Can't afford a new job?
Discussion
I'm currently at mid level team management and have been offered/am being pushed into a more senior job as the head of the department across all sites in the business.
However, I don't think I can afford it (sounds stupid huh?).
The offer on the table is the job, an insignificant salary increase and a company car allowance - with the company car allowance being the main selling point it seems.
Ignoring the salary for a sec, it's the company car allowance that I don't think I can make work, for reasons below:
1) We already have 2 cars in the household, mine and SWMBO's, both of which are too old to be used as the company car (has to be 6 years or younger).
2) I can't sell my car as its a recent purchase so I'm tied into an existing agreement. The other car isn't worth selling as its valued at under £500.
3) We're saving for a house. Even if I could fund another car for work through the scheme (assuming we keep the 2 cars also), I couldn't justify the cost of the initial payment on a lease or the added cost of insurance/maintenance.
4) I don't want another car.
Currently there is a "pool car", so whenever I need to visit other sites or customers, I book it out in advance and it works very well. However, due to a change in policy, the pool car isn't being retained.
So after some "what would you do" thoughts really. I've never had a company car/car allowance before, so I'm not sure if I'm missing a trick.
I'm not a career person per se, so job title and "power" isn't be be all and end all.
I enjoy my current job and it funds my lifestyle, so I'm struggling to see the benefits of the offer on the table.
Taa,
NM.
However, I don't think I can afford it (sounds stupid huh?).
The offer on the table is the job, an insignificant salary increase and a company car allowance - with the company car allowance being the main selling point it seems.
Ignoring the salary for a sec, it's the company car allowance that I don't think I can make work, for reasons below:
1) We already have 2 cars in the household, mine and SWMBO's, both of which are too old to be used as the company car (has to be 6 years or younger).
2) I can't sell my car as its a recent purchase so I'm tied into an existing agreement. The other car isn't worth selling as its valued at under £500.
3) We're saving for a house. Even if I could fund another car for work through the scheme (assuming we keep the 2 cars also), I couldn't justify the cost of the initial payment on a lease or the added cost of insurance/maintenance.
4) I don't want another car.
Currently there is a "pool car", so whenever I need to visit other sites or customers, I book it out in advance and it works very well. However, due to a change in policy, the pool car isn't being retained.
So after some "what would you do" thoughts really. I've never had a company car/car allowance before, so I'm not sure if I'm missing a trick.
I'm not a career person per se, so job title and "power" isn't be be all and end all.
I enjoy my current job and it funds my lifestyle, so I'm struggling to see the benefits of the offer on the table.
Taa,
NM.
North3rn Monk3y said:
I'm currently at mid level team management and have been offered/am being pushed into a more senior job as the head of the department across all sites in the business.
However, I don't think I can afford it (sounds stupid huh?).
The offer on the table is the job, an insignificant salary increase and a company car allowance - with the company car allowance being the main selling point it seems.
Ignoring the salary for a sec, it's the company car allowance that I don't think I can make work, for reasons below:
1) We already have 2 cars in the household, mine and SWMBO's, both of which are too old to be used as the company car (has to be 6 years or younger).
2) I can't sell my car as its a recent purchase so I'm tied into an existing agreement. The other car isn't worth selling as its valued at under £500.
3) We're saving for a house. Even if I could fund another car for work through the scheme (assuming we keep the 2 cars also), I couldn't justify the cost of the initial payment on a lease or the added cost of insurance/maintenance.
4) I don't want another car.
Currently there is a "pool car", so whenever I need to visit other sites or customers, I book it out in advance and it works very well. However, due to a change in policy, the pool car isn't being retained.
So after some "what would you do" thoughts really. I've never had a company car/car allowance before, so I'm not sure if I'm missing a trick.
I'm not a career person per se, so job title and "power" isn't be be all and end all.
I enjoy my current job and it funds my lifestyle, so I'm struggling to see the benefits of the offer on the table.
Taa,
NM.
Sell the crap car, get the car allowance. Spend the £500 on a weekend away.However, I don't think I can afford it (sounds stupid huh?).
The offer on the table is the job, an insignificant salary increase and a company car allowance - with the company car allowance being the main selling point it seems.
Ignoring the salary for a sec, it's the company car allowance that I don't think I can make work, for reasons below:
1) We already have 2 cars in the household, mine and SWMBO's, both of which are too old to be used as the company car (has to be 6 years or younger).
2) I can't sell my car as its a recent purchase so I'm tied into an existing agreement. The other car isn't worth selling as its valued at under £500.
3) We're saving for a house. Even if I could fund another car for work through the scheme (assuming we keep the 2 cars also), I couldn't justify the cost of the initial payment on a lease or the added cost of insurance/maintenance.
