Torn Between a 40% Pay Bump with Relocation or Staying for a 30% Raise: What Would You Do?

I received an offer with a 40% pay increase and a promotion, but it requires relocation. Upon resigning, my current company assured me of a 30% salary increase along with a promotion in the upcoming appraisal cycle, which is expected in 3 months. I am confident they will uphold their commitment. The new company operates in the same domain, and my responsibilities would align closely with what I currently do.

I am currently situated at the lower end of the pay scale for my position in my current job. Even with a 30% raise, I would still find myself at the lower end of the pay scale post my promotion to the revised designation. I am uncertain about the next steps to take, as my initial decision was influenced by the low salary and designation issues that my current company had promised to address. Your guidance on this matter would be greatly appreciated.

Hi Hiral, both companies have 200-500 employees. With the NE, I would be working within a niche domain/market. The company is more focused on specialized solutions. Growth prospects and other aspects like performance reviews, shift timings, and more, I have yet to discuss with the reporting manager because during my interview, I was informed it's confidential, and he could not disclose information at this time.

Addressing Topics with the Line Manager

In addition to my earlier question, does it seem appropriate now to address these topics with the line manager, lest it comes across that I lack confidence?

Considering Relocation Based on Pay Increase

Based solely on the pay increase, would it be sensible to relocate?

Regards,

Of course not. I didn't understand how the disclosure of shift time would hamper the company's confidentiality. Anyway, you might want to consider the cost involved in relocation. A 40% hike with relocation expenses might equal a 30% hike by staying in the same company.

Approaching the Situation

There are two ways to approach this situation:

- **First, stay with the same company**: You don't need to adjust to the culture, people, and policies. You prefer being in your comfort zone.
- **Second, opt for a new opportunity**: You step into the effort zone. Develop new skills, meet new people, expand the scope for your future, learn new things, and adjust to all the changes mentioned above.

Your life goals will help you make the right decision. Now that your NE is ready to wait for 12 weeks, you can clarify the rest of the details with HR. You surely wouldn't want to risk your future with vague structures and policies. What if you end up in a bad situation? By saying this, I don't mean you should stick to your current employer only, but I suggest you analyze before it's too late.

Ethical Considerations of Accepting a Counteroffer

Accepting a counteroffer after resignation is not ethical. It can backfire as well. If the company was careful with you, they would have taken care of you initially.

What will you do if the commitment is not fulfilled? Will you do the same thing next year? You decided to change jobs; that's why you applied and got selected, so why are you going back? Think carefully and decide.

In my view, you should continue with your current employer for two reasons:

(a) A 30% increase with promotion and an enhanced role would make you much more relevant not only in the present job but also in the future. This shows your company puts a premium on your performance and is keen to retain you. Your staying back would further improve your bond with the company.

(b) Relocation has its own hidden costs, in addition to financial aspects such as cultural fit, local adjustments with the environment, etc. Furthermore, since the job profile is almost the same, you may not get the opportunity to learn anything new.

Please consider your decision in light of the above.

Regards,
Ravi Thakur
VP (Corp) and CS
Purearth Infrastructure Limited

It depends on how long you have been working in the CE. At times, change helps in growth. However, you have to make a decision based on your personal preferences. Some people do not like change, while others compulsorily look for change so that they do not get stereotyped.

A new work culture and location bring a change that prompts better performance; for some, it is the opposite. If you like taking risks, go ahead and join the NE. If you do not like taking risks and are happy in the current location, continue in the CE.

Whatever you decide, enjoy yourself.

I agree that accepting a counteroffer may not be ethical and can backfire. What will you do if the commitment is not fulfilled? If you decide to stay with the current employer, ask them to provide the raise with effect from the same time you will be getting there. Alternatively, you can inform them that you are ready to stay if they provide you with a written assurance that you will receive a pay hike of 30% automatically after three months.

In today’s corporate world, anything can happen. They may arrange for new staff with similar skills within the next three months, creating a situation where you may have to start looking for a new opportunity. These kinds of scenarios are common in today’s world, so be cautious and make a well-thought-out decision.

Remember, opportunities knock on the door, and it is up to us to decide whether it is the right time to accept them or not.

Best regards,
BABUDADA.

You must not bank on a gentleman's (verbal) offer. Make sure that you have all offers in writing before you make a decision. A promise that is not on paper is worthless...

Regards,
Riaan

You should accept the new offer of a 40% increase and move forward on your career path since you have already been with your current employer for 5 years. Later on, after 1 or 2 years, you may consider returning to your current employer with a further rise.

Considering the Pay Difference

A difference between 30% and 40% is not very high. In addition, with the new company, you have to relocate, which has its own problems (what's the cost of housing in the new location?).

Future Prospects with the Current Company

Further, they are going to give you a higher designation and higher pay after 4 months, which will definitely put you higher than the 40% the new company is offering. About you being at the bottom of the bracket, you need to speak to your manager and HR to work out how your career can be accelerated and what you need to do to move up faster.

