might be good. His boss is trying hard to work things in the department's favor, but also said to keep an eye out for other jobs. 

 

There is an opportunity with another company, a very very large company that is headquartered here. The envrionment sounds fantastic. Great perks, cheap healthy food options on campus, on on site gym for very little money, an on site doctor, etc etc. But, it might mean a salary cut of about 9K a year. 

 

However, there is a bonus structure, that is written out clearly that may make up for that. AND a probably signing bonus for the first year. But, biggest of all, we got a look at the insurance options. Instead of one carrier with two bad options there are 4 carriers to pick from with 5 plans each. The highest plan is a little more in premiums than we pay now but.....ZERO deductible and ZERO co-insurance and max out of pocket that is 1,500 a person and 3,000 a family. Our current insurance has a 12K deductible per family, and after that we still pay 20%. And we don't have copays now, we just pay the full amount of all doctor's appts until we hit that deductible. The plan at the possible new job has copays of $20 for regular visit, $35 specialty. We'd actually be able to afford to go to the doctor when we are sick!!! 

 

There are also options that have the same premium we have now, but with a lower dedutible than we have now, and lower max out of pocket than we have now. 

 

So....IF things go well, and it looks like they will, this will be the decision. Atlhough, they want to discuss another position with him as well that wouldn't be a salary cut, so there is that as well. 

 

But if it is a salary cut, would the bonuses (18 percent salary a year) and the no deductible, low copays balance it out? 

I'm not sure it IS a pay cut, especially on any year that anyone needs to go to the doctor. It sounds like a raise on that kind of year. 

 

Yes, it absolutely balances it out. 

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To clarify, his salary now is 109,000. This place is saying 100,000 would be the max they can do for the position he applied for. Which still sounds like a ton, although when you factor in our 12K in medical premiums this year, another 12K in deductible that we actually met, plus $900 a month in student loans, plus cost of living I promise you we are not wealthy. 

 

 

http://www.nytimes.com/interactive/2012/01/15/business/one-percent-map.html

 

I understand how you feel, that to do what you are "supposed to do" (supposed to live debt free, supposed to have a safe car, supposed to give your kids the best education, supposed to live in a safe place where kids can play outdoors, supposed to pay a mortgage, supposed to take care of health) you need what you make and more, but sadly, the state of wages in this country means that $100k is indeed wealthy.

 

A lot of people are just defaulting on loans, eating the lowest quality of cheap food, never taking vacations or time off, renting for life, living with chronic health issues, and so on. :(

 

Since I raised my income, we have been wealthy. Since we were under-employed for so long it doesn't feel like we're wealthy. But even taking the average over 10 years we are doing well. It doesn't feel like it compared to what society expects of us!!!

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http://www.nytimes.com/interactive/2012/01/15/business/one-percent-map.html

 

I understand how you feel, that to do what you are "supposed to do" (supposed to live debt free, supposed to have a safe car, supposed to give your kids the best education, supposed to live in a safe place where kids can play outdoors, supposed to pay a mortgage, supposed to take care of health) you need what you make and more, but sadly, the state of wages in this country means that $100k is indeed wealthy.

 

A lot of people are just defaulting on loans, eating the lowest quality of cheap food, never taking vacations or time off, renting for life, living with chronic health issues, and so on. :(

 

Since I raised my income, we have been wealthy. Since we were under-employed for so long it doesn't feel like we're wealthy. But even taking the average over 10 years we are doing well. It doesn't feel like it compared to what society expects of us!!!

 

You are right. We really are. And we did have the years of default, etc. And we still dont' take vacations, and drive old beat up used cars, etc. But we have the luxury of not constantly worrying about money, which we do recognize IS a luxury. I grew up in a house where you never knew how you'd be able to afford the next meal, so this is a dream come true. 

 

I just didn't want people to think that that money is able to be spent on boats and constant new cars and cruise vacations. Cause it's not :)

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Katie--109K for what he does is on the low end of the pay spectrum nationally.  With his certification, and your area, $120+ is more common--at least it was prior to all of the layoffs that the Mouse did last Christmastime. In Texas and other high demand areas, he'd get a lot more salary with a similar cost of living ($140-160K). Seattle and CA offer even higher salaries, but the tradeoffs of COL when you have a family balance it out.  Salaries are lower in the southeast by quite a bit--NC, FL, GA...it was surprising when recruiters came to dh to pitch their jobs. It sounds like a great job, especially if you're tied to the area, but I wanted to give you heads up if you haven't done salary searches lately on a national level.  It's something to think about if you ever do consider a relo.