4) I don't want another car.
Currently there is a "pool car", so whenever I need to visit other sites or customers, I book it out in advance and it works very well. However, due to a change in policy, the pool car isn't being retained.
So after some "what would you do" thoughts really. I've never had a company car/car allowance before, so I'm not sure if I'm missing a trick.
I'm not a career person per se, so job title and "power" isn't be be all and end all.
I enjoy my current job and it funds my lifestyle, so I'm struggling to see the benefits of the offer on the table.
Taa,
NM.
Would you really not be able to drive your own car if its reliable? Ive not personally heard of a company enforcing a minimum age of vehicle - what if you cant afford to change?
Depends on how insignificant the move would be overall - not just salary - will it get you places later on?
I found taking a company car messed up my tax for years. The company said it was my fault for not telling HMRC mid year, but then they also failed to tell them the year after. I was young and didn't control my tax, thought PAYE would sort it all out for me.
If you don't need one, take the cash instead. Only problem might be is that if the pool car isnt available you might have to pay out of your own cash to visit the customers. Ive seen companies make that point several times.
If you don't need one, take the cash instead. Only problem might be is that if the pool car isnt available you might have to pay out of your own cash to visit the customers. Ive seen companies make that point several times.
p1stonhead said:
Sell the crap car, get the car allowance. Spend the £500 on a weekend away.
Would you really not be able to drive your own car if its reliable? Ive not personally heard of a company enforcing a minimum age of vehicle - what if you cant afford to change?
Depends on how insignificant the move would be overall - not just salary - will it get you places later on?
Get your points, but SWMBO can't drive my car (she's a new driver), so getting rid of the crapper and getting a lease doesn't help as she'll be stuck for transport.Would you really not be able to drive your own car if its reliable? Ive not personally heard of a company enforcing a minimum age of vehicle - what if you cant afford to change?
Depends on how insignificant the move would be overall - not just salary - will it get you places later on?
Job is going from a fixed place of work to "significant" travel and rather than managing a single team it will be the department. However I have no problem with that, other than not being able to fit the company car allowance in somewhere.
Will it get me places later on? How big is a piece of string, I'm in my late 20's so my priority at the mo is a house more than anything, I don't want any extra outgoings!
Edit: can I drive my car - assuming the age of car doesn't matter, maybe. So I suppose that's the next question. However, it's modified, not insured for business use and I'd be devaluing the car by putting a considerable amount of mileage on it.
Edited by North3rn Monk3y on Tuesday 7th June 12:48
I would consider getting rid of the £500 car and using the Company Car.
Although a car allowance is much better and doesn't mess with your tax half as much.
I was getting nearly £400 at my last company for a car allowance and there were no restrictions on age etc as long as it was reliable. I don't think any decent company really cars.
I got a job offer for another company fairly recently which would have resulted in a net decrease in salary due to the company car - I turned it down. A lot of companies seem to think a company car is a good offer but in reality it's not because you get the pleasure of driving around in a diesel Passat which isn't actually yours anyway.
Although a car allowance is much better and doesn't mess with your tax half as much.
I was getting nearly £400 at my last company for a car allowance and there were no restrictions on age etc as long as it was reliable. I don't think any decent company really cars.
I got a job offer for another company fairly recently which would have resulted in a net decrease in salary due to the company car - I turned it down. A lot of companies seem to think a company car is a good offer but in reality it's not because you get the pleasure of driving around in a diesel Passat which isn't actually yours anyway.
xjay1337 said:
I would consider getting rid of the £500 car and using the Company Car.
Although a car allowance is much better and doesn't mess with your tax half as much.
I was getting nearly £400 at my last company for a car allowance and there were no restrictions on age etc as long as it was reliable. I don't think any decent company really cars.
I got a job offer for another company fairly recently which would have resulted in a net decrease in salary due to the company car - I turned it down. A lot of companies seem to think a company car is a good offer but in reality it's not because you get the pleasure of driving around in a diesel Passat which isn't actually yours anyway.
I should clarify that I don't have an option of a company car - its a cash allowance only. The pool car is being phased out and they no longer have a company car scheme.Although a car allowance is much better and doesn't mess with your tax half as much.
I was getting nearly £400 at my last company for a car allowance and there were no restrictions on age etc as long as it was reliable. I don't think any decent company really cars.
I got a job offer for another company fairly recently which would have resulted in a net decrease in salary due to the company car - I turned it down. A lot of companies seem to think a company car is a good offer but in reality it's not because you get the pleasure of driving around in a diesel Passat which isn't actually yours anyway.
Totally agree though. A benefit is only a benefit if you benefit from it (does that make sense?! ha.). Feels like I'm making the sacrifices for a job they're trying to push me into.
