Hey everyone, this is a bit of a career question but I view this more through the financial lens. I want to buy a house and have kids soon but really want a stable income.
Current situation: I know I’m going to be laid off in 1 year. My severance would be 6m of salary. So I have about 18 months of income at best.
I recently received a job offer for a large raise (~30%). The problem is: it’s for a startup that is going through a major restructuring soon. On top of that, their severance is only 1 month of salary. So if I go there, I’d probably have ~3m of pay at 130% of what I’m making now guaranteed.
But if I take the job, I’d also have a chance at surviving the startup restructuring and still being employed this time next year.
So, do I take the chance at the startup and try to survive the restructuring? Or do I stay in my current position and try to find a better opportunity?
EDIT: changed wording of current situation. I’m guaranteed to be laid off within a year, not in a year like I said initially
Know I’m going to get laid off in a year. Should I take a risky job? Or ride this out?
byu/43Gofres inpersonalfinance
Posted by 43Gofres
23 Comments
if you consider your severance your compensation for the next 12 months is basically +50% so the startup is less.
If your goal is a stable income, I’m not sure a startup is what I’d recommend either.
I would stay and use the 12 months to build skills to get a stable better offer to move into. It’s always work to learn a new job, better to use this stable time to be as strong as you can be entering the job market in a year.
I say stay until the severance is guaranteed. Then double up with a new job when severance begins. Save what you can and cut expenses (a good idea anyway) in case you have to live on that post severance.
The way I see it, you got a year to find a better paying job with less risk than the current offer. Then you dial back your salary expectations, and you have 6 months to find at least an equal job.
Rarely do they lay off people that they just hired, its usually more senior people with higher benefits.
I wouldn’t take it, you still have 18 months to find something better than the startup. Stay in your current role and continue looking for something stable.
3mo of pay at 130% of what you’re making now is 4mo of guaranteed pay vs. 18mo of guaranteed pay. I know which one I’d take, especially if you’re looking for a stable situation.
Startups in general aren’t stable. They can be fun if you don’t mind long hours and a bit more pressure, but way more startups fail than succeed. And coming from a guy who’s worked for a few of them, even the successful ones rarely pay out in a big way.
I’m guessing you’re in software, which is going through some big changes right now. I’d use those 12mo to build and diversify my skill set, and start putting out feelers with friends and former coworkers after the new year.
I would wait, stay at current job get your severely, if the startup survives and still has a position then apply for it.
I always say look for a job when you don’t need it. It is much more stressful when you are unemployed. It is kinda like when banks want to give you a loan when you don’t need it but when you do, they don’t.
In this market it’s better to take the new job that is offered, unless you’re expecting a nice severance.
Let them lay off so they can pay you.
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If stability matters most, stay and leverage severance. Only risk the startup if you can financially absorb potential loss.
If you’re going to get severance afterwards, I would stay and look for a new job once that’s coming in. Guaranteed bonus income for X amount of time sounds nice. There’s no reason you can’t spend the last 2 months lining up new work to get like +30-60% salary.
If there isn’t any severance then just go get a new job now.
How’s the job market? It seems you have at least a year to loom for a stable job.
Ride it out, brother sometimes the grass isn’t always greener on the other side
From what you describe you will be unemployed either way so might as well have fun at the startup. 😄
I would definitely ride this out. Safer gamble. Nothing is for certain, but this could be a blessing. Use this time to level up and apply for better in the meantime time. Get networking, you know the end is coming so be prepared. You’re in a better position than those who get laid off with little notice. Capitalize on it!
Are you providing enough value in the restructure to be likely to survive? The new place sounds like it’s got the longest-term potential for your career, despite the risk. If you don’t take the risk now before you have kids, you more likely won’t be able to down the line when you do have all the added responsibility.
I imagine you must have some level of understanding of how you fit into the startup’s business, and the business’s medium to long-term needs, which can help you assess your likelihood of surviving restructure. If you don’t feel like you do, I’d ask more questions about that so you can better gauge all of the nuance at play.
I would stay in the current role, but keep looking for something more stable than a startup. The market for software+data is weird right now, but not so bad you couldn’t find something with enough time. You have experience and current employment… leverage it.
Stay where you are. Startups are notoriously shaky.
If you were in a stable job, is this new position a job that you would want to take? Are there other attributes of the job that you like?
I don’t know how you can be certain you’ll be laid off within a year (maybe your product is getting phased out?), but personally, I would keep looking unless the startup is something you really want to do. In the meantime network and build your skills.
This is the dilemma, do you take a risk on yourself and your skills to work through a restructuring? Or do you play it safe? Playing it safe only prolongs the inevitable.
I say go for the risk if you’re not risk adverse. They want you there for a reason. Your skills, etc. seem to be what they’re looking for. They see that in you, so see it in yourself.
If you’re not risk adverse, stay where you are and start looking now for a new job.
Good luck