 

That said, if you were tied to FL, we'd go for it. Being in a better job environment has been awesome for my dh, and we've adjusted to a bonus structured salary pretty easily.

 

He has had job offers in Texas...a former boss is out there in the Ft. Worth area and keeps trying to convince him. And yes, it would be a raise. But I do want to stay close to family. My sister is 40 minutes away, my parents are less than 90 minutes. The kids adore their cousins, and live for time with Grandma and Grandpa. My husband's brother is about an hour away. I just don't see us being able to leave all that. 

 

He did check out salaries again lately. And now that he has his CISSP he's feeling a lot more confident about finding the right job :)

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Yes, the benefits would be a big plus even with a pay cut. You'd probably come out even for what sounds like a better, local situation.

 

We have excellent insurance and still pay a lot in medical expenses because of the volume, so I can't imagine what it would be like if we had poor insurance. Having decent deductibles and out-of-pocket limits is a must for us.

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Regarding the tax rate on the bonus, it's not that hard to look up the tax tables online and adjust your withholdings later in the year if you're loaning too much to the government, which can produce the 'feel' of a bonus late in the year (just in time for Christmas presents and property taxes).  It's just important to remember to change it back in January.

 

That also goes for the 401K withholding.  DH has worked for a company that gives bonuses for about 7 years now, and it's really really nice to have the big chunk of 401K funds going in in January so that later in the year he gets to the point where he can't contribute anymore.  Again, that feels like a raise for the last two months of the year or so, which is very handy.

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Would that salary cap bug you in seven or ten years? That would have worked for us a few kids ago but would be obnoxious long term. The medical might make up for it but I can be demoralizing to never see a raise no matter how good you are because the position has a ceiling. That's what happened when my husband worked for the state. Raised were only for tenure and not performance and though the entry pay was great and benefits were unmatched, by a few years work experience we were below market value for his skillset and moved on.

 

Only you and your husband know what trade offs are tolerable, but that salary cap would be too low for us, in our COL area. The pay isn't bad, but th pay staying there in perpetuity would be the issue, YKWIM?

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Would that salary cap bug you in seven or ten years? That would have worked for us a few kids ago but would be obnoxious long term. The medical might make up for it but I can be demoralizing to never see a raise no matter how good you are because the position has a ceiling. That's what happened when my husband worked for the state. Raised were only for tenure and not performance and though the entry pay was great and benefits were unmatched, by a few years work experience we were below market value for his skillset and moved on.

 

Only you and your husband know what trade offs are tolerable, but that salary cap would be too low for us, in our COL area. The pay isn't bad, but th pay staying there in perpetuity would be the issue, YKWIM?

 

I don't THINK it's a salary cap, just the most they are willing to offer a new person, if that makes sense? There are annual raises, from what I remember him saying. And other positions he could advance to. But very good question. 

 

After he does the phone interview, if that goes well they will have him take what is apparantly several hours of questionairres online. Then if he passes that (he should) he goes for an all day, 8 hour interview. At which point he gets a big book all about the company, raises, salary structure, bonuses, benefits, etc. That's how he found out about the insurance costs/benefits, a coworker of his now is a few steps ahead of him in the interview process. 

 

What really bites is that if he stays where he is there is the small chance he could be promoted, which would mean more like 125-150K a year. But....there is a much greater chance they will move the department, or cut it. 

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That makes a difference, definitely have him ask. A beginning pay band versus the top pay band for a position matters. I get the uncertainty, especially with department cuts. It sound like a solid option to explore and I hope the phone interview goes well!

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What really bites is that if he stays where he is there is the small chance he could be promoted, which would mean more like 125-150K a year. But....there is a much greater chance they will move the department, or cut it. 

Would he be able to jump back if it worked out that way?  Sometimes, although that is a hassle, it does work out well in the end. 

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You are right. We really are. And we did have the years of default, etc. And we still dont' take vacations, and drive old beat up used cars, etc. But we have the luxury of not constantly worrying about money, which we do recognize IS a luxury. I grew up in a house where you never knew how you'd be able to afford the next meal, so this is a dream come true.

 

I just didn't want people to think that that money is able to be spent on boats and constant new cars and cruise vacations. Cause it's not :)

Boy do I hear you. Whenever O feel sorry for myself I look at that plot and remind myself that in many counties, I am really rich (a la Southern Ivy's thread). Good luck with your decision.

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$5M raise to boot.

 

Using M for thousands was extremely typical in the international company I used to work for (engineering). Millions were "MM."

Don't know who set it up that way, but it was probably an accountant who never understood the metric system.  :tongue_smilie:

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Using M for thousands was extremely typical in the international company I used to work for (engineering). Millions were "MM."

