Sunday, 27 May 2012

Switching Job – For Monetary Benefits?
Each one of you at some point of time would have thought of changing your job. The reason for your decision could be different. Here are some of the common quoted reasons.
  • I have Bad Boss. I just want to get out of his clutches.
  • I want to join a bigger company, with onsite opportunities.
  • You were expecting a promotion and you colleague got it.
  • Your appraisal was very good, the merit number are not matching or reflecting the same.
The list can be endless… 
It is often said “People leave their bosses and not the company”. Historically statistics have shown this as the primary reason for people looking out for change.  Past or Historical data need not guarantee that the present and future will remain the same. Yes the trend has started changing.
The Gen Y or Gen Z generation is smart enough to handle their Bosses.  Current Trend is that people are switching Jobs not because of their bosses but because, they want better salaries.   Its Era of T-20 Cricket, everything should happen at lightning speed. You look for expensive watch that is out of your budget, you tend to think that you are underpaid. Next instantaneous reaction is to update your resume.
Is this approach Right? Is hopping job is the solution to earning more salary? Probably yes, but let me warn you, it is just temporary solution and not permanent one.
Let us take a scenario: Geetha who has 7 years of experience in Java Development is earning a salary of 8 Lakh. Frustrated!!!, as she could not afford the expensive watch, decided to quit the company and join any company that would offer  her 25% hike. With a month’s time she did manage to grab an offer of 10 Lakh Salary. The company offered this premium price as they were in urgent need of resource for high priority project.
Here comes the reality:  Every year companies get a report that details average salaries - categorized by role or years of experience. 3rd Party HR consulting companies provide this report by taking data from different companies.  Let us not dwell into further details..
For the sake of an-example let us assume as per the HR Consulting report - Market Median for a Java developer with 8 year of experience is 10 Lakh.  Do you think Geetha would get any hike in the upcoming? The answer is – She might end up getting very little hike. It would not be surprising if she does not get any hike. 
Now one might argue that “This is not fair”. We need to understand, the company needs to have some guidelines for salaries, only then it can operate rationally.  As Geetha is already on par with market, there is little chances that she would be given hefty hike.
Let us look into some commonly quoted reasons during salary Negotiation:
  • I need 10+ Lakh salaries because my friends are getting the same.
  • I need 40% hike to fulfill my persona dreams( buying home, luxury car)
  • Offer me good package as I don’t believe in hopping jobs frequently.
  • Inflation is high; House rents are high, give suitable offer.
  •  Most Common – I already have an offer of 8 Lakh. Give me better than this.
You may end up getting a job offer in spite of quoting one of the silliest reasons, simply because the company is need of resources.

Take away: - Though the change or switch in job boosted your salary with immediate effect, however down the line, you will be again on par with market standards.
My two Cents:
  • Choose a company that promises your better career over a company that offers highest salary.
  • You have new offer in hand, never ask your existing employer to match it.  This is just another form of blackmailing.
  • Change the job when you think you are no longer valued. Don’t jump to immediate conclusion. You need to give yourself enough time before you take any decision.
  • Finally, If you are switching Job- Just for sole reason “The salary” then thinks twice.
Would you change your company for better salary? What could drive you to look out for new job?


Anonymous said...

Excellet article!!!

WealthUCreate said...

Thank You Sir.

Pulkit said...

gud1 :-)bitter truth...

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