Considering a Private Sector Job with Double Salary During Economic Slowdown – Is It Worth the Risk?

I am working in a government concern currently. I have been offered a job in one of the leading organizations in the private sector. The offered salary is more than double of my current salary. I am in a dilemma. Will it be safe to change jobs during this economic slowdown? All the people close to me are advising me against this. What I wonder is that if a company is willing to pay me that much when the economy on the whole is looking down, surely the job there won't be as "insecure". What should I do?

P.S. - I am an engineer in the power sector.

Hi,

Jump to the private sector. You can earn an "X" amount by working in the private sector for a lesser period. There might not be job security, but you will surely get another job.

-- Shash

Dear friend,

Job security is very important. Currently, you are working in a Government Concern Company where job security is available. Merely doubling your salary will not guarantee job security in the private sector. However, your mind is considering accepting the higher-paying job due to the salary hike. I advise you not to quit your current Government Concern Company job. Instead, you could consider taking a lien from your company for a period of one year (subject to renewal year by year) and joining the private sector job. This way, your rights to return to your original job will be retained. If anything unfavorable happens, you can repatriate back to your original job where your lien was retained. Best of luck.

Suri Babu Komakula

"I am working in a government concern currently. I have been offered a job in one of the leading organizations in the private sector. The offered salary is more than double my current salary. I am in a dilemma. Will it be safe to change jobs during this economic slowdown? All the people close to me are advising against this. What I wonder is that if a company is willing to pay me that much when the economy, on the whole, is looking down, surely the job there won't be as 'insecure.' What should I do?

P.S. - I am an engineer in the power sector."

It's all about taking calculated risks today. You can make a thorough research about the company if you have doubts. Getting opportunities today, and that too during this slowdown, is rare, and one should capitalize on it.

If you are an ambitious person and want to reach somewhere, then you have to take calculated risks. Companies are not foolish to pay someone a high scale when the economy is at its slowest peak.

So go ahead and grab it after you have made your research and background check of the company. All the best!

Dear Blue,

You need to first be very clear in your mind whether job security is important or the double salary. Think about it and follow your heart. Whatever happens, be ready to face it.

Regards,
Sonali

Hi,

You have been rightly advised to make an objective assessment. Don't be lured by the salary offered by the private sector. Remember, the salary is for ONE MONTH. You may not be there in the following month. The 'job security' is very important, which you must not ignore. However, if you are financially stable and confident about yourself, and the organization you are joining is well-run professionally, you may take the plunge.

Another factor you must consider is whether you are happy with your current job or not. If you are not, this could also be the compelling factor to leave your job.

Wishing you all the best,

Cyril

With your knowledge and background, you might be feeling that the private sector might be the right place to get your work recognized. Mostly, it does not happen so; furthermore, in the case of further reduction in manpower due to the current global scenario, you might be in the first list of employees to be terminated, based on your tenure with your private company. Government employment really pays you back, especially after your retirement, with assured monthly pension/income. The choice is yours, but I suppose you would be wise enough.

Best wishes, A V Ramanan :)

Please stick with the government sector. Despite feeling that you may receive better recognition in the private sector due to your age and abilities, this expectation may not always be met. Additionally, you could be among the first employees to be laid off given the current global scenario.

Government employment provides financial security in your old age, ensuring support for you and your family. I trust you will make a wise decision.

Best wishes, A V Ramanan

It's nice that you have ultimately landed a private job with a considerable hike. It is going to be very challenging and high exposure, providing an opportunity, I feel. If a company offers such a good hike, they must have plans to provide you with challenging experiences ahead. I would say it is a golden opportunity.

The global slowdown does not have a significant impact on India, as India has a strong consumer base, and things will continue, albeit at a slower pace. Working in a challenging atmosphere can lead to gaining a large amount of experience and exposure in a short period. You can reach your ambitions to the highest level, which you may not have imagined before in your lifetime. Go ahead.

Sampathkumar

"I am working in a government organization currently. I have been offered a job in one of the leading organizations in the private sector. The offered salary is more than double my current salary. I am in a dilemma. Will it be safe to change jobs during this economic slowdown? Everyone close to me is advising against it. I wonder if a company is willing to pay me that much when the economy, on the whole, is declining, the job there won't be as 'insecure.' What should I do?

P.S. - I am an engineer in the power sector."

