Basic salary vs total compensation
Discussion
I have a £55k basic, £6k car allowance, £4.5k bonus (pretty much guaranteed), 5% pension + NI savings, all together it comes to £70k.
I'm fairly happy with where I work, it's typically not stressful, but it's definitely not a utopia. Future career or salary progression is minimal.
I've now been offered a role at another company with a £70k basic salary, and I'm wondering, would most people consider this a pay rise, even if my total remuneration for the year is no different to what I earn now?
I can see the positive side of getting my "full pay" every month, whereas my bonus at the moment is paid quarterly. On the flip side there's obviously risk involved changing jobs, for minimal extra income.
OK, there are pension contributions of 5%, so that's £3500 extra, but it's hardly setting the world alight. There is also a 10% bonus, but I don't know the details of the scheme, and I'm not a chargeable resource, so it's unlikely to be based on my utilisation. In any case, I take bonuses with a pinch of salt.
So what do my fellow PHers think? Would you class the new role as an improvement in pay, or from a monetary perspective, stay where you are?
I'm fairly happy with where I work, it's typically not stressful, but it's definitely not a utopia. Future career or salary progression is minimal.
I've now been offered a role at another company with a £70k basic salary, and I'm wondering, would most people consider this a pay rise, even if my total remuneration for the year is no different to what I earn now?
I can see the positive side of getting my "full pay" every month, whereas my bonus at the moment is paid quarterly. On the flip side there's obviously risk involved changing jobs, for minimal extra income.
OK, there are pension contributions of 5%, so that's £3500 extra, but it's hardly setting the world alight. There is also a 10% bonus, but I don't know the details of the scheme, and I'm not a chargeable resource, so it's unlikely to be based on my utilisation. In any case, I take bonuses with a pinch of salt.
So what do my fellow PHers think? Would you class the new role as an improvement in pay, or from a monetary perspective, stay where you are?
Simply, yes.
I have worked for organisations where the bonus, car allowance and other benefits have slowly evaporated due to "harmonisation of benefits" across the organisation. Sure, you go through the hoops of consultation etc and you might get a token one off bump as compensation but the only alternative is to leave if you don't accept the changes.
Take it all into account when leaving for pastures new, including the potential to improve and advance. But don't consider the existing benefits as the sole reason to stay as they may well just disappear in the not too distant future.
I have worked for organisations where the bonus, car allowance and other benefits have slowly evaporated due to "harmonisation of benefits" across the organisation. Sure, you go through the hoops of consultation etc and you might get a token one off bump as compensation but the only alternative is to leave if you don't accept the changes.
Take it all into account when leaving for pastures new, including the potential to improve and advance. But don't consider the existing benefits as the sole reason to stay as they may well just disappear in the not too distant future.
Is the car allowance an inducement or do you need a car as part of your work? If the latter, then you can discount this from your overall package as it's simply a tool that the company provides you. If the former, would you spend £6k a year buying your own car?
I would look the basic. The amount of money a company pays you is an indication of the value they place in you. The new company values you £15k more than your current employer.
Plus, it also indicates to other employers what you may be worth to them later on. So, in three or four years time, jumping to a £80K or £90k position is realistic from a £70k starting point. Not so much from a £55k one.
I would look the basic. The amount of money a company pays you is an indication of the value they place in you. The new company values you £15k more than your current employer.
Plus, it also indicates to other employers what you may be worth to them later on. So, in three or four years time, jumping to a £80K or £90k position is realistic from a £70k starting point. Not so much from a £55k one.
Exactly the same type of job , chances of further promotion there , company stability etc are all other considerations and whether the new job actually “ excites “ you are possibly all worth consideration.
But £10k more is £10k more.
One of my staff defected for £10k more and that’s after I increased her salary to keep her so for her age and experience the new company was paying “ too much “ for her.
It took her 2 weeks to discover that greener grass was in fact not.
But £10k more is £10k more.
One of my staff defected for £10k more and that’s after I increased her salary to keep her so for her age and experience the new company was paying “ too much “ for her.
It took her 2 weeks to discover that greener grass was in fact not.
dibblecorse said:
Of course its a raise, the new total comp is 70k plus 5% of 70k pension so another 3500 plus a 10% bonus, and thats again of the 70k, so total potential comp is now 80,500 and far more is guaranteed.
Thanks for the comment, but as per my original post, I have no idea how the bonus operates, so I'm reluctant to count it. I've had bonuses in previous jobs that were advertised as paying out thousands, yet we all got £15-30 (yes, that's fifteen to thirty pounds) consistently. gmasterfunk said:
What's a 2% increase in salary worth in both situations....
Thats a good way to look at it. StevieBee said:
Is the car allowance an inducement or do you need a car as part of your work? If the latter, then you can discount this from your overall package as it's simply a tool that the company provides you. If the former, would you spend £6k a year buying your own car?
I would look the basic. The amount of money a company pays you is an indication of the value they place in you. The new company values you £15k more than your current employer.
Plus, it also indicates to other employers what you may be worth to them later on. So, in three or four years time, jumping to a £80K or £90k position is realistic from a £70k starting point. Not so much from a £55k one.
