Job scenerio:

[pikey412]

I was just offered a job I had been interviewing for this morning. Here's the dilemma:


Current job:
-contracted position
-High stress
-impossible deadlines
-long hours
-little to no support from management
-no medical
-no pension
-no vacation
-pay my own taxes
-not 100% stable

but,
-pays decent. $45k take home.

New job:
-low stress
-no deadlines
-good home/work life balance
-Pension
-full medical/dental/vision/tuition etc
-vacation days/paid holidays
-stable

but,
-pays lousy. $27k take home
-could be viewed as a step backwards in my current career path


Recently married, I am the primary breadwinner in the family. Wife doesn't make much.
No kids yet.
Both of us have minimal medical coverage.
I am cranky when I come home from work.
Just moved in to a new home. Luckily, we opted for a smaller home(mortgage) living below our means.
Both vehicles are paid off.
No debt between us (excluding mortgage).
Ample savings backup.
Commute would be about the same with either job.


What would you guys do? My head is telling me I'd be a fool to give up the paycheck I am currently getting. My heart is telling me that life will be better in the long run if I leave now. Current job allows us to live comfortably, but offers no perks and lacks stability. New job has a lot of stability with great benefits, but we would be stretched thin after bills are paid and would not be able to save as aggressively.

[Caoineag]

I know what my household would do in this scenario because we had the equivalent. I told hubby to quit the job, get one that wouldn't lead him to an early death from stress. We are both much happier and we didn't even have the additional perks that the low paying job you are looking at has. Will it take longer to accomplish our financial goals? Certainly. Was it worth every penny given up in salary and bonus? Without a doubt.

[Slug]

$27k? Is this what you negotiated up to you or what you were offered?

[pikey412]

It is what I was offered. I asked if it was negotiable and there really isn't much room.

[cschin4]

My head is telling me I'd be a fool to give up the paycheck

It isn't that simple. I don't think you would be a fool at all. The cost of benefits, retirement, perks and other bennies as well as potential long term stability, security and advancement are worth quite a lot of money. And, if newly married with no health insurance, you are putting yourself at financial risk just by this.
The real issue is your long term goal. Do you want a stable job and bennies and so forth so you can take the time to enjoy your new marriage? And, your contracted work may not last if you have impossible deadlines, etc. Sounds like it could be shaky. But, only you know if this is something workable for the long term.
I would submit that if you are interested in this job, that you go back to the employer and express your interest and enthusiasm and make a case that you would love the job but you believe, based on your experience, that you are worthy of a higher salary. NOW is the perfect time to negotiate. If they can't budge on salary you could negotiate more vacation time or anything else. Think about what you want that would bring that job home for you. And, all they can do is say no. Of course you should be cordial and professional. And, if they say no, you can tell them you would still love to have the job on the current terms. Definately worth a try, you might get some of what you want, and now is the time to negotiate. Take a chance.

[elessar78]

Job A (the one you hate) - you say you pay your own taxes? As in you're a contractor and pay a self-employment tax?

I think the vacation and vacation can make up the difference. Plus if you have more predictable hours you can work a part time job to make up the decreased salary.

[wincrasher]

Sounds like the contract firm is taking advantage of you. When you work on contract, you have to figure in the cost of benefits and time off when you set your rates. Add to that the risk factor (no commitment), and contract work should pay significantly more than a salaried position.

You sound kind of burned out to me, which is not good for a young person. Over time, you'll probably learn as I did that alot of the pressure is self-imposed. It's bad enough that these people are getting you to work for a pittance - it's more shameful to put undo pressure on you to get even more out of you.

The best advice I can give you is to get your family plan together. Do you want to have kids and when. Do you think your relationship is suffering because of the current job. Then pick the job that best suites your plan.

Good luck!

[Scanner]

I'd take the New Job.

The medical insurance on the table is no small commodity nowadays - it probably translates into an extra 5-10K, making the salaries comparable.

Now. . .the "stress factor" - if it's low on the new job, that frees up your mental energy for another job, should you need extra cash on the side - maybe something in the summer or something.

[Scanner]

I'd take the New Job.

The medical insurance on the table is no small commodity nowadays - it probably translates into an extra 5-10K, making the salaries comparable.

Now. . .the "stress factor" - if it's low on the new job, that frees up your mental energy for another job, should you need extra cash on the side - maybe something in the summer or something.

[swanson719]

Take the new job for the benefits. Medical, pension, and stability are worth the $18K difference. Not to mention you'll probably have a better marriage and be a better Dad not being cranky when you get home. Do you really want to have kids with no health coverage? That's a little irresponsible. Shop around to see the rates of health care for about 10 seconds and you'll quickly see the benefits make up for the pay cut. You might not be able to save as aggressively, but you have pension, which makes up for it. If nothing else, what is keeping your wife from going out and getting a higher paying job? No kids = no other responsibilities from the two of you. So what is keeping her from making the 18K you're giving up? Note - you're also lowering your tax bracket with this new job.

Why can't you deliver pizzas a couple nights a week if the extra money is that important? There are jobs out there - many, many jobs. They just usually pay less than most people are willing to accept. If you work a full time job, and then one part time, and the same with your wife, I'm sure you could make up the difference and be happier. Save it up now before you have kids.

[red92s]

Since I'm in the job market as well, I've been pondering what pay differential would be required to make me take a job that I generally disliked versus one that I enjoyed. I think my number is right in the 20% range. Once you factor in the pension, PTO, and medical I think you'd be within 20% of the higher paying job.

But, that's just me.

[EEinNJ]

You need option C, a "direct" job that pays better- and you can command that in part because of what you're earning now. There is a differential due to benefits cost, but not as much as you're talking about.

I've spent half my career at contract jobs. There have been "job shoppers" in engineering long before the current trend of replacing employees with contractors. The money's good, the work is often harder and less stable. No promotions, often no raises. Add in periods of unemployment and the extra money isn't an incentive, it's a necessity.
There are intangible benefits- flexibility, easier to change jobs, not getting mixed up in company politics, free time. But,if you have stress and long hours, you're missing out on that.

When people asked, I used to say a good contract job is better than a crappy direct job, a good direct job is better than a crappy contract job. Early in my career I left a low paying job for a much better paying contract job. About 2-3 years and a couple of jobs later I landed a high paying senior level position. That is, until I got laid off and had to go back to a contract job