Key Takeaways

  • A $12,000 increase in salary can be substantial enough to accept a job offer, but do the math to consider any potential loss in benefits.
  • You might consider accepting the offer if it advances your career or if it’s a better professional fit for you.
  • Avoid accepting the offer based on salary alone, especially if you have to move for the job or give up seniority and professional perks.

Getting a job offer is always thrilling, especially if it comes with the opportunity to earn $12,000 more than your current role. As inflation tends to push the cost of living higher over the years, earning more money can help your finances, allowing you to stay ahead of rising prices.

However, before you accept that job offer based on the increased salary alone, consider some vital factors to decide if it’s the right career move for you. We’ll help you weigh things like your career goals, work-life balance, and the value of benefits, so you can make a decision you won’t regret.

Salary Bump vs. Stability: What You Gain—and Risk—by Changing Roles

Anytime you receive a new job offer, consider weighing the benefits and drawbacks of accepting the offer, particularly if it means uprooting your life by relocating for the role.

Advantages

  • An extra $12,000 per year in income can boost your finances. But the impact depends on your current salary. Earning more income could help you reach financial goals like paying down debt, saving for a large purchase, or funding your retirement account.
  • May advance your career. A $12,000 salary bump could be a fantastic benefit of accepting a job you’ve earned through hard work and experience. Plus, taking the job could move you closer to even better promotions.
  • Learn new skills, making you more marketable. If you’ve had the same job for a while, you might want more challenges and opportunities to grow professionally. Accepting a new job can provide valuable training that enhances your overall skillset.
  • Better benefits. In addition to the extra bump in pay, you might also receive benefits like a 401(k) with employer-matching, vacation time, health and life insurance.
  • Better work-life balance. Consider whether the job allows you to work remotely or assist in setting your schedule. Plus, the demands of the new role could improve your work-life balance.

Disadvantages

  • You may lose seniority. If you’ve been in your current position for a while and risen through the ranks, changing roles or companies may mean starting fresh again.
  • The new role may not be the right fit for you. Changing your job and the company you work for means transitioning to a work culture or environment that may not be a good fit for you.
  • Moving costs might offset the salary increase. Relocating due to a new job can cost thousands of dollars. Find out if the company pays for moving costs. You might do the math and determine it doesn’t work.
  • Your work-life balance may suffer. If the new role has more work expectations that cut into your home life, you might decide $12,000 isn’t enough to take the job.
  • May lose valuable benefits. If you’ve been at your current job for a while and have earned perks like four weeks of vacation time, your new role might only offer two weeks, making the offer less attractive if time off represents a priority for you or your family.

Thinking About a Job Change? Key Factors to Weigh First

A salary bump of $12,000 might be worth it for some people to change jobs, while it’s not enough incentive for others. To help you determine whether it’s the right financial and career move for you, ask yourself the following questions:

  • How much do I enjoy my current job? If you’ve been actively applying and looking to make a move, you’re probably more inclined to accept. But, if you love your job and are only considering changing because of the pay bump, you may regret it later if the job isn’t a good fit.
  • Would I have job security? This can be especially important if you’ve gained tenure or gone up in the ranks at your current job. When you start a new role, you’re essentially resetting your job security, and if the company struggles, you may find yourself in a precarious position.
  • What benefits would I gain or lose? If you’re losing valuable benefits like health insurance, a group life insurance policy, paid time off, or an employer-matched 401(k), the higher salary might not actually make up for the value of benefits lost. Carefully read your offer of employment with this in mind.
  • How much additional profit will I see after taxes? At first glance, $12,000 sounds like a lot, but play around with income tax calculators to see how much take-home pay this translates to. You may even want to see how much this works out to be for each paycheck.
  • What are my career goals? Would this move help you achieve the next stage of your career plan, would it derail your efforts, or are you unsure how long you would even want to stay in the role? Taking an honest look can help you determine whether accepting the role is best for your career.
  • If you have to move, what is the cost of living in the new location? $12,000 might go far in some states, but really isn’t much in others. Pull up the cost of living data in the area where you would relocate and see if the job offer is competitive enough for the area.
  • Will you face new expenses after your move? Factor in every little expense you may incur, like higher commuting costs and parking. Since your time is invaluable, don’t forget to factor your commute time into your decision.

Examples

Let’s consider a job offer that includes a $12,000 salary bump, examining it from a few different perspectives. The first is extended to someone who’s been with their company for over a decade. Their company includes a 4% match to his 401(k), and they enjoy health insurance and an inexpensive group life policy. The new job is similar to their current role, but it’s in a neighboring state where the cost of living is significantly higher.

They decide that $12,000 is not worth the loss of benefits and the costs of moving to take a job that’s essentially a lateral career move, so they decline the offer.

Now, let’s consider that offer made to someone who’s only been with their company for a year, so they haven’t accumulated seniority or benefits like paid time off. The job offer would actually be a step up in terms of job expectations, which could help them meet their next career goal. Plus, since they’re earning an entry-level salary, $12,000 is a significant boost to their income, allowing them to pay off their student loans faster. They accept the offer.

Tip

If it’s been a while since you received a raise or you’ve taken on more responsibilities in your current job, consider renegotiating your salary. You may be able to leverage your higher offer to get a better salary without moving jobs.

The Bottom Line

Whether a $12,000 salary increase is worth accepting a new role depends on your unique professional and financial situation. Take an honest look at your finances, expenses, job expectations, and the benefits you currently receive before deciding whether or not to accept the offer. If you’re struggling to crunch numbers, consider working with a trusted financial advisor who can help you research expenses you might be forgetting.