As per my view, it would be better not to change jobs. Please provide details about your current job responsibilities so that we can offer you more specific advice.

Dear Shash,

In my point of view, you should switch your job if you are very sure about job security. Don't think about the World Economic crisis, as many companies are performing better than ever in these crisis days. For example, my company gained the highest ever profit this year. We are facing (here in Pakistan) an energy crisis like Electricity and Gas, and you know how both are important for the textile sector. You can't run your company even for one day without Gas, but again due to dollar fluctuation, we are able to achieve this landmark. We are continuously hiring new staff for our new projects. So, being an Engineer, you should never hesitate to switch as there are many opportunities for engineers in your country and Gulf as well.

Regards,
Sagheer
Niagara Mills Limited
Faisalabad, Pakistan
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Hi, I'm Parul from Chandigarh. I want to suggest that you check your in-hand package because nowadays companies make a lot of deductions. There may be some loophole to it.

What will be your reaction if you are offered a job overseas with 5 times your current salary and all family status? 😄

The government sector is heaven for non-performing and lazy employees who are not worth in the market. 😜

Those who perform and are confident of their competencies can sell their skills and competencies. Only the sky is the limit in the private sector.

I worked as the youngest manager in PSU at the age of 34 but left PSU and am now working overseas with a world leader. I have traveled across the world, visiting one continent every year during my annual vacation, earning 6 times my present incumbent position in the same PSU.

What should be the lesson you decide?

Change is for good and is always good. Life never ends outside government, but there is a dark tunnel for performers in the government sector. 😜

Badlu

I would advise, please don't change your job; stick to government employment. You are lucky to have a government job, so don't take the wrong step. Don't run after money; job security is a major challenge nowadays in the private sector. Therefore, don't think twice about it; don't leave your government job.

Hello to all,

Thank you for all the input. In India, the power sector (generation/transmission) has recently been opened to private players. Many giants in the private industries are now undertaking projects in the power sector. They are making efforts to attract engineers working in the government sector by offering good salary hikes. Overall, the demand for power in the country is increasing every year. This sector is poised to experience significant growth in the coming years as electricity is fundamental to human life.

I am young and eager to dedicate all my efforts to building a career. I also see this opportunity as a chance for me to learn and develop. Government offices still operate at a slow pace. I am excited about this opportunity, but the main advice I receive is to be cautious during this economic slowdown period. I wonder if organizations hiring individuals during an economic downturn by offering good compensation would not lay them off when the economy rebounds.

Dear Blue.quill,

There is no term like job security or job insecurity if you are a performing candidate. No company, whether private or government, would ever ask a high performer to leave, albeit the entire organization is closed down, which might not be the case for you. If you have confidence in yourself, then go ahead and grab the opportunity. The only thing I would caution you about is cultural fitment, which you may find difficult when you switch from government to private. If you think you can adjust to the pressures of a private organization, then don't hesitate and move ahead. All well, you will see yourself at much greater heights in three years to come than what you could achieve in a government job.

Regards,
Dabs

Dear Mr.,

As an engineer in the power sector, you have ample opportunities to grow within your government organization, as the government is making all possible moves to expand its production in the power sector. Now, at this juncture, with a downward trend in the economy, some good private sector companies are trying to acquire resources from the government sector. I am not sure if this would benefit you in the long run, as short-term returns might seem promising. Please analyze the situation thoroughly, considering the pros and cons, and make your decision accordingly.

Thank you.

Again, I repeat my suggestion, and the same is expressed by Mr. P. Ramakrishnan: you have to analyze before you make a decision. I emphasize that the government would always be better with their system of evaluation and promotion, considering their periodic pay commission. For example, LIC has a major market share in the insurance sector. Why? Because of their already established process flow. Consider the benefits for yourself and your family from the government sector. As Mr. Ramakrishnan rightly said, the private sector might attract people from the government sector and expect you to facilitate their paperwork in various government offices (often in an unethical manner). It might seem appealing for the next few years. A similar scenario occurred in the telecommunication sector, yet MTNL and BSNL still dominate the market. However, at the end of the day, a government job is the best of all.

So, stick on, my dear friend.

Regards, A. V. Ramanan :)

Hi,

Changing a job brings in a fresh perspective and also brings in opportunities to prove yourself. It is a new life... look at it this way... What's the worst that can happen? Would my mind stop functioning or would I get several opportunities for appreciation when a job is well done? Power sector is not an area that will phase out... Power runs everything else... that's reason enough to not have self-doubt.