Don't know who set it up that way, but it was probably an accountant who never understood the metric system.  :tongue_smilie:

It comes from mil meaning thousand (like your property taxes or Latin mille) and MM is mil x mil so million.

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We did a similar cut recently. It's doable but mentally a little tough. I think because we'd been on the higher amount and taken some expenses on based on that (car loan). We also have lived on much less but that was pre kids and homeschooling. It also comes at a time for us when the kids are getting more expensive, eating more and wanting to do activities that cost money etc. Plus gov is changing funding and tax etc to be better for double income families rather than single income.

 

That said we are better off than many and I'm pretty grateful overall. Just that if you are doing it it would be worth outlining in your budget what exactly is getting cut so it doesn't hit you when you aren't expecting it. Also that it's sustainable long term. It feels ok to cut back on groceries for a year and drop extracurriculars but if you end up not being able to afford extras for the long term it can be frustrating. Generally speaking the best time here to get a good salary is when you take a new job. You might get pay rises from then on but they will be a percentage on your original salary so if you start lower you stay lower.

 

Still having a dh that's happy at work is worth an awful lot, so that would be the biggest factor.

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I wanted to say this same thing.  My husband is employed by a large corporation in FL and we have always had amazing health care benefits.  Those are going away next year, because of the Cadillac tax.

 

Just read this morning that the Cadillac tax has been pushed off again. There are some people who think it might not go into effect at all. 

 

 

Most significantly, the legislation would again push back the “Cadillac†tax on employer healthcare benefits

 

I personally wouldn't make a decision based on government's actions since they can change so quickly (and be put in place retroactively). While I'd look to the future, I wouldn't bank (or not bank) on possible changes. I still think the new job is something to pursue aggressively. If my current job really wanted to keep me, they can always counter the new place's job offer with a promotion if they are able to.

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Even if they had to get rid of the no deductible plan, they offer plenty of others. There is one that offers the same benefits we have now, but the premiums are half what we pay now, or less. So still a net win. 

 

He had a phone interview today. It was supposed to be 30 minutes but went almost an hour with great conversation. He felt he answered their questions well, and they answered his questions well. More, they were (it seems) very honest. Even saying some things that make the company look bad. My husband was impressed by that, as he had smoke blown up his you know what when interviewing for the current job. He has good ideas (that he shared) on how to address the things the company needs to work on, and experience doing it. He's just happy they admitted it was an issue, as he's sick of places that shove everything under the rug.

 

His coworker got an offer from them, and it included a very very significant signing bonus that would more than make up for the lower salary at least the first year. Although, after talking to my husband you guys are right, it's actually a 9K increase. The LOWEST level of bonus is 18%, that's the minimum for just doing okay. It can go higher. He just wasn't including that because bonuses can change. Which is true. 

 

Oh, and after talking with him they agree he's perfect for the first role he looked at, so that's what he is going to apply for. He's really excited about it. Right now he has to take a questionairre/test thing online, then wait to hear from them. Hoping to hear next week sometime, per the recruiter, but with the holidays, who knows. If they do call the next step after that is the all day interview. 

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A few years ago, my company went through a "merger" which was really more of a buy-out.  It was very stressful during about two years.  We were given the option of moving or taking severance.  I took severance but was required to work during a long transition.  When I finally left there, it was like a huge weight had been lifted from my shoulders.  And the ones who moved aren't particularly happy because the new company has a completely different culture and the "others" from my company didn't seem to be accepted very well.  The stress goes beyond just the uncertainty time period.  I wouldn't wish restructuring/mergers/buyouts or the like on anyone.  Very stressful!

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Even if they had to get rid of the no deductible plan, they offer plenty of others. There is one that offers the same benefits we have now, but the premiums are half what we pay now, or less. So still a net win.

 

He had a phone interview today. It was supposed to be 30 minutes but went almost an hour with great conversation. He felt he answered their questions well, and they answered his questions well. More, they were (it seems) very honest. Even saying some things that make the company look bad. My husband was impressed by that, as he had smoke blown up his you know what when interviewing for the current job. He has good ideas (that he shared) on how to address the things the company needs to work on, and experience doing it. He's just happy they admitted it was an issue, as he's sick of places that shove everything under the rug.

 

His coworker got an offer from them, and it included a very very significant signing bonus that would more than make up for the lower salary at least the first year. Although, after talking to my husband you guys are right, it's actually a 9K increase. The LOWEST level of bonus is 18%, that's the minimum for just doing okay. It can go higher. He just wasn't including that because bonuses can change. Which is true.

