Do you Take the New Dev Job at $110k?

hey guys welcome to the video so somebody has a job where uh they're at job a and they like the job but they got a better offer at job b so then job a said wait a second we don't want you to leave so here's a little extra cash plus an opportunity to get some stocks in the company when they go public in a little bit of time so let's go over the email i got permission to read it and we'll talk about some of the some of the decision-making variables that you should consider in this situation not uncommon by the way so let's just read it hey stephan i'm a long time viewer and purchaser of many of your materials over the years i appreciate that i'm glad they came in helpful i have a slight dilemma on hand i got a job offer hey it's a good dilemma to have to be a senior developer the comp meaning what they're going to pay you the comp would be 110k plus a signing bonus of 7. my original company is willing to give me the title retention bonus of three and a half and 100k plus equity in the company worth around 75 which they plan to bring to the public within the next two years if i'm still with the company when they go public so it's contingent on he has to be there to realize these shares thank you for your time in ancient experience also you can use this in the video so there's a few variables here first of all with the 75k potential equity position that has to be weighed in terms of how probable is that how probable are they going to go public how probable is he going to be there in two years number one even with the increased job uh payment from the current employer which is 100 it's still 10 000 a year less than his current place so over two years that's a 20 000 dollar difference so the 75k goes down to 55k and then the signing bonus is seven versus three and a half so it's more like 50k 51 and a half k so basically this whole thing comes down to 51 and a half thousand do he does he move over from his current business to the next company rather based on a potential output a potential bonus of 50 000 or so dollars or k i'm not sure where he lives if he's in the uk or not but anyway whether 55 an extra 51 000 versus nothing um that's basically what we're looking at here we're looking at 50 000 difference that may be realized if he is still there in two years so he has to he has to decide what are the probabilities that he will still be there in two years um does he like where he currently is versus will he like it better where he's going are there any equity opportunities in the new business maybe if you go there after a year or two you'll get some equity opportunity there as well maybe in likely your 110 will go up higher may go to 115 might go to 120 over the next couple years right so all of a sudden that 75 000 shrinks that being said it it comes down to the probabilities here what are probabilities that you'll realize that everything is negotiable by the way you can come back and negotiate higher positions in each of these counter offers and offers i'll leave you with this story there's a classic study in psychology the marshmallow study where he got in a bunch of kids and he's told someone they told all the kids you can have two marshmallows now or if you can wait 15 20 minutes whatever the time frame was you can have five marshmallows something like that so some of the kids said okay we're gonna go for the two now because we want our marshmallows and some of the other kids said no we're gonna wait and we'll get the the five marshmallows so what they did is they tracked these people these kids throughout their lives and what they found is that the kids who were able to defer gratification were able to say i'll wait that extra time to get the five marshmallows they did far better in life the kids who took the marshmallows right away they didn't do as well so that tells you that the ability to be patient to defer gratification has tremendous benefits it's one of the key skills that you can develop one of the key impulse controls if you will that you can develop so in this situation you know it's whether you have to assess whether that's 75k one-time bonus potential which is actually 51k difference is really going to be worth it or not [Music] in this situation i would try to negotiate both both both positions up see if there's any potential equity position gain in the new company also with the new company you'll know if you're going to like it there after you go work there you're not sure does he like his current job or not does he like the type of work is he doing there does he like the people there these all have to be weighed so there's no cut and dry answer of course uh but at the end of the day i would try to play the medium term game if you will rather than the short game meaning if you assess in all this all things being equal that the new company will be better for you then go with the new if you feel in the medium term that the current company will be better for you then uh go stay with them and of course always consider the um what's the word i'm looking for always consider the uh quality of life where would you like to work all right i hope that helps

Channel: Stefan Mischook

Views: 4,599

Rating: 4.9478259 out of 5

Keywords: developervlogs, developermentoring

Id: L5Ozv2T0uFc

Length: 6min 11sec (371 seconds)

Published: Fri Sep 03 2021