Short-term economic changes keep happening. It is a dynamic world we live in... the basis of the power sector is that the demand never falls. It may change approach, direction, or bring in new ideas... If you are adventurous and want to make a difference, it will help. The private sector allows you to dare to take a chance... the call eventually is entirely yours. Just listen to your inner voice... keep in mind... your call is entirely your call. Everyone has a choice. Not making a choice, I am to understand is also a choice.

Take care and good luck!

Sandy

What amount are they willing to pay you in the private sector? What are you currently getting in your present job?

Hi Blue,

I hope you are aware of the financial crisis faced by Lehman Brothers, a 200-year-old company that filed for bankruptcy unexpectedly. Did you know that they offered huge salaries to both freshers and experienced individuals? Around 2500 people were laid off in India alone, causing a significant impact on those who had recently joined, having left their previous employer for Lehman Brothers.

My sincere advice would be to consider sticking with a PSU for the time being, perhaps until the world emerges from this crisis. Based on your information, many private companies are venturing into the power sector, such as Reliance, which offers good salaries. So, there is no need to worry about missing out on opportunities for higher salaries in the private sector. Think carefully and make the best decision.

- Gowtam

Hello to all,

Thanks for all the input. In India, the power sector (generation/transmission) has recently been opened up to private players. Many industry giants are now undertaking projects in the power sector, aiming to attract engineers from the government sector by offering significant salary increases. The demand for power in the country is increasing every year, making this sector poised for substantial growth in the coming years, as electricity forms the foundation of human life.

I am young and eager to dedicate all my efforts to building a career. This offer seems like a great opportunity for me to learn and develop. While I am excited about this prospect, I am mindful of the economic slowdown period that everyone is cautioning me about. I wonder if organizations hiring individuals during an economic downturn with attractive salaries would still lay them off when the economy recovers.

- Blue Quill

Hi,

Just make sure that you are on permanent rolls, not on contract, and try to make the terms and conditions favorable for yourself. The organization knows that you have a secure job in hand, so you are in a better position to demand what you want.

Also, read between the lines in your offer letter. Tell the organization to give you written assurance of job security, i.e. the maximum possible notice period from their side in case of termination. Say that this is because you do not want to take a risk in these market situations.

Also, rethink all emoluments in your government job which may not be there in the private sector job. For example, the proposed longer maternity leave (if you are female), government accommodation, etc.

Find out about the organization's financial health in present times. If it presents a sorry picture, back out!

I am not an HR professional. Just listed down the things I would have done if I were in your place.

Thanks,
Shikha

Government concern, I think, will not allow retaining a lien in this case as it is a private company. So, another option is to take leave for a time to be decided by you and test the waters. If it's okay, stay on; if not, come back. However, job security is not an issue in these times, even in the private sector, especially when you are an engineer. If money and challenge matter, go for it. If stability and long-term security are priorities, then stay put.

Regards,
Indranil Banerjee

Mr. Bluebill,

I am a fresher in HR, but I have a lot of experience in social life, jobs, etc.

Dear, I advise you not to change the Govt. job. Money is not everything. Dignity is also mandatory and a motivation tool for this. I think after some time, you will be in a high position like JE, SE, SDO, etc. So, think and think and think, then make a decision.

I am an MBA in HR, and we learned to make decisions immediately, but this is a very big decision. It is very tough to get a govt job in this Govt job crisis.

Aage aapki marji..

Dear Friend,

Please consider sticking with the government job. I understand that the salary package may be more lucrative in private companies, but remember, government jobs offer stability and other benefits. It may be easier to find a private job, but a government job provides security and long-term prospects.

So, please refrain from making any sudden decisions to switch jobs at the moment.

All the best,
Dheer

Hello Blue,

It depends on what you want - job security or high pay? The main thing that matters is whether you are getting job satisfaction or not. If you are satisfied with your job, then don't quit. Otherwise, there are other alternatives you can opt for.

Hey,

Either left or right - peaceful mind and job with limited salary, etc., or handsome salary with a pinch of pressures, quick growth, etc. - choose on your own? All the best!

Madan

Hi,

A SWOT analysis of both jobs would provide you with a clear picture.

