Would You Pass Up a Raise and Management Position?
Recently I wrote an article about the great debate between hourly and a salary position. I am an hourly employee, however Mrs. Even Steven is a salaried employee, I shared some of the pros and cons of each. In most cases the salaried position is considered the career move, you are given more responsibility and more is expected of you. I am currently happy with the work I am doing and the potential work ahead, I enjoy the hours and getting done on time, and like everyone else in America believe I should be paid higher, but all-in all I’m happy right where I am at. Recently a management position opened up, I really had to think about my next move. Should I pass up a raise and management position?
The position for a manager opened up on another team in our department, as the former manager was transferring internally to a position with another team. Unintentionally I have followed this individual’s work path over the last 3 years, when he left each position I took a similar role in the department which he left, so based on the previous events, I should follow him right down the line and move on to a manager role. I started thinking and talking about it out loud, so what would change if I moved into a management?
- Go from hourly to salary
- Receive a 10% pay increase(estimated)
- Potential higher bonus
- Responsible for managing other employees, probably a team of 8-12
- Small shift in my scheduled hours and number of hours worked
- Learn a new position: training and management expectations
- More possibility of moving to other teams as a manager, which would lead to a higher salary
On the surface only a handful of things would change. I would get a 10% bump and more work and overseeing/managing people in exchange. Is it really worth it? Let’s throw out some numbers and apply them to my situation, maybe that will make things more clear. I’m going to use the national average for salary in America of $50,000 and that 25% will be taken from your check in taxes, FICA, etc.
|Increase||Annual||Bi-Monthly||Est Tax Rate||After Tax Bi-Monthly|
|Increase per paycheck||156.25|
My goal is financial independence in the next 6 years, would this get me there any faster? I mean simple math tells you that if your salary goes up, your financial independence date should shorten, but is it worth an extra $3,750 a year to have more work and most likely more stress and the potential for a position you would like less? If the increase would pay off my student loans in February instead of April would you take the job? If the math said that you were not going to retire in July 2020, but instead March 2020 would you take the position for an earlier retirement of 4 months less?