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Payrise or bonus?

7 replies

DiamondShoes · 09/12/2010 22:10

DH had worked for the same company for almost ten years. They are flexible and understanding, which is great as we have small children and I have developed health issues over the past few years which means it is extremely valuable to have DH able to work from home or rush back from the office if he is needed here.

Valuable enough that it's been worth (in our estimation), a lack of career progression he could've had in a larger company. He has the example of former colleagues to go on and with his skillset could be on a salary 50% higher than what he's currently being paid. But as I said, for us the flexibility and personal relationship has been worth it.

However my health is much improved and our DCs will soon all be at school fulltime (within the next 18 months). DH feels ready to make more of an overt commitment to his career and it's becoming clear that he'll need to move jobs to do so. He's thinking he will start looking in the next year or so, depending on the job market. He is certain he wants to leave, though.

He was offered, today, a choice - a five grand payrise or a five grand bonus. He hasn't had a payrise for a couple of years and has recently taken on loads of extra responsibilty and the payrise would bring him in line with his collegues who are at a similar 'level'.

It seems to me that the payrise would be the better option, but he seems to think we would end up with 'more' money if he were to take the bonus.

Any advice? He works in financial services.

OP posts:
RockChick1984 · 09/12/2010 22:43

If he's planningon staying with the company for more than 12 months surely the pay rise would be better, as a bonus is a one-off but the pay rise would be permanent? If he's already started looking at other jobs and could move within 12 months the bonus would probably be the better option IMO xxx

Alibabaandthe40nappies · 09/12/2010 22:47

I would take the payrise, because if he can't find anything else that is suitable then he has that rise ongoing year after year.
Also if the company pay a percentage into his pension then that will increase with a payrise and not a bonus, same with life insurance or any other salary linked benefit.

Final reason is that he has a higher starting point when looking at new jobs - some places will assume that there is a problem with somebody who is being paid below the market rate and either not offer a job at all or offer one with a lower value package.

DiamondShoes · 09/12/2010 22:51

Yes, all good points. I suspect that the appeal of the bonus option for DH is that he can then feel he could leave at any time, if you see what I mean? I think the payrise would be the more practical option.

OP posts:
Alibabaandthe40nappies · 09/12/2010 23:08

Yes I do see what you mean, and certainly if he had something else lined up or was even at interview stage then it would be a very attractive option.

DiamondShoes · 10/12/2010 00:10

Yeah, but he doesn't. I do sympathise (he's a doer and now he's made the decision to move on is champing at the bit), but I'll be saying my vote is for the payrise I think. Thanks for the advice :)

OP posts:
slhilly · 10/12/2010 01:47

Not quite clear: does he get the bonus now? If so, I think he's right -- a bird in the hand and all that. In 11 months time, he can argue the case for deserving another bonus, if he's still there!

ninedragons · 10/12/2010 04:10

Payrise.

All companies will want to know your last salary and will work from there when they are formulating an offer. Even if he doesn't get the full 5k from this particular company this year, he will get it from his next employer.

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