Regards,
K. Bhupesh

Moreover, the power sector is bound to grow because of a shortfall by government electricity boards. Please consider the following aspects:

1. Do you have job dissatisfaction in a government job?
2. Age bracket - If you are below 30 and confident in your capabilities, the private sector could be rewarding.
3. However, keep in mind that you will have less time with your family members and fewer privileges such as leave, etc.
4. Regarding the package - Weigh the financial aspect of subsidized housing, which you might have in a central locality provided by the government.

Best wishes,
JP

I agree with Cyril's suggestion. Job security is very much important in the present context. Hence, before leaving the current job, think rationally.

Dear Friend,

There is a lot of opportunity in this slow down of the economy too. If someone offered you double salary, certainly he has assessed your capacity and ability. But please remember that in a private organization, it is always a challenging field. If you perform, there is a lot of scope but vice versa. In your CV, what you had written down, you have to know all the things. You know your ability and capacity very well. If you have that much confidence that you can do your assigned job, I will advise you, please change your job, don't be afraid of the slow down of the economy. Please remember you have been called to fill the vacancy, then where is the question for fear, only you have to perform.

Personally, I advise you to join a new company but if you are more conscious of job security, please don't join.

Thanks, Pramod

Leaving your government job only for a higher salary is not always the best decision. If your current job offers a lower salary, consider the long-term benefits it may provide. Think about where you see yourself in the next 4 to 5 years. Compare the advantages of your private sector job that may offer immediate financial gains. Ultimately, the decision is yours. Best of luck to you.

Hi,

I think you should not jump to the private sector for money's sake. I feel job security is very important. Moreover, think once whether you can adjust to the private sector culture or not. Ultimately, money is not the only thing you should concentrate on; there is something more than that, and that's satisfaction. 😛

So, don't think too much. Stick to the job that is very secure. You are thinking a lot before joining a company about your existence. Just think about how the situation would be after joining... always thinking... pressure, stress, strain... Do you need all those? Then the private sector is best. But I prefer a government job.

Thanks,
Kiran Kumar

Power sector expertise and experience are in huge demand. If you are not lazy or inefficient and want to grow fast, quit your government job. Your increments are only 20% of market rates for increments, and the growth rate is 5% of the market in the government sector. In the government, you become a manager after attaining 20 years of service, whereas in the private sector, promotions and pay are performance-based, and you can progress faster than in the government sector.

Hi,

This is an important decision which only you can make based on you. Just analyze the pros and cons of the offer and decide accordingly.

Regards,
Anitha

Hi,

Although most of the points have been covered by other senior members, do a CBA in terms of CTC in both companies:

- There could be lots of perks/benefits provided in government companies which are not counted in CTC.
- Almost the entire CTC would be fixed with no variable component (I believe) in the government company.
- There could be a lot of tax advantages/shields due to non-cash benefits in the government sector.
- Is everything in a private company CTC fixed? How much is variable?
- How is your tax liability on both CTCs?

After considering all of this, if you are confident, then only join.

Thanks,
Verma HR

It is highly dangerous for one to change an existing job to another, especially with a private one. You may get a good salary, but not job satisfaction or security. Wait and watch. Keep a vigilant eye on the power sector and then only decide.

With best regards,
Manoj Gupta
Dy. Mgr - Marketing

Suggestions given by "elpushparaj" seem good. However, in general, if you are in a permanent role in a government job as an engineer in the power sector, don't leave it for a double salary. Make your mind happy and be adjustable with your existing salary. There are many other sources for income in a government job in the future, along with your promotions.

Regards,
Gaurav Arora

I am currently working in a government concern. I have been offered a job in one of the leading organizations in the private sector. The offered salary is more than double my current salary. I am in a dilemma. Will it be safe to change jobs during this economic slowdown? Everyone close to me is advising against it. What I wonder is if a company is willing to pay me that much when the economy as a whole is looking down, surely the job there won't be as "insecure." What should I do?

P.S. - I am an engineer in the power sector.

Do not quit your government job. If you have the requisite experience, you can take up to 6 years of unpaid leave and still retain your job. I know several people who have done that. This will allow you to sample life in the private sector before making a decision. Try it for 2 years first, extend your unpaid leave if you want to continue, or return to the power sector.

In the private sector, you will not have many ancillary benefits that you receive in the public sector that cannot be monetized. Furthermore, the pressure to perform is much higher than in the public sector, and you will need to cope up, especially if you have been in the public sector for a long time.