Two things to consider...
Tell them to waive the age restriction so you can use the car allowance (which BTW is subject to tax and NI so is really just salary) to fund your existing motor.
Or tell them you don't want the car allowance but will take the equivalent in salary instead. Which AFAIK won't make any difference to you but may cost them more for reasons I don't recall yet. Employers NI possibly.
Tell them to waive the age restriction so you can use the car allowance (which BTW is subject to tax and NI so is really just salary) to fund your existing motor.
Or tell them you don't want the car allowance but will take the equivalent in salary instead. Which AFAIK won't make any difference to you but may cost them more for reasons I don't recall yet. Employers NI possibly.
It sounds like you don't really want the job, so decline the offer, or ask them to amend the terms so that they are attractive to you.
Whether that is extra money, a car allowance or whatever is up to negotiation.
BTW, will you actually need to travel on Business? I received a company car allowance for years and only drove myself on business about four times - and could have paid for a hire car if I didn't have transport that met the criteria of the employer.
Whether that is extra money, a car allowance or whatever is up to negotiation.
BTW, will you actually need to travel on Business? I received a company car allowance for years and only drove myself on business about four times - and could have paid for a hire car if I didn't have transport that met the criteria of the employer.
Don't forget being a manager/head of department means
Basically no downtime. you will be expected to work your evenings and days off although this may not be said verbally.
Pressure to manage staff who may be little t
ts and under perform anyway but this suddenly becomes your fault.
Annoying your co-workers and you were "one of them" and now you're "the enemy" (management).
It may be a good chance to get some managerial experience, if the team rapport is good then it may work out well. Can you discuss with close co-workers, ask for their honest opinion and how they would feel if you were to step up to team leader?
I know at previous places of work people have been promoted to manager without any sort of discussion from the team of which they originated from much to the annoyance of some members of said team.
Basically no downtime. you will be expected to work your evenings and days off although this may not be said verbally.
Pressure to manage staff who may be little t
ts and under perform anyway but this suddenly becomes your fault.Annoying your co-workers and you were "one of them" and now you're "the enemy" (management).
It may be a good chance to get some managerial experience, if the team rapport is good then it may work out well. Can you discuss with close co-workers, ask for their honest opinion and how they would feel if you were to step up to team leader?
I know at previous places of work people have been promoted to manager without any sort of discussion from the team of which they originated from much to the annoyance of some members of said team.
sideways sid said:
It sounds like you don't really want the job, so decline the offer, or ask them to amend the terms so that they are attractive to you.
Whether that is extra money, a car allowance or whatever is up to negotiation.
BTW, will you actually need to travel on Business? I received a company car allowance for years and only drove myself on business about four times - and could have paid for a hire car if I didn't have transport that met the criteria of the employer.
Thats a good question, I imagine there will be an initial bout of travel that will die down, but it's speculative.Whether that is extra money, a car allowance or whatever is up to negotiation.
BTW, will you actually need to travel on Business? I received a company car allowance for years and only drove myself on business about four times - and could have paid for a hire car if I didn't have transport that met the criteria of the employer.
Hadn't thought of a hire car.. £20 get's me a hatchback for a day
xjay1337 said:
Don't forget being a manager/head of department means
Basically no downtime. you will be expected to work your evenings and days off although this may not be said verbally.
Pressure to manage staff who may be little tts and under perform anyway but this suddenly becomes your fault.
Annoying your co-workers and you were "one of them" and now you're "the enemy" (management).
It may be a good chance to get some managerial experience, if the team rapport is good then it may work out well. Can you discuss with close co-workers, ask for their honest opinion and how they would feel if you were to step up to team leader?
I know at previous places of work people have been promoted to manager without any sort of discussion from the team of which they originated from much to the annoyance of some members of said team.
I'm fortunate enough to have the backing of the MD's and the team I currently manage, so no issues there I don't think. Also have relevant qualifications and experience, so the managing aspect doesn't really phase me.Basically no downtime. you will be expected to work your evenings and days off although this may not be said verbally.
Pressure to manage staff who may be little t
ts and under perform anyway but this suddenly becomes your fault.Annoying your co-workers and you were "one of them" and now you're "the enemy" (management).
It may be a good chance to get some managerial experience, if the team rapport is good then it may work out well. Can you discuss with close co-workers, ask for their honest opinion and how they would feel if you were to step up to team leader?
I know at previous places of work people have been promoted to manager without any sort of discussion from the team of which they originated from much to the annoyance of some members of said team.
