What to consider before taking a big raise


p 1 a big pay raise is tempting but ask yourself 4 essential questions before you take that job or promotion

The pandemic led many individuals to reevaluate their careers. A latest examine from human assets software program and companies large, Ceridian, discovered that 64% of Individuals have been actively on the lookout for new jobs or would not less than consider leaving their present employer if approached by one other firm. This was very true amongst staff below 30, three-fourths of whom mentioned they’re keen to make a profession transfer.

The attract is palpable. Compensation packages are enticing, and employers are providing elevated flexibility. Most firms are additionally aggressively courting girls and traditionally underrepresented minorities. When you’re on the receiving finish of this elevated outreach, how do you resolve if an attractive provide is de facto a smart transfer? Particularly for youthful staff saddled with pupil debt, it’s simple to grasp the pull of upper pay. However you want to look deeper to know if a new job is de facto the perfect alternative to advance your profession and private development.

Aspirations versus objectives

It’s laborious to try this successfully with out first setting clear objectives. The extra particular your objectives, the higher. It’s one factor to aspire to a C-Suite position. It’s one other to assert, “My purpose is to be a Fortune 100 CFO in 15 years.” Both goal will assist you rule some alternatives out and others in. However the second is much better for differentiating high-value decisions from shiny distractions. You’ll be able to extra clearly—and proactively—determine the roles and employers that may push you towards your final goal. And also you’re higher outfitted to weigh all of the issues that may place you for a senior CFO position, not merely assess whether or not the following job pays greater than the present one.

Assess your place utilizing Internet Current Worth (NPV)

When colleagues—particularly these early of their profession—ask my recommendation on new alternatives, I begin by telling them to focus extra on long-term beneficial properties and “hidden advantages” than on evaluating the headline provide to their present circumstances.  A brand new position’s “Internet Current Worth” is way extra essential than its speedy influence on subsequent yr’s pay. An excellent profession is constructed on roles that compound into a steeper and steeper trajectory. Your subsequent job could pay lower than different options however be a better option if it opens up future roles that bend your profession curve up. In different phrases, its speedy monetary worth could also be decrease than one other selection, however its web current profession worth could also be a lot greater.

Questions that preserve NPV in focus

In fact, compensation issues. And usually, you’d like every profession step to include greater pay. However to assist make sure you’re not simply doing short-term math, there are a number of good questions to ask about any job alternative.

If this job hadn’t discovered me, would I’ve sought it out?

Everybody loves to be courted.  When a marquee agency or govt recruiter contacts you about a chance, it’s laborious not to take curiosity. The dialog flatters your self-worth and excites your sense of potentialities. However that doesn’t imply it’s the precise job or the precise time for a transfer. Flip the tables.

Based mostly in your objectives, you need to have your personal checklist of roles that might be good subsequent steps and the highest firms that might greatest place you for development and visibility. If the corporate that contacted you isn’t in your checklist, proceed with warning. It’s superb to consider whether or not your checklist missed a compelling possibility. However don’t get seduced down a distracting path simply because somebody flattered you with a recruiting name.


Am I signing up for an thrilling dash as an alternative of working a marathon?

It’s superb to tackle thrilling, maybe high-paying, short-term assignments, if there’s a dependable path to the following step. However a brief dash—regardless of how thrilling—that leaves you on the sidelines afterward might be a harmful detour. Fastidiously assess the dynamics. For instance, relying on the corporate and its tradition, a world task might be each exhilarating and accelerating. However in different instances, excessive dwelling workplace turnover and continuously shifting priorities may go away you out of sight and out of thoughts on the finish of your task, inflicting your profession to stall; or worse, to derail.

Ask who, then what? (in that order)

Most job descriptions give attention to what you can be doing however hardly ever point out who you’ll be doing it with. Is your potential new boss the sort who develops their folks and advocates for alternatives? Or one who extra typically neglects the workforce and takes credit score for his or her work? Particularly early in your profession, the distinction between these two archetypes can matter far more than the literal position you settle for.  You’ll want mentors and sponsors to maximize your profession potential. Each job selection is a likelihood to choose a number of the individuals who will play essential roles in your future.

What is my likelihood of success?

Before you join any job, visualize the tangible and quantifiable contributions you’ll deliver to proceed constructing your monitor file of success. Be sincere with your self. Are you prepared to take the following step or are there nonetheless some gaps you want to fill to make success a likelihood, not simply a chance? As a result of any profession is a marathon, it’s higher to tempo your self and win than to dash too quick and run out of fuel.

Bear in mind, your profession is an arc

There’s a lot to consider when vetting any new alternative. One measurement doesn’t match all, however as a broad information, it’s helpful to consider totally different priorities at totally different phases. Early in your profession, discover roles that present deep, wealthy coaching alternatives. 

As you be taught and develop, give attention to greater visibility, greater influence roles throughout the center of your journey. If leveraged nicely, that places you in a place to apply expertise and knowledge to management roles on the high of your organization. 

And keep in mind, you don’t have to win the race by your self. An outdated proverb supplies good recommendation: “If you need to go rapidly, go alone; in order for you to go far, go collectively.”

Alan Bowser is co-head of the Americas area and chief variety officer at Bridgewater Associates.