Well, like the title says I got the offer today. I just have some questions, and I would like to ask as many folks as possible, since I'm a little ignorant on this subject...

First of all the job is salary, would pay about $1000 a year more than what I make currently, however since it is salary there's no overtime. He said he's very flexible on hours though, and if I work a weekend or stay late I can take off anytime that's within reason... I would like to have the extra pay of overtime, but this works too... not many places hire someone like myself as hourly with overtime...

Next is insurance. My company currently pays my insurance. It's not great, and quite restrictive on who I can see, but it does offer a prescription card... Something like $10 for generic medication, $20 for name brand up to a certain amount. Well, the new company offers $4000 a year (apart from my salary) for me to aquire my own insurance. He says it is just too expensive for him to get group insurance. Does anyone here have their own insurance, and does $4000 a year sound like a good offer???

Next is retirement. My current company offers 4% match in a 401K which I stupidly have not taken advantage of for various reasons. The new company offers 3% in an IRA. Can someone tell me the major difference in 401K and IRA? Is this a good thing?

Also, the new company offers a yearly bonus based on profits and performance. The bonus comes around Christmas time... I currently get no bonuses for anything.

I would also have an evaluation at 6 months, and I'll have to go back and re-read, but I believe I would be eligible for a raise at that point...

It's a small company. A little smaller than where I currently work. My job duties would be strictly design/drafting. He said I may end up helping with other aspects of the job, but there would be no office duties or managing involved, which sounds great to me... I have no desire to be anyone's manager, but I love working for a small company where my boss is pretty much just another co-worker... Office appears to be very relaxed. Jeans & T-shirt kinda place, much like here...

I want to just call him, and ask where I sign, but I really need to go over the insurance/retirement aspects, and make sure its good...

I greatly appreciate any help anyone can offer...

THANKS!!!

 

Just some thoughts off the top of my head:

*4k isn't going to buy you squat if you're shopping for insurance on your own. Plus, if I remember correctly, you're talking about getting married? Now try to get insurance for you and a spouse on 4k a year -- good luck!

*Are you getting a lot of overtime pay at your current job? If so, it sounds to me as if you'd be taking a pay cut to go to this new employer? You'd have to hate you current place an awful lot to do that with the expenses of marriage staring you in the face.

*Depending on what kind of IRA it is (there are many) it may or may not be better than your 401K. The problem I see is that your contributions to an IRA could come out of "after tax" dollars, whereas the 401k comes out of pre-tax dollars -- a BIG difference! Plus, with most IRA's you have to do the leg work -- investigate the funds, sign up for the ones you want, write the check for the contribution, etc. Also keep in mind that as an individual, you will have a hard time finding funds that will even accept you as a customer -- the paperwork alone for a small contribution from an individual could easily cost more than the transaction itself -- thus no one will even want to mess with you! With a 401k the contributions come right from your paycheck -- no muss no fuss -- plus your current company is pooling the contributions from many participants, which makes them a more attractive customer to the funds, which in turn gives you access to funds that wouldn't even give you the time of day on your own. The way I'm reading it, what really is occurring is that the new place doesn't offer a retirement program, but they'll throw a few dollars at you if you want to go sign-up for something on your own.

Geesh -- on the surface it doesn't sound too good to me coming from where you are at!

 

Insurance: You;ll have to get a local quote to compare that.

Well said.

You have not mentioned salary. This is understandable. But, makes it harder to give advice.

If you make $30000 annualy. The 4% 401k match would be $1200.

I don't understand the 3% offer in an IRA. You can do an IRA on your own without your employer. A 401k (named for the IRS section governing) is a savings/retirement plan offered by companies. If you just put in 4% at your current job, you would double your $$.

Bonus, you would need to know what is a typical bonus to evaluate this.

6 mo evaluation, this may be as much to determine if you stay on as to how much your raise will be.

Just from what you've said. I see no clear reason to move unless you think the long term prospects would better.

 

I agree with the above comments, though the 401k/IRA comparison may not matter too much to you as it sounds as if you are not taking advantage of it now. The biggest difference I see is the health insurance costs. The $4000 will probably pay about half of your cost and maybe not even half. Another thing, you may end up resenting having to work extra if you are not making overtime. Some people have that mind set when they switch to salary. Weren't you saying not too long ago that you only got one week vacation and little appreciation for what you did at your current job? You are just going to have to list the pluses and minuses as they pertain to you. Good luck.

 

1,000 / 52 = $19.23 per week.

Trade a known for an unknown for $19 a week?
As for insurance coverage get on the phone, he's offering to supplement $333 per month, self pay plans run $600 to $1200 depending....

Current company matches first 4% and you aren't in?
Give someone a dollar to kick you in the azz.

Im sorry, I don't see the upside here.

 

congrats!

but word of advice... these days salray means unpaid overtime... not the absence of overtime.
And when he says "time off in lieu, within reason" means you can take off an 8 hr day for every 40 hrs of overtime.

 

J-150 hit it right on the head. Not only does "time off with in reason" mean 8 hrs for every 40 hrs overtime (if you are lucky) it usually means that take off at 3pm (rather then 5) and have the boss sigh and make you feel guilty for wanting to take a little time. Never mind those Saturday mornings that they never happen to tell you about until you are working there...

 

Can't say as I disagree with this statement. While my current job pays me a comfortable salary, if I divided it out by the number of hours "my a$$ was the company's a$$" in any given year, I'd probably do better at Taco Bell!