So, don't quit. Take the unpaid sabbatical offered and ease your mind by trying out the private sector instead of giving yourself a headache.

Also, consider the 6PC pay hikes and various incentives for performing sectors. Again, don't quit. Based on some of the other responses, you may be asked to navigate through various government offices, and if you cannot engage in minor illegal activities along the way, your bosses will not be happy. In the government sector, it is the opposite. You don't need to navigate through paperwork - people will come to you for paperwork. Do you get the point?

Since I have had experience working under both public sector and private sector organizations, I would suggest that you compare the total package of money and working conditions. By working conditions, I mean freedom to work, freedom to think, freedom to opine, freedom to learn, and freedom to enjoy life. I will give you the following quotation to ease your decision-making:

"With money you can buy a house,
But not a home.
With money you can buy a clock,
But not time.
With money you can buy a bed,
But not sleep.
With money you can buy a book,
But not knowledge.
With money you can buy a doctor,
But not good health.
With money you can buy a position,
But not respect.
With money you can buy blood,
But not life.
With money you can buy sex,
But not love."

- A Chinese Proverb

Hi,

Don't leave your current job now; instead, take medical leave for two months from your government organization. Then, consider moving to a new position in the private sector. Explore your attachment with that company; you can grow professionally and potentially transition to other private sectors with a higher salary. After that, decide whether to continue with your government organization or switch to the private sector.

Private Sector: Work diligently to rise to the top. Advantages include a competitive salary, knowledge expansion, valuable experience, technical expertise, smart work ethic, dealing with office politics, and most importantly, personal growth – remember, no pain, no gain! However, job security might be a concern.

Government Sector: You are familiar with the pros and cons of working in this sector.

Regards,
Parthasarathy
9884962576

If you are confident in your abilities and deliverables, please go ahead. You will prosper. Please evaluate the package carefully; is it really double? Evaluate very carefully if there are ESOPs.

All the best.

Hi,

I too agree with Mr. Suri Babu Komakul. You shouldn't leave your present job. Rather, take a long leave, go there, work for some years, earn well, and then come back to rejoin the government job. It would be fair for you, I believe.

Jeni

Hello all, and thanks for your valuable inputs.

I have been doing a lot of soul-searching these last few days as to what I really want. This seems to be one of the toughest decisions in my life. True, my current government job gives me all the peace and time one can possibly want. The flip side of it is poor growth, pathetic work culture, having to deal with incompetent colleagues and staff, etc. When I think of the private sector, I can envision faster growth, a challenging work environment, opportunities to learn, etc. But then in the private sector, there would be a constant pressure to perform and deliver the goods. A higher degree of accountability leading to lesser time for oneself. And obviously, the salary would be double, growing by leaps and bounds for those who perform well.

I am clearly confused. I want to make a clear-cut decision. I don't want to do a two-month experiment. Is there anyone who has faced such a dilemma before? Or is going through one right now?

I have already received the appointment letter and have only two months after which I have to join.

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Hi,

Although most of the points have been covered by other senior members, do a CBA in terms of CTC in both the companies:

- There could be lots of perks/benefits provided in government companies which are not counted in CTC.
- Almost the entire CTC would be fixed with no variable component (I believe) in Govt. Co.
- There could be a lot of tax advantages/shields because of non-cash benefits in the government sector.
- Is everything in the private company CTC fixed? How much is variable?
- How is your taxability on both CTCs?

After considering all this, if you are confident, then only join.

Thanks,
Verma HR

The tax liability on the CTC offered by the private sector organization is almost the same as in my current government salary. The advantage is that there is a nontaxable part in the CTC offered by the private organization on which I think I will only have to pay FBT.

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Don't try it for 2 months... that's not enough time to judge.

Can you take a 2-year unpaid leave from the government organization?

Not possible as I have to submit a relieving letter at the time of joining. As I said, it's going to be a one-way ticket.

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Hi,

I would advise you to look at it differently. It entirely depends on what you want: challenges and a sense of achievement or a steady cushy routine, which probably hasn't changed much. Money may be a great factor, but are you up for the adventure? You probably need to examine it by asking yourself - am I going to love what I will end up doing? Not that you will even figure that out until you have started.

Come to an agreement and take a long leave from work. Look at the offered package as a vacation project that you want to experiment with. If you are confident about yourself, you may want a probation clause put in so that your interests are covered, as well as the company's interest.

All the best! Cheers, Sandy