 

Oh, and after talking with him they agree he's perfect for the first role he looked at, so that's what he is going to apply for. He's really excited about it. Right now he has to take a questionairre/test thing online, then wait to hear from them. Hoping to hear next week sometime, per the recruiter, but with the holidays, who knows. If they do call the next step after that is the all day interview.

This sounds promising. I would encourage him to go with it. And GL! :)

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I don't know if it would balance it out or not, but here is my .02.

 

Health insurance is a HUGE issue.  My son has some special needs and we NEED the insurance to be good.

 

We also need to NOT move.  Again, mostly because of my special needs son.

 

 

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So, he talked to the recruiter yesterday to see if there was any feedback after the phone interview. The recruiter said he'd talked to the company,a nd it was the best feedback about an interview he's ever gotten from them. He basically said he thinks DH is in, as long as he doesn't do anything crazy to mess up the full interview, lol. 

 

So, yay!  My husband is getting more and more excited about it, which is just so awesome to see. Lately every morning is "I don't want to go to work," and I hate hearing that. Oh and a lot of "when I leave one day and have my exit interview.....". I told him, once you start planning for the exit interview it's time to find a new job. So hopefully this is the answer. And his coworker that he really likes will be there, so that would be great. He'd already have a friend :)

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Oh and a lot of "when I leave one day and have my exit interview.....". I told him, once you start planning for the exit interview it's time to find a new job.

My hubby didn't even had an exit interview for his previous company which is an american semicon MNC :lol: He didn't mind of course but found it weird.

 

My hubby is looking around due to boredom but the tech giant he interviewed for gives a not so great vibe. Pay is decent but plenty of grouchy people.

 

My cousin is CISSP certified and working in security and intellectual property rights.

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My DH just left a large corporation.  They have already called him 3 times at home trying to do an exit interview.  They always call during the day when he is at work.  The whole thing kind of confuses me.  One, why call a home number during the day when the person is most likely at work wherever they went and two, why should he bother to respond to constant bothering about this.  It doesn't benefit him in anyway, it's not like they are going to pay him for his time so why should ha put forth the effort. 

 

I just find the whole concept of an exit interview after the employee is gone to be weird.  On their last day of work, sure have an exit interview but why after they have left.  There is zero incentive for them to do it and it wastes a lot of time for a current employee to try to track them down.

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Even if they had to get rid of the no deductible plan, they offer plenty of others. There is one that offers the same benefits we have now, but the premiums are half what we pay now, or less. So still a net win.

 

He had a phone interview today. It was supposed to be 30 minutes but went almost an hour with great conversation. He felt he answered their questions well, and they answered his questions well. More, they were (it seems) very honest. Even saying some things that make the company look bad. My husband was impressed by that, as he had smoke blown up his you know what when interviewing for the current job. He has good ideas (that he shared) on how to address the things the company needs to work on, and experience doing it. He's just happy they admitted it was an issue, as he's sick of places that shove everything under the rug.

 

His coworker got an offer from them, and it included a very very significant signing bonus that would more than make up for the lower salary at least the first year. Although, after talking to my husband you guys are right, it's actually a 9K increase. The LOWEST level of bonus is 18%, that's the minimum for just doing okay. It can go higher. He just wasn't including that because bonuses can change. Which is true.

 

Oh, and after talking with him they agree he's perfect for the first role he looked at, so that's what he is going to apply for. He's really excited about it. Right now he has to take a questionairre/test thing online, then wait to hear from them. Hoping to hear next week sometime, per the recruiter, but with the holidays, who knows. If they do call the next step after that is the all day interview.

Wow, that sounds great! Good luck!

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My DH just left a large corporation.  They have already called him 3 times at home trying to do an exit interview.  They always call during the day when he is at work.  The whole thing kind of confuses me.  One, why call a home number during the day when the person is most likely at work wherever they went and two, why should he bother to respond to constant bothering about this.  It doesn't benefit him in anyway, it's not like they are going to pay him for his time so why should ha put forth the effort. 

 

I just find the whole concept of an exit interview after the employee is gone to be weird.  On their last day of work, sure have an exit interview but why after they have left.  There is zero incentive for them to do it and it wastes a lot of time for a current employee to try to track them down.

 

Yeah, he's always had them the day he left. With someone from HR. 

 

That's weird. 

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Oh, and he found out that the bonus starts at 18%...if you do really well it can be 1.5 or 2x that. So up to 36% bonus. Which explains why the base salary is lower than he had expected. 

 

Now, to see what the out of network health benefits look like. Not that it matters really, but I'm curious. I want one more baby, and the midwife we would use is not in network with anyone. My current insurance has such a high out of network deductible it would barely cover anything. 

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