Would you leave a fed job?
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Anonymous
| I have a secure federal job, after 14 years I make $158k and always imagined I'd stay until retirement. One of our contractors just asked me if I'd consider doing virtually the same job for them for over $200kthough in guessing the benefits aren't as good and the company is smaller and less secure. Would you consider leaving federal employment under these circumstances? |
Anonymous
|
A 40k raise before taxes. Let's call that a 25k raise after taxes. You also miss out on your pension contributions each year going forward, that's difficult to value but probably something like $8k per year at your level. So now it's effectively a $17k raise. You may also lose out on a 401k match (most private employers don't offer this). That's another $8k per year at your income. Now it's effectively a $9k raise.
No way in hell I'd move to a less secure position (with presumably less liberal leave policies as well) for an additional $9k per year. (And I didn't even consider health insurance costs or other benefits that government employment has). I've made some assumptions here, so you should re-run the numbers for your specific situation, with all the information that you know that we don't. But, this was for illustration purposes -- make sure that you know the true value of the raise, not the nominal value of $200k minus $158k. |
Anonymous
| I'd definitely leave for more money and did just that. Worked out great for me. |
Anonymous
| Job security is pretty important to us, so I probably wouldn't. |
Anonymous
+1. I'd run the numbers then weigh that against the risk of being a contractor and leaving a fed job when you likely won't be able to get back in for several years. |
Anonymous
| It depends on whether the exit options are better in the long run for the contractor position, which i doubt exists. I'm a fed attorney pretty early in my career (GS12 with a ladder to GS15) and I wouldn't even consider trading for a Biglaw job unless it's 2 times my current pay. Heck...I might not even want to take that job if it's offered and gift-wrapped with a bow on top... |
Anonymous
| No, I would not. |
Anonymous
| It also depends if your spouse works and what the combined income is. If you take a risk and then get laid off next year, how screwed would you be? |
Anonymous
| No way. DH did 15 years ago and we've never quite recovered. I would stay put. |
Anonymous
| Another year, op will get 8 hrs of annual too!! Crazy or stupid, idk. |
Anonymous
| I would not do it. Less stability. Little gain. Less flexibility. |
Anonymous
| If I were still in my 20s yes but otherwise nope. |
Anonymous
|
Only if your spouse is a fed. If one of you is a fed and can carry all the insurances, then it might make some sense.
I'm 26 years in and two years away from full retirement. A contractor pitched me, and I gave them the "are you kidding me?" look. My kids are still in elementary so I like job security for now. |
Anonymous
Yes, but i job hop every ~3 years and make 280k now. My employer not only offers a 10k 401k match, but I get an ESPP (15% discount) and I have RSUs. On RSUs ALONE i have nearly 300k in options from prior and current employer. Think I had to go in today? Nope. Deosnt get taken from ky PTO because that is unlimited. But what do I care? 7k was just DD into my checking for 2 weeks of work. I cannot imagine making 158k/yr and the cieling not being much higher. However clearly my risk tolerance is MUCH higher than yours, i prefer high risk, high reward. I want more out of life that the basics. So of course i would take it. No brainer. Between DH and I we contribute 53k to 401k and 11k to IRAs. |
Anonymous
| No I wouldn't. |