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
                   50,000.00                      2,083.33 25%                1,562.50
10%                      5,000.00                          208.33
                   55,000.00                      2,291.67 25%                1,718.75
Increase per paycheck                  156.25
Increase annually                3,750.00

 

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?

So put yourself in my shoes or even think about a salary increase in a new position one up from yours would you take it for the money and the extra work if you liked what you currently are doing?

21 Responses to “Would You Pass Up a Raise and Management Position?

  • Wow only 10%? That to me is a big fat no. When I moved in to management my raise was 47%. The level of accountability is way to much for a minor raise unless you are already banking some major money, but even then no one would take my spot when they could have freedom from “babysitting” employees for 10%. I’d give up 10% to not have to deal with employees. Maybe even 20%. I love them sometimes but other times they drive me crazy. I just turned down a higher management position which would have given me another $40,000 a year, but I’d have to move, I’d have no flexibility in my schedule like I have now and instead of 12 employees I’d be in charge of 71. Sometimes money isn’t worth what you lose out. I’m happy where I am at and sometimes the grass isn’t greener on the other side. If it’s less than $4k a year my guess is you could easily pick up another side job or “online” work to make up that money. Unless you are looking for management for your resume it doesn’t sound too appealing.
    Lance @ Healthy Wealthy Income recently posted…I Could Learn About Finances But Cats Are Too FunnyMy Profile

    • EvenStevenMoney
      3 years ago

      I like your comment that you would give up 10% to not have do deal with employees. Using the example of the 50K, you are right I feel like you can make that up in other areas online or part-time.

  • I’d think about it in terms of marketability and career path/earning ability. In my case, when I thought about this subject about 5-7 years ago, my goal was to be at a point where I could take a step back from the grind by my 30s in case I wanted to have a family or travel or take sabbaticals, etc.

    I didn’t intend to retire early, but I did want to be at a senior enough level in my career that I could make those choices based on what I wanted instead of being at the mercy of the company I was working for (which is generally what happens with hourly employees in many of the companies I’ve worked at).

    I’ve also found that with one exception, my salary increases were greatest as a manager. As an hourly employee, at best I could hope for 3-5% raises; as a manager, I’ve had more scope for accomplishment and so my case was always stronger for bigger and better raises at each step, which made a huge difference in paying off debt and increasing savings at an exponentially higher rate.

    That said, there is sure something to not having the responsibilities of management. Not having to deal with all the responsibilities of being a good manager, to start, and as you note, the earnings aren’t *that* much more for this particular role. So it has to be worth it for the big picture. It was for me, but only as a stepping stone to the eventual goal. In some companies/industries, you won’t get much of a bump going from one role to the next (blech), but you can always negotiate for more in a shorter time frame (which I did).
    Revanche recently posted…Applying the safety pads for LifeMy Profile

    • EvenStevenMoney
      3 years ago

      You bring up a great point as most managers are given a greater salary increase then the guy/gal sitting in the cube working on the project versus managing the work. The point you made about having the ability to take a step back for family, travel, etc shows that you thought it out and had a game plan. I think this is one thing I lack is my job/career plans, I certainly have a plan for my life and my early retirement and my investments and my debt repayment, need to map that out a little better. Thanks for stopping by, I updated my spam firewall and it’s been pretty sensitive, so thank you for re-posting.

  • If I was just starting out in my career…maybe in order to show the management title and experience on q resume. A 10% raise would not be worth it if I had to take on the additional responsibility that comes with a management role.
    Kassandra recently posted…Sunday Sweetness Volume 5My Profile

    • EvenStevenMoney
      3 years ago

      You bring up a great point, starting out your career having a management title shows well on the resume and in job interviews, since the manager when hiring you can see a future leader/go to person.

  • Hmmm you plan on retiring in 6 years? I’d take it. A nearly $4k year increase for approximately the same hours sounds like a good deal to me. I guess it’s a different situation when you’re trying to retire in six years, tho…this one has me puzzled. I guess most people would have at least 10+ years left in the work force so for almost everyone I think it’s a no-brainer.
    DC @ Young Adult Money recently posted…How to Get Started in Freelance WritingMy Profile

    • EvenStevenMoney
      3 years ago

      If it’s only about the money you are right it’s a no-brainer, when you start adding in extra responsibilities, etc then it becomes less of a no-brainer.

