Determining my actual salary

[cai24]

I was wondering if someone could help me with a salary question. I have been contemplating leaving my current job for an offer that I just received. I don't make very much money, and I am trying to figure out if this offer is comparable to what I am making now. Right now, I am earning about $41K per year. I just received a job offer for $35K, which I thought was a little low. It's the same job I am doing now, but I think this new company will be a better fit for me. I just wish the base pay wasn't $6K less. However, since I am non-exempt, I am eligible for overtime. I would be working 42 hours per week. Would I be paid overtime for these additional two hours? Also, there would be a 10% shift differential involved. I think it starts at 5:00 PM, but I have to double check. If this is the case, 7 hours of my shift would be eligible for the differential. There is also up to $12K in incentive pay available, but in reality, I probably would only earn $2-5K. Could someone explain to me how these numbers compute? Do the numbers justify me making a switch?

 

Just to summarize, this is my situation:

 

At my current job, I work a 40 hour week and earn $19.23 per hour. I also usually receive $1K per year in incentive pay. Basically, this amounts to $41K. For the offer I just received, they offered me $35K. I am non-exempt, so that would be converted to an hourly wage (~$16.83/hour). It's a $6K difference, but the following aspects of this offer would narrow the gap:

 

1. I would be working 42 hours instead of 40. I'm assuming that since I'm non-exempt, I would earn overtime pay for these two additional hours. (Not sure if this is correct or not, but I am under the impression that overtime is effective once 40 hours are exceeded.)

 

2. There is a 10% shift differential that I would be paid. I think that 28 of my 42 weekly hours would be eligible for the differential. I don't know how the differential works in conjunction with the overtime.

 

3. There is up to $12K in incentive available. I don't really know the parameters and how easy it is to earn. I would certainly try to earn as much as possible, but I'm not sure what is realistic.

 

I appreciate any input, and I am sorry if this is a dumb question!

[tomb]

Using your assumptions:

 

35 k base for 52 weeks

2,625 OT

2,459 shift differential

----------

40,075 annually before any incentives

 

Ignoring any shift differential on OT (which is at most 262.50/yr)

Ignoring the fact that you won't make OT or shift differential on time paid time off) about 200 bucks

 

So, I'd say roughly equal before incentives

 

Since there is a firm offer on the table, it wouldn't be out of line to discuss the likelihood of incentive payments. Of course, they can't promise, but they should be able to give you an idea based on say, a typical first year employee...

[PhoenixDown]

Are the incentives based on personal, work group, or company wide performance? It might be a combination.

 

If its based on group or company performance - you can prob ask if goals were met in prior years and what Percentage of the once give was paid out.

[cai24]

Using your assumptions:

 

35 k base for 52 weeks

2,625 OT

2,459 shift differential

----------

40,075 annually before any incentives

 

Ignoring any shift differential on OT (which is at most 262.50/yr)

Ignoring the fact that you won't make OT or shift differential on time paid time off) about 200 bucks

 

So, I'd say roughly equal before incentives

 

Since there is a firm offer on the table, it wouldn't be out of line to discuss the likelihood of incentive payments. Of course, they can't promise, but they should be able to give you an idea based on say, a typical first year employee...

Thank you so much for breaking this down for me! I really appreciate it.

[cai24]

Are the incentives based on personal, work group, or company wide performance? It might be a combination.

 

If its based on group or company performance - you can prob ask if goals were met in prior years and what Percentage of the once give was paid out.

I think that they are based on personal performance. That is the way that it sounded based on what I was told at the interview.

[sts7049]

if i were you i would also ask directly about the ~2hrs overtime to be sure. i don't know how that works personally, but can't hurt to ask.