Long Hours High Pay vs Low Hours Average Pay

Hello everyone,

It is my first time posting stuff here, and I would appreciate if anyone could give me some light to help me decide whether I should change jobs or not. My goal here is not to outsource my decision, but rather collect valuable input from the members here that are more experienced than I am.

To give some context: I work in Project Finance (i'm an associate) for a consulting company in a MCOL area. We provide financial advisory services for companies and also debt structuring, almost like an IB boutique but 100% focused in Project Finance/Infrastructure.

Last year my total comp was 187k after tax, 80% base and 20% bonus. I work on average 40-50h most weeks, with some occasional weekends here and there (although very rare) and I think the most I've worked in the last year was 60h-70h per week during a two-week span.

I consider my position as one of incredible work life balance. I have unlimited WFH, live in a walking distance to my office (10min walk), and can travel while working. I enjoy my job, but sometimes I feel a little bit disappointed with my company and colleagues because they're not so smart or driven comparing to the people I've used to work with in high finance in the past (think PE/Buy-Side).

However, I got an offer from a big European bank to work in the PF team. My total comp would go to 320k after tax (60% base and 40% bonus), and I'm really excited about the job description, the deal flow and the group seems to be very laidback and easygoing. 

The only problem is: during the interview, the VP made it clear that even though they're not a sweatshop (no facetime required, you can leave your desk early if there's nothing going on), they still work around the clock during live deals. Sometimes they work all weekends in a month, and usually from 09AM to 01AM and it can get even worse sometimes.

I'm really divided if I should even consider going there after that. I've worked those hours in the past and I remember how awful it was, and how it takes a toll in my mental health.

But I'm not sure if I'm being soft or exaggerating. The VP said that during "normal" times they usually leave at 7PM - 8PM.

What do you guys think? What would you do if you were in my shoes?

Thanks!

6 Comments
 

Based on the most helpful WSO content, here's how you can weigh your options:

Key Considerations:

  1. Compensation vs. Lifestyle:

    • Your current role offers a solid $187k after-tax compensation with excellent work-life balance (40-50 hours/week, rare weekends, WFH flexibility, and minimal commute). This is a rare combination in finance.
    • The new offer bumps your after-tax comp to $320k, but the hours are significantly more demanding, especially during live deals (09AM-01AM, weekends, etc.). Even with "normal" times ending at 7-8 PM, the intensity during peak periods could take a toll on your mental health.
  2. Work Environment:

    • You mentioned feeling underwhelmed by your current colleagues' drive and intelligence compared to your past high-finance experience. The new role might provide a more stimulating environment with a stronger deal flow and a team that aligns with your ambitions.
    • However, the VP's transparency about the hours suggests that the laidback culture may not fully offset the demanding workload during live deals.
  3. Long-Term Goals:

    • If your goal is to maximize earnings and career progression in high finance, the new role could be a stepping stone. The higher comp and exposure to a big European bank's PF team might open doors to even more lucrative opportunities down the line.
    • On the other hand, if maintaining your current work-life balance and mental health is a priority, the trade-off might not be worth it. As highlighted in WSO threads, many professionals regret sacrificing their well-being for higher pay, especially when the marginal utility of additional income diminishes after a certain point.
  4. Personal Experience:

    • You've already experienced the grueling hours of high finance and know the impact it had on your mental health. This self-awareness is crucial. If you struggled with those hours before, it's worth considering whether the additional comp justifies revisiting that lifestyle.

What Would WSO Monkeys Do?

  • Stay in Current Role: Many WSO users emphasize the value of work-life balance, especially when you're already earning a comfortable salary. If you're content with your lifestyle and can tolerate the less driven environment, staying put might be the better choice.
  • Take the New Role: If you're ambitious and willing to endure the hours for a few years to achieve your long-term goals, the new role could be a worthwhile challenge. Just ensure you have strategies in place to manage stress and maintain your mental health.

Final Thoughts:

Ultimately, the decision depends on your priorities. If you value balance and mental health, your current role is hard to beat. If you're driven by career growth and higher earnings, the new role could be a calculated risk. Remember, as one WSO user put it, "Life isn't all about money." Choose the path that aligns with your personal and professional goals.

Sources: Work/Life Balance - Hours, Lifestyle & Hours in Corporate Finance, Where is the compensation in banking? Is it worth taking a pay cut for the long-term prospects?, , A Guide for Switching From Commercial Banking to Investment Banking

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

Sounds like your current role pays very well for the hours but you might want to push yourself and get the extra reward 

Granted these are long hard hours and life is not all about work. On the other hand I know what it’s like to be surrounded by mediocrity complacency and wanting to push myself more and get more out of life/career

There is no risk free option. You should think about where this role can take you or if it effectively leaves you stuck in place

The other is hard work but comp and career opportunity is a big level up. 
 

Edit:
I’ve actually just read your post again and you seem well aware of all of this. Maybe the concern is that you will not survive the pressure? The other is whatever the vp is quoting you is likely to be worse IRL - because it sounds prety reasonable for the comp. I guess up to you - you could be walking into total landline if it’s a sweaty and shit team you can’t learn from. I believe you can’t run from hard work and if you want the most of life its what is required. Similarly you want to pick a good shop with people that will help nurture your career. 

What is it about long hours truly that makes your mental health decline? Can you fix it with more experience and competency? If you are destined for unhappiness is a 1-2 year stint worth it? Could you return to your current shop in a much better position afterwards?

 

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