I don't travel as part of my role, so the car allowance is really a way to pay me more without having to pay pension contributions on it.I would look the basic. The amount of money a company pays you is an indication of the value they place in you. The new company values you £15k more than your current employer.
Plus, it also indicates to other employers what you may be worth to them later on. So, in three or four years time, jumping to a £80K or £90k position is realistic from a £70k starting point. Not so much from a £55k one.
Really good point of view on highlighting how the company (and future employers) view the value of the role/employee.
A big pay rise is a big pay rise at the end of the day..
Is the new job in the same sector doing the same role?
Can you ask for the car allowance as a top up to your salary instead?
I've always found individuals who i know/worked with previously to become less motivated when on a high basic rather than a slightly lower basic without a bonus. (Not saying that's you OP).
Is the new job in the same sector doing the same role?
Can you ask for the car allowance as a top up to your salary instead?
I've always found individuals who i know/worked with previously to become less motivated when on a high basic rather than a slightly lower basic without a bonus. (Not saying that's you OP).
The only few things I would add to the conversation from see how the same sector/industry works is if a company pays 10% than your current role will they expect 10% more extra work? If no, can’t see why you wouldn’t do the move but you end up do more than 10% extra work there leads the problem.
Money isn’t everything, I’ve been in thankfully only one job that I truly didn’t like and felt trapped because I couldn’t see a job move that would pay the same/almost the same but a lot more enjoyable work/life balance.
How is the rest of the industry you are in doing in the current climate and how is how company doing? If both are great, then why aren’t they paying what you are worth to keep you? I think/find companies will pay you the minimum amount that they can to keep you even if they would have to spend extra on recruitment fees to find a replacement
Money isn’t everything, I’ve been in thankfully only one job that I truly didn’t like and felt trapped because I couldn’t see a job move that would pay the same/almost the same but a lot more enjoyable work/life balance.
How is the rest of the industry you are in doing in the current climate and how is how company doing? If both are great, then why aren’t they paying what you are worth to keep you? I think/find companies will pay you the minimum amount that they can to keep you even if they would have to spend extra on recruitment fees to find a replacement
mattvanders said:
The only few things I would add to the conversation from see how the same sector/industry works is if a company pays 10% than your current role will they expect 10% more extra work? If no, can’t see why you wouldn’t do the move but you end up do more than 10% extra work there leads the problem.
Money isn’t everything, I’ve been in thankfully only one job that I truly didn’t like and felt trapped because I couldn’t see a job move that would pay the same/almost the same but a lot more enjoyable work/life balance.
How is the rest of the industry you are in doing in the current climate and how is how company doing? If both are great, then why aren’t they paying what you are worth to keep you? I think/find companies will pay you the minimum amount that they can to keep you even if they would have to spend extra on recruitment fees to find a replacement
So this is a really good point, and something I'm very conscious of. Money isn’t everything, I’ve been in thankfully only one job that I truly didn’t like and felt trapped because I couldn’t see a job move that would pay the same/almost the same but a lot more enjoyable work/life balance.
How is the rest of the industry you are in doing in the current climate and how is how company doing? If both are great, then why aren’t they paying what you are worth to keep you? I think/find companies will pay you the minimum amount that they can to keep you even if they would have to spend extra on recruitment fees to find a replacement
I implement software for the vendor I work for, and the new role would be implementing the same software, but in-house, for a large company. With all the sites involved, there's easily enough work to keep me engaged for a few years.
But as I said in my original post, my current job is not stressful at all (90% of the time). In fact, I have it very cushy, and I can complete most of my day's work in half a day. As I write this, it's now coming up to lunchtime, and I've got a few more emails to send, and then I'm out of work for the day.
Sure I'll need to keep my phone handy in case it rings, but it's an easy life. Some people would think I am mad to consider moving to a place that might make me work at 125% capacity, but despite my current lack of work, I am very much driven.
I also like nice things in life, and if I want a fancy car or a first-class flight, I need to get my s
t together and continue to get pay rises. I'd much rather be out there grafting, getting my salary up, than sat twiddling my thumbs on £70k.Reads a bit contradictory to me but I think your last post implies you are keen on earning more money as you are driven but don’t think the additional money being offered is enough.
So I guess options are a) try and negotiate more salary for the new job b) try and negotiate more money for your existing job ( clearly might need to be a tad careful on this ) or c) look for another new job paying more like the money you want to earn.
Good luck for any of these you choose.
So I guess options are a) try and negotiate more salary for the new job b) try and negotiate more money for your existing job ( clearly might need to be a tad careful on this ) or c) look for another new job paying more like the money you want to earn.
Good luck for any of these you choose.
Apologies if I've waffled a bit, but yes, your interpretation is correct. I'm more than happy to slog my guts out if it pays, it's what I've done historically and it has fortunately worked out OK.
I'm speaking with the recruiter to see if there's any room to bump it up, as they knew at the start of the interview process that I was wanting £80k. If they meet me halfway at £75k then I'll do it.
I'm speaking with the recruiter to see if there's any room to bump it up, as they knew at the start of the interview process that I was wanting £80k. If they meet me halfway at £75k then I'll do it.
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