Ethics of Accepting a Counteroffer

Taking up the counteroffer after resigning is not unethical. Sure, you put the new company in a spot as they have to recruit someone else, but you need to think of your future, not theirs.

Considerations Before Making a Decision

Having said that, you also need to consider a few other things:

- Is your existing company looking at this as blackmail? Meaning, are they reluctantly offering you a raise?
- How will this affect your future relationship with your company, managers, and others? You can't keep threatening to leave every year.
- The possibility of future growth in your current industry (as compared to the niche you were going to join) and the chance of moving from here to elsewhere in the next 2-4 years.

The decision is going to be a combination of all of that.

Firstly, you should have taken it up with your present employer to discuss the offer you are receiving and whether they are interested in matching it. Why would they want you to wait for three months if they are keen on retaining you? If they insist on waiting, propose a clause to receive the three months' hike as a pending bonus. Why should you lose out on the hike amount just because they want to wait? If they are genuinely interested, they will wait it out. As someone rightly said, they may be considering finding a replacement for you in the meantime. Everything should be documented in writing as people may not always keep their commitments.

Moreover, if you have 3-4 years of experience, gaining new experience in a different company can significantly boost your career. If the relocation is to a city you like, then don't hesitate. Furthermore, if you are competent enough, why are you in the lower salary bracket? It indicates that the company takes advantage when they can, so who knows if they won't do so in the future?

Your view is so correct from the employee's point of view, but just because I know this due to the poster's earlier thread, I am sharing it with you - CE has put a clause of a hike in salary after 12 weeks/3 months as the notice period is equal to 12 weeks/3 months. Hence, even if one decides to leave, they have to work at the same salary for this period.

Also, it has a different angle to it. I feel no company would give you a raise now when the appraisal is just within 3 months. The company would also want to check the employee's loyalty. What if the employee again demands a raise on the incremented amount and leaves within 3 months with some other new employer?

I agree with what you mentioned later, stating that the hike of 30% should be ensured somehow or increased to 40%, and to weigh the opportunity in terms of growth. But when the CE has offered a 30% hike, it has weighed the opportunity cost. I am sure the poster would have mentioned relocation, and hence CE took advantage of it.

I agree with QUAMREAZAM. After resignation, accepting a counteroffer is not ethical, even if the company agrees to pay you equal to what another company is offering you, starting from this month. What will you do if this year and again next year you are not considered for your regular increment or promotion?

Now you are leaving the company with good gestures and relations; they may welcome your entry as a friend. If you are truly satisfied with your work, they may offer you a new designation and a better salary at a later date.

Regards,
AK MATHUR

Then he can always ask his new colleague to buy out his notice period. An employee can leave after an appraisal hike too if he thinks he has been shortchanged. The company and employee have to show a little bit of faith in each other, drawing from past experience with each other. You have to give in a little bit to receive a little bit. As I said, the company can pay a 2/3 months' hike as an additional bonus after the appraisal instead of pending salary so that the employee doesn't think he loses out. Since the employee is in the lower bracket, the company is not losing out much by overpaying. Moreover, it will secure a dependable employee for the future.

Question on Company Payment Practices

My question is, why doesn't the company want to pay until it is a must? This attitude hampers the relationship. If you believe an employee is contributing to your profit, then pay the market rate. Sooner or later, the employee will realize their value and may feel shortchanged or work with a grudge. A disgruntled employee is never good for workforce morale. Why are companies very agile in CEO pay hikes without commensurate performance but think of all angles to avoid a hike/bonus for a performing employee?

Dear Avloc2003, I would put it like this: It's you who sought a change, and you should be the better person to decide which is better.

Considerations for Decision Making

However, all said and done, both options being equal, consider the following aspects which may help you to decide finally:

• How about your family? Are you married, with children? What is the impact of this change on your family life—would it be for the better or worse?

• Do you personally like to work in a new place, new office environment, with new colleagues, new assignments, new opportunities, and new challenges versus uncertain growth in CE? Incidentally, how long have you worked for the current employer? Do you consider it adequate, enough, or not enough? Was your experience during this period good, average, or bad? Can you rank it? Do you have job satisfaction?

• It is true that CE offers you a 30% hike after 3 months. What if the person who offered this switch over in these three months? Who would stand guarantee?

• Have you studied the prospects in the new company—is it promising?

If your tenure with CE is reasonably adequate for your domain, then a changeover always helps your CV, as you would have experienced more than adequate.

Yes, I would have evaluated all the above questionnaire and compared it with the 30% hike to come to a decision.

All the best.

Regards, Kumar S.

Thank you for taking the time out and sharing your views; these have been extremely helpful. However, I read these after taking the final step. Nevertheless, it helps reinforce my decision, which has been a difficult one.

I finally decided to call it quits. The counteroffer sounds practical, but I would not have been happy. In my heart, I don't see a future with the present company.

Maybe I am successful, maybe I am not at the new job. But then again, at least I tried to grow and was not given a handout. At the end of the day, it's all about experiences, and I want to experience a new place, a new job, and see if I can recreate my success.

Thank you all for the help.

PS: Please close this thread.