  • I probably wouldn’t take on a management role for only a 10% pay raise, unless there was a huge increase in benefits as well like vacation, working from home perks, etc.

    You also have to worry that your hourly wage would technically go down if you have to work extra hours or log in from outside of work going from hourly to salary. I know people that work crazy long hours, put in extra time from work for a slightly higher salary. Little do they know that their hourly rate is tiny with all the time they spend working!
    Debt Hater recently posted…Using a Low Flow Shower HeadMy Profile

  • 10% raise doesn’t seem like nearly enough to switch into management.

    However, you could always switch for the management experience, and then go after another company in a year or so for more money.

    If you don’t want to be a manager long-term, then no way!
    Genevieve recently posted…My Year of ChangeMy Profile

    • EvenStevenMoney
      3 years ago

      The decision certainly needs to factor in the end game, if I needed a manager title to leverage this position into a higher paid management job at another company, sounds like the right move. That’s not my long term goal so it would be a more of a money and power move.

  • Great article – I am just finishing up a similar article for my blog – more about should I switch jobs to a higher stress but higher paying position. I’ll give you my conclusion – no. And my pay increase would be more than 10%. I think that it all comes down to your personality – personally, I like life a little laid back, so my thinking is that more stress would clash with my personality, and since life is nice how it is now – I don’t always need to keep reaching for more and more money…there is nothing wrong with finding a position where you are comfy and not constantly trying to reach for more! Its kind of against how I was raised and the general American attitude – so sometimes I do worry I should keep reaching and climbing, but then I remind myself – its my life!
    Mrs SSC recently posted…WTF: I need HOW much to retire?My Profile

    • EvenStevenMoney
      3 years ago

      SSC I will have to check out the post I’m interested to read. I think i’m in your boat, it’s tough to go against logic of not going for the raise/promotion and telling your friends and family that you just were moved up. One thought that sticks in my mind, if I’m already going against the grain with my journey to retire early, why start the trend towards normal now;)

  • I managed to stay an “Individual contributer” for my 19 year software development career. It was the right choice for me.

    Plan out a jump to management carefully. Are you prepared to fire and hire people? My wife has managed teams of 10 to 18 for 15+ years. She is good at it, but it is stressful. Balancing all the personalities and issues of her team. It is a daily adventure.

    Don’t do it for the money (bonus). Do it because you want to help people grow and learn new skills. It could be a faster way to FI or it could be a trip to middle management. It’s always those middle managers that are squeezed out in downsizing.
    Wade recently posted…Radical Immediate Retirement?My Profile

    • EvenStevenMoney
      3 years ago

      I wouldn’t be doing it for the right reasons, it would be money only. I do like the “individual contributor” method, some of the managing people details while I am capable I don’t think I would really like it. Coaching basketball is different than managing personalities and issues.

  • I’m actually in a fairly similarish dilemma with work at the moment and I think what my gut is telling me is to make the switch as it would allow me to do more interesting work. That would come at a bit of a sacrifice in terms of job security and benefits. Take home pay would increase. I have until mid-November to figure it out.
    Steve recently posted…Zero to One Book GiveawayMy Profile

    • EvenStevenMoney
      3 years ago

      The interesting work part would certainly make me take a look and pay always helps. I don’t entirely believe in the term job security, but benefits are very important. Sounds like a tough call but I would lean towards the new spot as well.

  • I’d only take it if the positives outweigh the negatives. With management positions you end up having to work on weekends too. I wouldn’t want to do that myself.
    Tawcan recently posted…5 frugal ways to save on grocery billMy Profile

    • EvenStevenMoney
      3 years ago

      This position wouldn’t require weekend work as our line of work very rarely incorporates that into practice, but agreed I wouldn’t want to do that either.

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  • Career Dilemma - Kapitalust :

    […] was perusing the internet and it looks like Even Steven is facing similar issues on whether he should step into a management position. I’m not the only one suffering this dilemma currently! It looked like he got some insightful […]

    3 years ago

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