Candidates

In addition to base salary earnings, bonuses are becoming an important component of real earnings. If you understand that your income is directly related to the amount of profit, savings, and production that you benefit your employer, it's easy to understand how bonuses can effect real income. Also note, individuals who earn in the high six figures, increasingly are compensated on a basis of low base income, with a progressive bonus opportunity.

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BEWARE OF THE "BUY-BACK" OFFER
Your whole career is at stake.

If you have accepted an offer from a new employer and, on giving notice to your present company, a "Buy-Back" offer is made, then you should consider the following:

Ask yourself, if you were worth "X" dollars yesterday, why are they suddenly willing to pay you "Y" dollars today? Consider the fact that your present employer may be "buying time" with this raise until he can locate a replacement for you.

Suppose you were given an annual raise of $7,200 as a "Buy-Back" offer. When the company finds your replacement, in say 60 days or so, then the actual cost to them may be as little as $1,200 (2 months at the $600/month salary increase)!

Is just more money going to change everything in your present job? Consider the new opportunity you will be giving up that looked so favorable when you accepted it.

You should also know that statistics compiled by the National Association of Personnel Consultants confirm the fact that over 80% of those people who accept "Buy-Back" offers and stay are no longer with their company six months later!

Carefully review in your mind all the reasons you wanted to make a job change in the first place. Does the "Buy-Back" offer really offset these reasons?

If you intend to seriously consider a "Buy-Back" offer, be sure to have all the details confirmed in writing by your employer. Consider all these facts very carefully before making a final decision. One mistake at any time could be costly to your professional growth!

Upon receiving a "Buy-Back" offer, few people logically consider why it occurred, and what the consequences will be if they accept it. Few realize that, by resigning their job to accept other employment, they have actually fired their company! Since it is customary for the company to fire employees, it is likely your supervisor will view your actions negatively. Imagine, if you will, what might go through a supervisor's mind when a key employee, like you, quits. Here are some realistic possibilities:

1. "Doesn't he realize that finding a replacement may take considerably
longer that his lousy two week notice?"

2. "Let's see, the Division Manager will want to know the out-of-pocket costs to replace this inconsiderate employee:

a) Since we only have two weeks, we'll have to use agencies instead of word-of-mouth and advertising. That means we'll have to pay and agency service charge.

b) We usually interview 6 candidates before hiring. With room, board, and airfare, that will average at least $1,000 each.

c) Chances are we'll have to relocate the new hire. Average cost of this for a family of four is around $35,000.

d) There are other expenses like mortgage differentials, training period or slow start-up costs, time lost on the part of our employees while interviewing prospective candidates, etc., but how do we figure the costs on those? I'll forget these costs for now and add up my real out-of-pocket expenses for the fee, interviewing, and relocation:

1. Fee for salary of $80,000                                      $24,000.00
2. Interviewing 6 candidates x $1,000                          6,000.00
3. Relocation Costs                                                      35,000.00
4. TOTAL OUT-OF-POCKET                                    $65,000.00

Wow! That's a lot of unbudgeted money to replace this employee. We could probably save it all if we just had time to find a replacement through normal channels on our own time schedule instead of TWO WEEKS!"

3. "Of course, I could buy time if I just matched the $7,200 increase offered by his new employer - that's only $600 per month more of our out of pocket expenses, and a far sight better than $65,000 in replacement costs! Won't my Division Manager be pleased if I pull this off!"

Considering the previous scenarios, what would you do if you were in the supervisor's shoes? Would you agree to pay at least $65,000 in out-of-pocket costs for a replacement? Or would you buy some time for your company (and yourself) by offering to match what the new employer is paying - at a cost of about $1,200? Which of these choices would please your Division Manager?
We can't say it enough: BEWARE OF THE "BUY-BACK"!

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SAMPLE ACCEPTANCE LETTER
(Address to who the letter is directed)

Dear Mr. Doe:

Thank you for your letter offering me a position as a Design Engineer at a starting salary of $60,000 per year. It is with pleasure that I accept your offer and confirm that I will start with you on (Date).

I look forward with anticipation to my association with XYZ Company and to contributing my abilities to your continued success.

Sincerely, (Your Name)

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SAMPLE RESIGNATION
(Address to who the letter is directed)

Dear Mrs. Soxx:

Please accept this as two (2) weeks formal notice of my resignation from the employ of ABC Manufacturing Company. My final date of employment will be (Date).

I was not seeking a new job. I was recruited for a lead marketing position with a major international company. My new employer would like to make the announcement to their organization first, therefore I am not at liberty to disclose their identity at this time. I will, however, make this information available to you as soon as possible.

I have thoroughly enjoyed the work environment and professional atmosphere here. Your management, direction, guidance, and counseling have been the source of great personal and career satisfaction to me. The experience and knowledge gained during my association with ABC has provided significant career growth for which I shall always be appreciative.

Sincerely, (Your Name)
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Using our assumptions, we've tracked the annual increases to ten years and determined the cumulative differences in earnings in five and ten years. Below are the differences after each year between your present job and the new job you are considering:

STARTING SALARY = $70,000 WITH 6% INCREASES

Years since start	Years after change	If you keep your present job (salary)	If you take the new job (salary)	Earnings increase by year	Earnings increase cumulative
3^rd	1^st	$78,652	$82,000	$3,348	$3,348
4^th	2^nd	83,371	86,920	3,549	6,897