Getting your Company to match a lateral offer
Background on my situation: Career-switched into IB after doing a stint in Big 4 consulting. Currently an Associate at a boutique/MM bank. Current comp is below market (true for base and bonus).
Situation: Recently got a job offered offer that's offering me (~$10-$20k) more than my current gig. I'd prefer to stay, since I've developed a decent network with VPs, Directors and (select) MDs, but obviously want my group to match (note: even if they matched this offer, my base is still below market). With that said, I have a few reservations/major concerns:
1) Not sure if leveraging my offer to get a raise will "poison the well" or burn bridges with the network I've developed at the firm; and
2) I also fear (and wouldn't be surprised) if they do decide to match, if they will f**k me over come bonus/raise season to try and make up for it. (e.g. match my offer that's $10-$20k but then reduce my bonus amount and/or also reduce the amount of my raise as well).
Was curious if anyone on here has been in a similar situation and have suggestion on how best to approach the subject.
Never accept a counteroffer, there was a reason you were looking in the first place. You will face a begrudging employer who will remember that you were interviewing elsewhere come bonus time and the rest of your days there.
Agreed with what's said above. If that amount of money is meaningful to you, take it and don't look back.
Even if you didn't get the offer and you just want to raise the fact that you know that comp is below street, be ready to leave or have another bird in hand you can go to cuz things go south quick. Even if you have a great relationship with your immediate boss, he'll need to raise it to his boss and things can take a turn for the worst for the people that don't know you or have directly worked with you and within that circle, an axe is going to come flying your way and you wouldn't know what hit you when you're in a coma.
The fact that you are considering an outside offer indicates you have some deep-seated issues with your current employer. You have two options.
or
^ Yes. Keep the savagery to your personal life. I am guilty of more or less the 2nd option here (to a smaller scale) and it's not a fun place to be. Luckily I doubled my comp but the 6 months leading up to that external offer was the most passive-aggressive political quagmire I've ever experienced. Not healthy. 10k isn't worth the trouble in your situation, imo
If the company that gave you an offer that is still below market, then you are an under performing or non-marketable asset. Stay with your current company, get more deals and experience, work hard and ask for a pay raise at your next performance review.
So you're saying turn down more guaranteed money and work hard and "hope for a raise" which might not even be that of the amount which he/she is turning down now, and hope they see the value?
Jesus Christ that's how you wake up at 35 years old with a mini van driving to a job you hate because know you know should be paid more for your skill set. Like American Beauty and Office Space combined, what is wrong with you?
I'm taking a pragmatic approach here, which usually makes me sound like a dick. Build your deal list and experience and leverage this into a position where you can make market or above market. I would not sabotage your network to go to a competitor that pays you an extra $10k per year.
So lets say your current gig offers match or greater, you'll probably run into issues during the next promotion/review cycle. They will know you have one foot out the door and anything that questions loyalty in banking--especially at the boutique level where culture/firm is run by personalities--will reflect poorly on you. During interim/year end reviews--as I'm sure you know from your experience in Big 4--is really a round table atmosphere where people plead your case for bonus/promote or slam you. Unless your work is top or bottom percentile, it comes down to company politics. The most senior guy at that table will move the needle. I'm speculating a bit, but I'd imagine the most senior guy would hear how you levered the firm by threatening to quit and it won't work in your favor.
If you like the other offer, take it and thank the boutique for giving you the opportunity. Tell them you enjoyed working with all the people there and you hope to do so again in the future. Word gets around and you want to leave unscathed.
Reading all of this reminds me how young you guys are on this site. I could flop my dick on the table and tell them to match it and nobody would bat an eye other than to match it or find an appropriate hole for me to stick it in that would make me happy.
I could give a fuck if someone questioned my loyalty. I got paid a lot precisely because they questioned my loyalty. If they thought I was loyal, why would they pay me much?
words of wisdom right here folks. Love it
So much this. They pay you the minimum they need to in order to get you to stay. Always keep them worried
Here is another approach to go about it.
First decide on a standalone basis if you want the new offer. Did you interview at this firm purely because of comp or are there other factors at your current firm that are making you look (lack of deal flow, limited analyst support, etc). If it purely comes down to money, this will be an easier decision.
At the associate level 10-20k is not very meaningful when compared to all in earnings. I would place a much higher value on culture and experience. If you work with a good group of people and are learning a lot, why risk going into the unknown for such a trivial amount? If you are up-tiering to a much better brand than its really a focus on brand vs comp.
I would just have a discussion with your firm about comp and mention that you know you are below street and would like a raise, which is merited by your work. Don't bring up the other offer at all. Just focus on the work you are doing here and why you believe you deserve the raise. This will give you an insight into their thought process on pay (and what you can expect in future) and also leaves you with outs as you haven't damaged the relationship by brining up the other offer.
If you don't like how things go you could always take the other offer after, but if they do raise pay you could stay without damaging the relationship.
why are you in IB if pay is that much below market?
If they match, you're obviously valuable to them. It's not your fault they under appreciated you. If they are willing to pay they agree with that. If they are an employer that would be "begrudging", you probably shouldn't be working for them in the first place.
Which is the career path you want to go?
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