 

My last three jobs were salaried positions, they all took advantage of it.

[/quote]Next is insurance[/quote] For $4K, you could easily set up an MSA which involves a high deductable low cost major medical, and paying for routine expenses like visits etc out of the MSA. I believe you can contribute up to $2000.00 a year (tax free) into the account and it rolls over as well, if you don't spend it, you keep it.


To the best of my knowledge, a 401K is set up through a fund, you have limited choices as to where you can invest the money within the funds offered. An IRA can beinvested as you see fit for the most part, funds, bonds or even stocks.

Obviously an IRA gives you more control over the funds as far as investments. I had an IRA and a 401K through past employers, I recently cashed in the 401K and rolled it into the IRA (at least that's what my adviser said I did). My IRA has a few municipal bonds, a single stock and one fund), in the last two years my portfolio (thanks to the one stock more than anything) is up almost 700%, the growth for the fund I was in with the 401K has gained less than 10% in the same time period.

Can't really go wrong there.

If you don't have a lot of rotuine medical expenses, the MSA is the way to go, and the retirement package if fully exploited would be better than an 401K.

You might ask him though, if you're fully vested from day one. My wife wasn't vested in hers until 5 years. Doesn't mean anything if you plan on sticking around, but if not, definitely something to consider.

 

I didn't read ANY of this.

I just want to tell you congrats.

 

My opinion...

The difference in pay isn't good enough to leave your current job. Plus, in the long run, it will look better to have longer history in the job you have to a future potential employer that might have a much better offer to start you at.

As mentioned earlier, salaried personnel get taken advantage of. If the pay is only 1K different, I think you're nuts to take it.

 

time to negotiate...I'd be inclined to walk away from the deal as is.

Dont believe owners when they tell you that policy is policy.

My current employer said 1 week of vacation after a year and X amount a year in salary.

I got 3 weeks from day 1, tuition reimbursement, and X+10,000. Remember you are selling yourself here....what is their need for your skills.

If you get married and get covered by your wife's plan than that money is in your pocket. How is that money paid btw...regular earnings that you have to pay taxes on?

Get a commitment on your bonuses

Have them supply you with people that others there currently get the insurance from

Seriously look at the 401k vs IRA bit...the pre-tax info mentioned earlier is a big deal.

I dont mind salary but when I want to leave early or come in late once in a while dont give me crap about making it up either.

Dont be afraid to ask tough questions...it isnt personal...its business. You look out for yourself first...if he gets bothered by the questions/negotiating that is a sign how things will be down the pike.

 

Thanks for all the advise guys.

Well, I'm not looking at this job as a chance to make more money. Hopefully not less though either. I'm looking at it as a chance to get the hell out of here. I'm very unhappy here. I hate the way things are run, and I'm tired of doing every little tiny thing that needs to be done, then getting bitched at, because I did it the I was told, but someone has since changed her fricken mind (assuming she has one)... I'm tired of people smoking everywhere in the building except my office (like it makes a difference) I'm tired of purchasing everything needed here, I'm tired of keeping track of everthing needed here, I'm tired of keeping track of all equipment when no one else seems to know anything, I'm tired of selling crap for no commision, and putting up with customers who think I'm a salesman! I'm tired of being in charge of the shop, I was just yesterday nominated to do collections and find out why our invoices are not getting paid, I'm tired of working things out with my boss (the president of our company) and then getting told NOT to do anything he says. I'm tired of getting treated like a child when someone at the other office changes their mind on how I should do things WEEKLY, I'm tired of someone at the other office bitching at me for not sending her **** when she loses it, or its still sitting on HER fax, and yet I'm still responsible, and still have to resend it. I'm tired of being told how to do every little detail of my drawings, right down to the idiotic choices of layer colors (which use yellow! Hello, try to read yellow on a print, no seriously, try it!) by someone who's drawings I either redo or spend the entire shop time explaining to the guys what I think was trying to be conveyed... I'm tired of AutoCAD, I want to get back into 3D modeling. I'm tired of searching for another job (which I've been looking for about a year now in this area, and DON't want to move now) where all that's usually available is AutoCAD jobs where they're looking for highschool kids who'll work for $7/hr...

I'm just tired of getting up in the mornings, and hoping that things will be better where I'm just the designer. I've talked to 3 different people outside of the new company who all have good things to say about it. One currently works with them as a machinest, and the other two worked with the owner back before the company was started.

I just need something better than here, and there isn't much available...

Oh, he also said one week of vacation from the start, 2 wks after 2 years. Here it was 1 week after 1 year and 2 wks after 5 yrs...

I wouldn't be looking for insurance for both myself and the new wife on that $4000 I'm hoping that once were married I'll be able to get on her insurance. She's supposed to be looking into that. She works as a nurse for a private surgery clinic that is associated with the local hospital, and gets all the same benefits as the hospital employees, so hopefull insurance would work out there...

I've also got a friend who does all his own retirement investing and planning, so maybe he can help me out...

 

My girlfriend says I can get on her insurance policy as long as we're common law married. Yeah right; like I'm going to fall for that trick...

 

What is that, like living together for 7 years or somehing...


BTW, in the 4 years I've been here I've never used my insurance, just the dental that I pay extra for... got a filling 2 years ago... but...

Also, after talking to one of my co-worker buddies, he tells me he pays an additional $450 a month for his wife here. So, that wouldn't be saving me anything to stay. Either way, I guess you could say she wouldn't be covered by me...