Pay raise to switch jobs

i think what I said on the AO to someone who was wrestling w an offer bc his current job was bike friendly or something:

a 20% raise to any of us in the donkey pen is an automatic “you are taking this job.” Buy yourself a nice new bike and bank the rest.

(there are other details large and small to consider , i know.)

To follow up: I would require a 100% pay raise. See, that doesn’t help you at all in your decisions.
Others will pipe in: “why 100%?”

  1. I don’t want to leave my job.
  2. 100% would allow me to retire either in half the time remaining or provide a better retirement cushion.
  3. Uncertainty risk premium.
  4. Negotiating starting point.

A better question is: “What inputs and criteria are needed for me to determine my pay raise minimum from my current job?”
And, some posters have already answered this.

That sounds about right to me. I switched to a NYC job and was about to start commuting but then COVID happened… I calculated the COVID non-commuting benefit of ~$600+ on I believe just the train part

It is a NYC job. I didn’t realize that the commuting costs would be so high there, I guess. When you factor in the much higher taxes (not paying state tax in Texas) and the fact that I am working from home(no commuting at all) I feel like the number comes out to about 15 percent, just to offset those two things.

it all depends on where you live. In the city, near your job? Yu can walk. Live near a subway? Take that. Or a bus.

If you are living in NJ or on LI or in the NW suburbs, you are looking at train or bus service. Towns like Hoboken and Jersey City have ferries across the river and also the PATH train. The north part of the Jersey Shore (that’s me) has ferry and train. Lots of the rest of Jersey has train service there.

Where in NYC were you commuting from, and where were you working?

I was commuting from a NJ suburb to downtown NYC, although I’ve since switched jobs.

Wowser. I had no idea.

In Chicago, monthly train tickets might run $100 bucks, plus maybe half of that for parking at the local train stations, plus perhaps some ground transport (buses) at the downtown end of things. So maybe $250 per month at the high end?

Any downtown Chicagoans care to chime in ?

Doesn’t that defeat the purpose of living in NJ to save money?

Part of it also is to get out of that city.
Part of it is to have more personal security.
These things actually cost money, since they are a benefit to those who seek it.
You, again, I can not stress enough, have different values on all these inputs. So, use your own formulas, and figure it out.

15% seems quite low. I don’t think your inputs are correct, but I cannot help with making them more accurate. Check rents in places you might want to live. Check crime rates. Check tip rates for the doorman. Can you sell your car and live without one?
Etc.
Replace your feels with reals.

1 Like

I think objectively it isn’t worth it to move to NYC from a financial perspective.

Depends whether or not I decide it is worth the premium to live there.

To really compensate it would probably need to be another 40-50% I suppose, but that isn’t realistic in my situation given that my current salary is pretty fair.

You are correct though, when considering the increased overall cost of living, 15 percent is too low.

The schools in NJ are a lot better than in NYC, so that’s a big reason.

It’s also a lot nicer to have kids when you have a yard, and a neighborhood, etc. Plus less crime…

Plus I don’t actually commute to NYC

Has crime increased in NYC? It was quite safe when i lived there.

1 Like

Maybe you are rich and can buy ao_fan’s place. I hear it’s nice with a new vanity and whatnot. The neighbors are nice too.

3 Likes

Crime has increased recently, although it’s still better than most other big cities. But nice suburbs still tend to be safer just because big cities tend to have more crime than suburbs.

It’s because Rudy isn’t there to take care of the squeegee men

A lot of Jersey isn’t “nice suburbs”, imho. And NYC has nice and less nice areas, as well. You are certainly more likely to have your car broken into in NYC than in the burbs, though.

The minimum 10% to switch jobs when making an offer is a general assumption, but as seen in this thread some people want way more and some are happy to accept a pay cut.

I was once in an odd situation at work that had me worrying about my short and long term job security for good reason, so I started interviewing. I got an exceptional offer from a competitor that really wanted me, something on the order of 50% raise and a big bonus increase. They basically made me a deal they thought I couldn’t refuse. My company at the time offered me something like 40% raise and guaranteed my next bonus to match the competitors offer regardless of the company bonus. I wound up staying. Stay or go, interviewing at that point was probably the best financial move of my career. Needless to say, I learned that I was way underpaid.

3 Likes

I was offered more, but less than 5% more. Because of the way the exam raises are (higher at potential new company), when I get my ASA (should be next spring/summer), would be at about 10% more, I think. They said they couldn’t share the exact student program but gave me an idea of what the raises in the near future would be.

It definitely doesn’t compensate for the cost of living but because my current salary is pretty good I didn’t think I would get a significantly higher offer elsewhere.

:face_with_raised_eyebrow: