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Salary increase for you to jump ship

  • Last Updated:
  • Dec 14th, 2019 1:34 am
[OP]
Member
Jan 16, 2009
456 posts
228 upvotes
Vancouver

Salary increase for you to jump ship

Just want to have a discussion on what kind of salary increase it would take for you to jump ship to another company. Let's assume similar type of jobs, newer challenges, etc.

Let's say the benefits are similar at both companies.

However, let's say your vacation decreases from 4 weeks to 3 weeks. I would have to value the 1 week vacation as if it's another week's pay.

How would one go about deciding on how much of a salary increase to jump ship?

If the new company is offering very similar salary, should I still move on?

Assume I make the RFD "100k" salary, should I request at least 110k?
23 replies
Deal Fanatic
User avatar
Dec 3, 2009
5776 posts
1093 upvotes
Toronto
No, a 10% increase with a week less vacation isn't enough for me to consider jumping.
Remember to be an RFD-er and NOT a degenerate.
Banned
Aug 23, 2019
897 posts
455 upvotes
no, $100k to $110k would not be worth the switch.... After taxes, you're talking what, $500 a month more? Unless there are more options to move up with the new company, etc.

However, $70k to $80k, I would switch... or $80k to $90k.

Also keep in mind other benefits that have vesting periods... e.g. employee share ownership, defined benefit plans, defined contribution plans.. Usually these benefits can have 1 to 2 years vesting periods before you can join/contribute...

also, tenure is important.. your current employer might let you take your 4 weeks off back to back... your new employer might not even let you take your 3 weeks back to back...

sometimes the devil you know......
Member
User avatar
Nov 15, 2016
354 posts
235 upvotes
Minimum Salary increase, all things being the same is 10%+ for me to move.

Start by negotiating the following for your TC package:
1. Salary (find a number, land on a number between that your comfortable with)
2. Depending on how #1 goes, negotiate Vacation time
3. Stock options
4. Everything else
Deal Addict
Jan 1, 2017
1339 posts
1177 upvotes
What about commute time to work? That would have impact too. Unless more opportunities at the new place 10% increase is not enough. Your opportunity to grow your salary is the greatest when switching companies so I’d be looking for 25-30% increase. Also if you are making $100k+ the vacation is negotiable for these jobs. I guarantee you that you should be able to negotiate it to match the 4 weeks.
Deal Addict
Aug 31, 2017
4186 posts
2084 upvotes
I have come to value flexible work options and few employers offer this due to stone age managers. So for me, it would be:
1) Commute (these costs eat into any monetary raise)
2) Flexible work (includes vacation, sickness, working remotely)
3) Money - 10,000+ minimum (i.e. making under $100K)
4) Benefits

Of course as we continue to age the above order will change.
Deal Fanatic
User avatar
Dec 8, 2007
5084 posts
1260 upvotes
Money is just one part of the equation. I’d consider the role itself and potential for future advancement in that group and organization, management and the person you will be working for, commute time, pension and other benefits, etc. ... and then I’d compare/contrast that to the current role on the same dimensions.
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Deal Fanatic
User avatar
Dec 27, 2009
7180 posts
4362 upvotes
Victoria, BC
Probably about 15-20%, but the 1 week less vacation would be kind of a deal breaker since I only get 3 weeks where I am lol (well, plus about a week over the Christmas shutdown).
Deal Addict
Jun 24, 2015
4528 posts
1336 upvotes
Woodbridge, ON
you dont just lose your vacation entitlement you also lose your seniority too, is it worth it? your now on the bottom of the list and theres probably people with 10-15 years seniority above you
Hi
Deal Fanatic
User avatar
Nov 6, 2010
9162 posts
1295 upvotes
Montreal, QC
It's almost never "only salary"; things like commute, the working environment, challenges/projects, learning opportunities/career advancement and other benefits will almost always play alongside the salary in the decision (hence the term "total compensation package"). Then there's the entire concept of the progressive taxation system where say a 10-20k jump in salary will more or less improve your life depending on what tax bracket you're in.

Therefore, it's almost always case by case I would say. You're asking if say 100k to 110k is your example (or even a similar salary) and asking if you should move, then at that point you definitely need to look at other non-salary factors.
Deal Addict
User avatar
Mar 7, 2007
4113 posts
1609 upvotes
When I was younger... I never paid much attention to the money (maybe that's why I am not rich, LOL).

I changed jobs following opportunities to learn.

Now that I am older, I would probably look for 20% increase. Otherwise, I'll just stay where I am.

Note: 20% increase is almost not realistic, don't know if I could ever get it, but that is what I would be looking for
Deal Fanatic
Jun 7, 2005
8896 posts
687 upvotes
One week vacation pay usually equals to 2% of annual salary.

Assuming you work 7.5 hr/day = 37.5 hrs/week, which is 1,950 hrs per year. Thus, one week pay = 37.5/1950 = 2%
Deal Fanatic
Jun 7, 2005
8896 posts
687 upvotes
Havo wrote: It depends... in some cases, people would rather take a pay cut just to get out of a toxic environment. There are tons of factors to consider.
Agree, can't look at salary alone. Some people would leave a work place with a pay cut for various types of reasons. It also depends on stage of life/career.
Deal Addict
Sep 22, 2013
2280 posts
1425 upvotes
I would need at least a 25% increase to even consider it.
Deal Fanatic
Jun 7, 2005
8896 posts
687 upvotes
I guess it also depends how happy you are with your current job.
Sr. Member
Feb 19, 2017
560 posts
302 upvotes
For me, the % increase grows as my salary goes higher.

At 100K, 15% was enough to get me to move.
At 200K, wanted at least 25%.
At 300K, would likely need a full 100K (33%) to move on.

The reason for this is that the salary curve steepens as one climbs the ladder so it might be better to just stay and try to get the next promo if they aren't paying significantly more.
Last edited by Walch1102 on Dec 12th, 2019 11:37 am, edited 1 time in total.
Member
Oct 5, 2019
231 posts
224 upvotes
Too many other factors. Some people have already talked about. But even with just money it depends on how much you are already making (like someone else said the more you make the bigger increase you’d probably need), but also what the typical raise is where you are. I’ve typically gotten 10-20% a year through raises / promotions, so moving for 10% more makes absolutely no sense.
Deal Fanatic
Jun 7, 2005
8896 posts
687 upvotes
Some people would even make a move with a pay cut, e.g. he/she hates the current job or there is absolutely no growth opportunity in current organization and he/she gets a promotion in title from another organization (e.g. from a staff to a manager position with a lower/same pay in another organization).
Deal Addict
Nov 24, 2004
4119 posts
695 upvotes
Toronto
Not enough info to answer the question. Do you like your current job? What is the advancement path like at NewCo vs OldCo? What about the commute? Benefits? People and culture? Flexibility in hours, WFH, sick time, etc.? Pensions or RRSP matching? ...

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