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Assess John's job offer of a Customer Logistics Manager for

John has been working for Acme Company for 8 years. As a Team Leader, he has 4 direct reports (1 exempt and 2 non exempt) and is seen as a subject matter expert in customer logistics and order fulfillment. He interacts in meetings with others that are 3-5 levels higher than he is. His manager is 4 levels higher than he is, an impossible jump in grade leveling. He is very committed to progressing his career and wants to stay in his area of expertise. About 4 months ago, his Manager retired and they just filled the role with someone who did not have the level of experience to fully know the job as a developmental assignment- so he is training his boss. He is very frustrated and begins looking for another opportunity.

He interviews for and receives an offer for a Customer Logistics Manager role with a comparable company in a higher cost of living area. The role has 11 people reporting to it directly and indirectly (larger than his current department). Here is the offer:

Salary $20,000 increase from current salary
Benefits Comparable for medical, dental, vision
No 401 k match vs. a 50% match on first 4 % of contributions at his current role
He is 2 years from vesting for retiree medical at his current role
He is vested for retirement, it would take 5 years to vest in new Company
State taxes are an additional 8% in the new role's state
He has current equity in his home
The new company will allow him to move now (March) and relocate his wife and 2 kids (7 and 11 months) when school is out in June
Vacation and holidays are comparable

What should John do and why?

Solution Preview

This is a situation that occurs frequently in the workforce. A manager is brought in from the outside when qualified employees are located within the company's reach. Even though John has been working for Acme for 8 years, that does not mean he has the education "degrees" the company is ...

Solution Summary

John has been working for Acme Company for 8 years. As a Team Leader, he has 4 direct reports (1 exempt and 2 non exempt) and is seen as a subject matter expert in customer logistics and order fulfillment. He interacts in meetings with others that are 3-5 levels higher than he is. His manager is 4 levels higher than he is, an impossible jump in grade leveling. He is very committed to progressing his career and wants to stay in his area of expertise. About 4 months ago, his Manager retired and they just filled the role with someone who did not have the level of experience to fully know the job as a developmental assignment- so he is training his boss. He is very frustrated and begins looking for another opportunity.

He interviews for and receives an offer for a Customer Logistics Manager role with a comparable company in a higher cost of living area. The role has 11 people reporting to it directly and indirectly (larger than his current department). Here is the offer:

Salary $20,000 increase from current salary
Benefits Comparable for medical, dental, vision
No 401 k match vs. a 50% match on first 4 % of contributions at his current role
He is 2 years from vesting for retiree medical at his current role
He is vested for retirement, it would take 5 years to vest in new Company
State taxes are an additional 8% in the new role's state
He has current equity in his home
The new company will allow him to move now (March) and relocate his wife and 2 kids (7 and 11 months) when school is out in June
Vacation and holidays are comparable

What should John do and why?

$2.19