Is This Job Worth It? Taking a Higher Paying Job with Higher Costs?

annetheman

Hi all, I have a conundrum to sort by next Friday - I'm so sorry about the length in advance...

I've just been offered a great job that is "higher up" in the career ladder that I wish to climb, with amazing office, interesting work and nice people (so far); I have been offered a pay review within 3-6 months and potential to be a senior at what I do within the year - this will mean a pay rise but I don't know how much. They are a small company though (12 people) and can only offer +£5000 more than I get at the moment. They want an answer by 1 Nov 2019.

I currently work for a FTSE 100 company (£44 billion revenue 2018) in an area I find interesting but am struggling to get up the ladder in - little fish in a big pond etc. The company is cutting headcount, and I am almost certainly up for the cut (little fish) and a redundancy package of ~£3000 - but they won't confirm until Jan 2020. I also have an as-yet-confirmed (interview on Monday) prospect of a job in this company's San Francisco branch, where I will definitely be paid more but need to move continent etc.

Side note: my industry very much require "having in-industry experience" for every position in my ladder so stepping out for agency work like this has a risk associated, which I will try to mitigate with my current 4+ years industry experience (adding on newer, higher-level experience albeit in agency)?

I mentioned the amazing office of the new, small company - it is in central London and I am in the suburbs of the shires, having moved to be near FTSE 100 company.

My costs for travel and train station parking per month will be £480+!
I can work from home 2 days a week to make it only £200 per month after month 3; comparatively, my commute costs are currently around £20 per month.
I could live with my dad for months 1-3, too (but don't want to as I am 30+ and have a cat).

Is it worth taking this higher paying but more expensive job that could potentially pay more in the future and could potentially lead to much much higher-paying roles (~£70K+) when I re-enter the big companies?

Please let me know what you think, especially if you've had a similar decison to make, is money really worth factoring in and if so is it worth staying for San Fran possibilitiy - it isn't guaranteed, but then neither is an easy transition back into big companies...

:j

Exodi

There's a lot of numbers flying around your OP but I couldn't make head nor tail of what the difference in your pocket will be.

As a side note, I would not consider a pay 'review' in any calculations as these more often than not just recruitment tools.

steampowered

There is a third option - keep searching for another job, and see what opportunities arise.

With such a small company of only 12 employees, there is no guarantee of long term employment. I wouldn't be paying much attention to the promise of a "pay review" - they are not a big bureaucratic organisation so there is no reason for them not to put their cards on the table. It is ultimately a choice as to whether you want to work for a small company or whether you want to stay in a large company.

annetheman

Right you are - I have now put the numbers in a spreadsheet, taking your advice above and assuming the "pay review" amounts to nothing and... the outlook, apart from when I have to travel to the office every day, isn't as horrifying as I thought.
I have put outgoings at their max possible (e.g. one person is unlikely to spend £400 on groceries but I do love food!).
I should clarify the total amount at the bottom is what I'd have left for anything else after all the above is taken out (taxes, food, bills, travel etc)

In doing this excercise I actually realised even though I will not get to "see" the difference the extra £5k a year will bring, really, due to costs - I am gambling staying in the comfortable, safe big company (well, until redundancy) or a similar big company, entering at the same job level, versus greater responsibility and more experience to enter at a higher level in 2 years or so.

Is this gamble worth it? I am swaying towards yes because staying in your safe, familiar zone and not getting where you want to be because there are risks involved sounds like a surefire way to end up doing the same thing for 20 years - it's just that I'm not getting any younger...

The company has been a team of 10 for 4 years and due to recent expansion, is now 12, soon to be 15. I've checked them out on companies house and revenue trajectory has been good - also they were contracted by my FTSE current company to do various bits (still are now) so I am confident they are viable and sustainable. This is pharma industry, if that helps at all!

Ja7188

The company is cutting headcount, and I am almost certainly up for the cut (little fish) and a redundancy package of ~£3000 - but they won't confirm until Jan 2020.

Where are you getting this figure from?

I also have an as-yet-confirmed (interview on Monday) prospect of a job in this company's San Francisco branch, where I will definitely be paid more but need to move continent etc.

How do you feel about relocating to San Francisco when (presumably) your whole life is in the UK?

Also, can you clarify how many different companies are in play here? You mention the one you currently work for, plus a small one, then another large one - not sure I follow...!

getmore4less

First post you say £5k more your sheet has £7.2k net

theoretica

Do look at living costs in San Francisco in your consideration of whether that is an interesting option - they make London look cheap!

getmore4less

If I had my life again US would be a no brainer, career enhancing with the right companies.

ReadingTim

getmore4less wrote: »

If I had my life again US would be a no brainer, career enhancing with the right companies.

With the right company, anywhere is career enhancing.

With the wrong company.... well, I wouldn't want to be on a US employment contract - holiday allowance, notice periods, the position with regard to health insurance...those who moan about the position in the UK don't realise how good they have it compared to over the pond!

annetheman

Thanks for your replies! A rather big development is that San Francisco has been offered to me now.

The redundancy pay is a guestimate, I actually have no idea how much they'd offer - I've taken my friend's offer after 5 years of £15,000 and conservatively made mine £3000 based on me being here 1.5 years. She is on roughly the same annual salary.

They have no statutory obligation to pay it to me but I know someone else who has been at the company for less than 2 years and was offered redundancy (unfortunately I don't know how much and we won't be paid the same anyhow). But this is now moot because of the offer in the US affiliate.

San Fransisco is a definite option now, I have been offered the job. I have also now looked into how much it costs to live there and yes, the pay is a lot but the costs are ridiculous... I'm flabberghasted. The offer is $115,000 but I can expect to pay about half of my net monthly salary in rent alone there and it is a really big move so I don't really know what to do.

Also, I signed the contract with the small company (they upped their offer) and now I want to change my mind so I have time to think... Haven't handed in my notice in the big company yet because I'm seriously considering San Francisco and the comfort and security of being in a big organisation, but I know I could just be being a coward because actually the work in the small company is much more "up my alley"

I'm more confused now than I was last week - can I re-neg on my contract before I start in Jan 2020? What would YOU do, honest answer?

If it helps, the company in the USA is Genentech. I don't wish to say the name of the small company because stay safe on the webs.

pickledonionspaceraider

OK, take the sums out of it, completely. Don't even think of the wage package, living arrangements, nothing - at all

Lets look at it from another POV - as in quality of LIFE:-

Would your rather live in San Francisco or London? - Don't even think of the job offer, just think of the city. Have you visited San Francisco and London, looked about the local areas?

Which job, suits your skill set the most?

Which job feels nicer in terms of office, set up, friendlier people? Again, have you visited both offices and met both sets of employees?