I've been offered a promotion, only thing is I'll earning less...?

Question

I've been in my role for roughly 2 years and have just been offered a promotion out of the blue. I am quite happy in my current role however I can't see myself wanting to do it for more than another 2 - 4 years.
After adding everything up it'll mean that I'll been earning roughly 7k p.a less than I am in my current role. The extra 7k I totalled up comes from overtime (Which I choose to do) and food allowance. I'm really unsure what to do. The new role sounds amazing, and is just what I want to progress to eventually.
The Pros: A more senior role, more of a routine to my day, 9 – 5, opportunity for further progression.
The Cons: -7K
The problem is that my boss has said that there is no budget for an increase in my current salary, and I’ll no longer be entitled to the overtime and food allowance. With a mortgage and bills to pay, I’m unsure that it is a good move to make.
What would you do?

Answer 1

Tell your boss "Thanks for the offer but you can't really afford to take the promotion at this time"....leave the ball in his court.

Answer 2

You make 7k now with overtime. The new job you will make 7k without working over time. Food allowance comes in handy, however it is just for you right?
This job sounds as if it comes with more duties? Will you get to spend more time with the family? Are there beanies to the job that is not "written" in the golden book?
What I would do, or what we have done before is the Mr. and I would write down on a piece of paper with two columns. Pro and cons. See which column is the best for us.
Good luck and I agree hard decision.

Answer 3

Since you're losing out on the overtime and meal allowance anyway and are not too happy with the job you have for the next 10 years and more, take the one that will eventually get you where you want to be. The $ are less, make yourself a budget and write down your pay outs and intake and take it from there. If you really can't afford it, you'll know what you have to do.

Answer 4

Life is always better then money, and the money will come again once the time is put in. You might loose 7k in the short term but in the long term you will gain more control of your life. This happened to my bother-in -law and excepted it, and now after a year or so he is better off.
When things come out of the blue take the chance because you never know where you will end up.

Answer 5

Look at it this way...

They want to move you to a salaried position, take on more responsibility, get yelled at by more people, and they want you to do this for $7,000 less a year.

I don't know about you, but I don't work for funzies...

I expect to be paid on a scale commensurate with my job duties.

I am always suspect when I hear stories like this. I always think about the payoff.

What you have to answer for yourself has to do with the promotion. As Frank Zappa might have said, is this a real promotion, or a "Sears" promotion.

I have seen situations where a level of management is created where there is no real management (pretend promotions) but getting people off hourly and on to salaried positions certainly helps the company's bottom line.

Then they locate the people where "title prestige" is more important than annual income, and these people will jump at the chance to move up, so to speak.

I'm hopeful this is not the situation you are faced with.

Whenever I hear about positions opening up for advancement, then suddenly there is no available funds in the budget to actually pay for these managers, I can only think that something else is going on, or there is an ulterior motive on the part of the company.

You are emotionally involved with this process, so it's very difficult to look at this objectively. But think about the fact that this company that you work for has an opportunity for you to advance, but you are going to take a $7,000 hit in order to take this advancement. In effect, you are paying them to become a manager.

Is this Amway or what?

Typically American companies work on a rewards/benefit system. You work your butt off for a company, and you are rewarded with the opportunity to advance. And the benefit for this advancement is you get more pay for the position, and the company is more assured of making the correct "hire" into the new position, because of your track record.

This sounds to me like the company is having cash flow problems, or someone in accounting said that over-time is too high. It's time to kick some hourly people into salary positions.

Some things to think about:

1. Are you the only person who has been offered this?
2. Are the benefits of promotion real or done with mirrors?
3. Will there be a pay increase in the next budgetary period?
4. How will this move affect your position with the company in five years?
5. Happiness of new position vs. 7,000 less in your pocket?

What it comes down to is how you feel about the company. Are they doing this because you are a valueable commodity to them, and they genuinely want you in this position, and that they are willing to try to make up the lost income in some other way? Or are they offering this to a bunch of people as a way of alleviating the cost of over-time and food allowences?

Answer 6

If you feel you can manage financially on 7k less a year until the better prospects become available then you should go for it.You never know new oppertunities may be just around the corner.

Answer 7

This promotion sounds like "the shaft".

However, you plan to stay no longer than 4 years and it seems to be your only option, since you won't get O.T. anymore on what you are currently doing. Mortgage and bills. What can you do??

If anything, the "promotion" will look good on future jobs.

Take the promotion.

Answer 8

Turn it down. When you take the job, the company will have you doing the old job with a new title and less pay. This con game is going on all the time.

Answer 9

That's a tough one. Years ago, I took the promotion (about 5,000 less per year back in the late 80s for me). It was a struggle, but was the right decision long term.

Answer 10

i think of your mum needs you just to get a role extremely, and additionally you would be suprised the form of lady mechanics there are at the instant. Plus end of the day, what's masculine and lady jobs at the instant? you notice many male hairdressers and lady chefs and so on. once you pronounced approximately your dad asserting he enables you to be female as a results of fact it makes you chuffed even regardless of the undeniable fact that he does not like it, i think of that asserts, he accepts you who you're, as he needs you to be chuffed, despite if it is being female.

Answer 11

than don't at least you have a postion in which , you are still getting a good pay , weather its not something you like or not, you might not even like that promtion , and why would you go and take less money, like you said you have a mortage and bills to pay best to put where you are , good luck.