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?)
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.
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.
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.
From India, Mumbai
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2638In addition, with the new company, you have to relocate, which has its own problems (what's the cost of housing in the new location?)
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.
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.
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.
From India, Mumbai
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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 3 months if they are keen on retaining you? If they insist on waiting, propose a clause to receive the 3 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?
From India, Bangalore
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From India, Bangalore
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Hello sid.biswal123,
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, and 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 about relocation, and hence CE took advantage of it.
From India, Ahmedabad
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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, and 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 about relocation, and hence CE took advantage of it.
From India, Ahmedabad
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I agree with QUAMREAZAM.
After resignation, accepting a counter offer 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.
AK MATHUR
From India, Delhi
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After resignation, accepting a counter offer 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.
AK MATHUR
From India, Delhi
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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.
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?
From India, Bangalore
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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?
From India, Bangalore
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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.
However, all said and done, both options being equal, consider the following aspects which may help you to decide finally -
1. 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?
2. 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?
3. 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?
4. 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.
Kumar S.
From India, Bangalore
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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.
However, all said and done, both options being equal, consider the following aspects which may help you to decide finally -
1. 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?
2. 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?
3. 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?
4. 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.
Kumar S.
From India, Bangalore
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Dear Avloc,
All experts would keep on advising you for all time to come. In the end, you would be more confused than clear. Close your eyes, weigh your options, as you are the best judge of your situation and position, and then decide. Please thank everybody and close the discussion.
Regards,
Ravi Thakur
From India, New Delhi
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All experts would keep on advising you for all time to come. In the end, you would be more confused than clear. Close your eyes, weigh your options, as you are the best judge of your situation and position, and then decide. Please thank everybody and close the discussion.
Regards,
Ravi Thakur
From India, New Delhi
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Hello all,
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 if I can recreate my success.
Thank you all for the help.
PS: Please close this thread.
From India, Hyderabad
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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 if I can recreate my success.
Thank you all for the help.
PS: Please close this thread.
From India, Hyderabad
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