Short and sweet without going into specific details.

 

A friend worked for a company for 2.5 years and recently changed jobs for about a 10% raise and into a field that he really loves and for a well established company. After working six weeks for this company, he has been approached by another lesser known company for about a 50% raise and would be doing close to the same type of work. Same geographical area, no cost of living increase and no roots yet.

 

Should he take it?

I'd go for the move

does he know this co, ?

 

is he guaranteed 40 hr week ?

 

will their be work year round ?

 

these are questions he will need answered.

I have had friends do that with start-ups and some of them end up working and not getting paid on time, and in some cases, at all. I guess it depends what he thinks the prospects are for the new company, and what his ability might be to weather through possible initial instability (i.e. no income). 50% more only means something if the check actually arrives.

50% raise for the same work? Unless there is some issue with the new company, then he should go for it.

All good points. I'll pass the info on to him.

 

 

Another thing to ask, will this job be salary, if so he may end up working 70-75 hr weeks..

 

I know someone who did that doubled his pay but also doubled his time..

depends on how much he is willing to gamble... you have stability VS the unknown.... for me personally.. with the way jobs are now.. I would stick with the operation that is most reliable providing they are paying me what I need to make... and since he already was able to net a %10 raise.. and the company is established.. as I said.. I would stick with that.. but just my 2 cents..

Id go with an employment agreement, a strng one with a LONG payment seperation clause.

depends on how much he is willing to gamble... you have stability VS the unknown.... for me personally.. with the way jobs are now.. I would stick with the operation that is most reliable providing they are paying me what I need to make... and since he already was able to net a %10 raise.. and the company is established.. as I said.. I would stick with that.. but just my 2 cents..

 

I agree! in this economy, stability is kewy.

Id go with an employment agreement, a strng one with a LONG payment seperation clause.

 

Yes, if he's moving to a start-up or more risky venture he needs to get a contract. At will employment in those companies is a recipe for the poor house.

I'd tread cautiously. I would definately look into it, but really do the homework. Perhaps a term contract for employment with reasonable conditions (like you have to show up for work,etc) would be in order.

 

There's gotta be a reason the other company is paying 50% more... it could be your friend is the best at what he does, and they are recruiting him hardcore for their long term strategy, in that case excellent.

 

Or it could be something more sinister, like they need a good guy at whatever he does for some big project/contract/etc, then once that's over with the "its been great having you with the company, but times have changed, etc...go find a new job" speech comes out.

 

One thing I have learned is to not burn bridges. Its a small world out there, and if you get known as a job-jumper or disloyal, your hire-ability will really suffer when the time comes you really need a job.

How's the benefits? That's one thing I'd definitely consider too!

Personally, I would stick with the well established company. In these economic times, job security and benefits are more important than "quick money" from a larger salary from a smaller company.

First of all, why is the company giving him a 50% move? and 50% move as in...

 

He is making $100k and they are offering $150k or he is making 40k and they are offering 60k?

 

Before he moves, i would want to make sure of.

 

1. is the company still going to be around in a year or two?

2. Did he sign any non-compete, non solicit agreements when he took his current position.

First of all, why is the company giving him a 50% move? and 50% move as in... 50% raise with different company. No moving.

 

He is making $100k and they are offering $150k or he is making 40k and they are offering 60k? $80K to $120K

 

Before he moves, i would want to make sure of.

 

1. is the company still going to be around in a year or two? Not sure

2. Did he sign any non-compete, non solicit agreements when he took his current position. Hmm, Not sure

Some things for him to think about.

 

Just because a company is offering big money, does not mean he should take it.

 

Also... the number one mistake people make is not including the benefits into the compensation. Example.

 

Does one company or the other pay for medical insurance? if he has a family, that is around $1,000 a month.

Profit sharing? 401k matches? Section 125? Executive comp? Deferred comp? Options?

 

Give you a story, my brother, was making around 80k a few companies ago. He was recruited by another company to be their CFO. got a great bump up in pay to around 110k. He started... 5 months later, company went under. I have a feeling he was hired to replace someone else who was getting paid even more, and company went bust anyhoo.

If he is currently making $80k.....I think that is substantial enough that the current employment would be best for him. I don't know how old he is, but $80k a year until he retires is MUCH better than $120k a year for a little while until the company flops in 2 years.

Excellent points.

 

Hey Mods, can I get a lock on this topic now. I think he has enough info to make a clear decision.

 

I'll do an update when he makes up his mind.

UPDATE:

 

My friend decided to stay with the present company. As it turned out, he applied for a position within and was accepted. The position turned out to be at "The Gathering Place" and he received a raise. Lucky fella. Also heard he might be receiving an award for something. He steps in it everywhere he goes.

Oahu is great to visit---once, maybe twice, but I wouldn't want to live there. I spent a good chunk of 2003-& 2004 going there to work for various Army projects, I got SOOO sick of the traffic and Waikiki, ended up hotelling it out of Pearl City and the N. Shore. ObGun--Gun Laws are pretty bad in Hawaii, from what I have read---

What the difference between a "professional" opinion and a regular opinion? I didn't know one could be a professional in opinions.