My biggest concern really is with the pressure and expectation from peers and co-workers that already assume I'm taking the job. It was advertised internally, so everyone has the job spec/salary and benefits visible (something I'm not overly happy about, but hey ho), so if I do end up turning down the job and staying in my current role, it will be mighty awkward.
bmwmike said:
Two things to consider...
Tell them to waive the age restriction so you can use the car allowance (which BTW is subject to tax and NI so is really just salary) to fund your existing motor.
Or tell them you don't want the car allowance but will take the equivalent in salary instead. Which AFAIK won't make any difference to you but may cost them more for reasons I don't recall yet. Employers NI possibly.
A car allowance is just additional salary, but won't be pensionable (i.e. your employer won't count it when calculating pension contributions/accrual). The tax and NI cost for you and your employer is no different between salary and allowance.Tell them to waive the age restriction so you can use the car allowance (which BTW is subject to tax and NI so is really just salary) to fund your existing motor.
Or tell them you don't want the car allowance but will take the equivalent in salary instead. Which AFAIK won't make any difference to you but may cost them more for reasons I don't recall yet. Employers NI possibly.
In your position I would take the job. Whilst the gain may seem marginal now, the long term benefit to your earning prospects (either within this role or when moving on) is likely to be significant.
Edited by schmunk on Tuesday 7th June 14:43
You have to decide on your risk/reward tolerance. I think the car issue is a slight red herring in the scheme of things. If you're ambitious, then every opportunity should be seriously considered. If you're less so, and as you have intimated, the reward for this move is not convincing enough for you, then maybe you should sit tight. You will also have a better understanding of the company's financial position to be able to decide if they're short-changing you here. If money isn't tight and you will be adding real value in this new role, then start negotiating.
Good luck!
Good luck!
rog007 said:
If money isn't tight and you will be adding real value in this new role, then start negotiating.
^^^ This. But if a manager at your new level is expected to be seen in a particular type of car then make sure that's what you're willing to do - one way or another. Can't expect the company to change its "policies" to suit your specific wishes but you can expect to negotiate a pay and benefits package which offers you suitable reward for your work. In other words, if they increase your salary a bit that's not some thing other people can see. If they let you off the company car rules it will stand out a country mile.
Just to throw a spanner in the works and focus on a different point...
You've mentioned you need to travel for business sometimes and have the use of the pool car. If the pool car is being phased out, what are you going to do when you need to travel for work?
Will you be required to use public transport, your own car or a different vehicle supplied by them such as a hire car?
Just thinking, if you stay in your current role will you need to be making car changes anyway to meet the requirements of your employer?
You've mentioned you need to travel for business sometimes and have the use of the pool car. If the pool car is being phased out, what are you going to do when you need to travel for work?
Will you be required to use public transport, your own car or a different vehicle supplied by them such as a hire car?
Just thinking, if you stay in your current role will you need to be making car changes anyway to meet the requirements of your employer?
ashleyman said:
Just to throw a spanner in the works and focus on a different point...
You've mentioned you need to travel for business sometimes and have the use of the pool car. If the pool car is being phased out, what are you going to do when you need to travel for work?
Will you be required to use public transport, your own car or a different vehicle supplied by them such as a hire car?
Just thinking, if you stay in your current role will you need to be making car changes anyway to meet the requirements of your employer?
This also crossed my mind...You've mentioned you need to travel for business sometimes and have the use of the pool car. If the pool car is being phased out, what are you going to do when you need to travel for work?
Will you be required to use public transport, your own car or a different vehicle supplied by them such as a hire car?
Just thinking, if you stay in your current role will you need to be making car changes anyway to meet the requirements of your employer?
North3rn Monk3y said:
This also crossed my mind...
If it was me, I'd be finding the answers to the pool car questions as perhaps you wouldn't be able to continue working for them if you didn't change your circumstances. It then helps you to make a better, fully informed decision about your car as you might need to change anyway as there won't be a pool car.Separately to that I'd be calculating the salary on offer (minus any benefits such as car etc..) compare it with a similar position if hired externally and see how it stacks up. Then there's always room for negotiating, you're in house, you know the business, no training period etc...
Being a manager is a whole lot of extra work which I'm sure you appreciate so don't just think a raise of X% will cover the extra responsibilities. To be promoted to a management position from an underling I'd be looking for a much larger salary raise (XX%) than your average yearly increase...
Also, be prepared and aware that you may have to leave if you don't take the job - going from your previous posts about everyone expects you to take it and it would be awkward if you didn't. Also, just thinking they advertised all the salary and benefits in the ad so now all of your subordinates know how much you earn... (In my last salaried employment we weren't allowed to talk about pay or benefits with other members of staff).
Edited by ashleyman on Tuesday 7th June 23:02
Gassing Station | Finance | Top of Page | What's New | My Stuff