Increase in notice period - Advice please

bazc123

Hi all,

Some context for my question:
I'm working as an IT manager in a large PLC in Dublin. I'm earning approx. €54,000 with a 10% performance related annual bonus scheme. Working with them approx 14 years. Had a discussion with my manager about pay a couple of weeks ago as I felt I should be earning more. He came back to me yesterday to say that he had gotten approval for moving me from 10% bonus to 20% bonus scheme (bonus is dependant on my and company performance) but didn't increase my base pay.

My questions: The contract for me to sign around this also increases my notice period from 1 month to 3 months. I was surprised by this as I feel it makes me a lot less employable. I understand larger notice periods for very senior staff but I'm not at that level. Can anyone shed some light on the 3 month notice period? Is it a common notice length and do you think it impacts potential employer decisions if I was to apply to a different company at some point in the future? Is the 10% increase in bonus worth the increased notice?

For the record, I am well aware that I'm in a good position and there are people far worse off than me. This may seem to some that I'm complaining even though I'm in a secure job but I have a new family I need to look after so want to do everything I can to secure them. I just don't want to trap myself in current job.

Any help much appreciated.

Rulmeq

14 years experience in IT (and at least some as a manager!) you should be on at least €70k (If you go through the salary surveys you can get a more accurate figure, but I've picked a low figure as you seem to have low ambition - just based on the fact that you're earning what is a mid-level developer salary in Dublin).

Bonuses are great, but they are exactly that, a bonus (which the employer can grant, or revoke on a whim). You are being seriously under paid. The notice period only matters if you are contemplating moving (and that can be scary, especially when you've become institutionalised).

What you do about this is up to you, i can tell you that you will never get a raise as big as you do when you change jobs, but 14 years working has also built up a pretty decent redundancy figure that you would have to throw away. You should definitely be looking for more money (and you will need to keep going back year after year to them - to the point it become tedious and insist that they increase your salary - back it up with the figures from the salary surveys). If you sign up to 3 months notice, you will be giving away a pretty good bargaining chip (they know, nobody is going to be happy waiting 3 months for you, so they are actually making your bargaining position more difficult)

If it was me, I'd change, but I don't know if you are motivated enough to do that (you haven't given any of your other circumstances, and maybe you're happy to be earning far less than you could be)

cagefactor

Under no circumstances sign a 3month notice period. They are pulling a fast one with that. Your salary is low. I have 12 yrs experience and Im getting 90k. The reason your salary is low is as the previous poster said... Low ambition. Leave ASAP.

dubrov

54k is very low for an IT manager providing it is a real management role (managing people, budgets etc.) and not just a title as is common with a lot of consultancy firms.

The only way to know what you are worth is to dip your toe in the jobs market.

The 3 month notice period isn't really enforceable but be aware that any new employer would likely require a reference from your current employer. If you renege on the notice paid they may refuse you a reference.

Glass fused light

If you work in a large plc and are you handed a new contract each time you get a pay rise or are you just given a letter stating your new pay rate?

They are getting a good deal locking you in for an extra 2 months for no cash outlay. Unless you are expecting to be made redundant its of no benefit to you. The 3 months is enforceable but would cost too much to be economic for your current employer to do so. If you give short notice and a new employer finds out its not viewed as professional and you will always be a question mark when it comes to trust and acting in good faith.

If you have any additional benefits like a pension it's normaly calculated off your base pay excluding bonus, so you loose out long term. If you normaly only get a letter its a good indication that HR knows you are underpaid in the role. However your problem is that you don't know your replacement cost, and in any organisation making a big pay jump is hard as you have to prove added value, rather than replacement cost.

Teyla Emmagan

That's a rubbish deal, don't sign it. It will reduce your attractiveness to other employers for the sake of peanuts. You should be looking around for a new role to bring you in line with the market. This is both a fob off and an attempt to lock you in on your current low salary.

Pelvis

That's a poor deal and that is poor pay for the position.

I'd start looking for a new job. You'd be in a much stronger negotiating position if you had a job offer.

jim salter

To mirror the other posters, you are under paid for your role and industry.

Currently Dublin is in an IT boom and salaries are high (and on the rise).

I currently work in It in a similar role and earn significantly more with about half the experience.

Not sure on the 3 month leave requirement but there are ways around it. Also, another perspective : usually 3 month notice periods are reserved for key roles. May make you more desirable in potential employers eyes.

Your current employer will not bring you in line with current market rates.... Time to go

jon1981

bazc123 wrote: »

Hi all,
I just don't want to trap myself in current job.

Any help much appreciated.

You seem happy to be earning well below average pay for that role. You're there 14 yrs , what would make you leave as it's clearly not the salary? Sign the contract.

TheAnalyst_

Just shows you that loyalty is rarely rewarded. You really have to move around a bit to get your market value.

jimmycrackcorm

OP, you aren't even getting a pay raise. The bonus is not guaranteed. Your mad to stay when who could be earning at least another 25-30k plus bonus elsewhere

Treepole

"IT Manager" is a fairly broad term. Are you managing a team of people?

Misguided1

It sounds as though you are in a stronger position than you think.
If they are extending your notice period, they are afraid to lose you and consider you at risk of leaving.
Use it to your advantage and negotiate.
Explain that an increase in your variable pay is not attractive to you at this point and that you would only consider agreeing to the 3 month notice period if your salary was brought up to market rates.

It's hard to tell from the OP if you work in a specialised IT area or not. That would influence the market rate.
Worst case is that they say no, and you look for another job with 1 months notice.

purpleisafruit

TheAnalyst_ wrote: »

Just shows you that loyalty is rarely rewarded. You really have to move around a bit to get your market value.

I finished college 3 years ago as a mature student and have moved 3 times in that period. I earn significantly more than 54k. Only way to get the big pay rise is being willing to move. 54k for 14 years experience is vastly underpaid, even more so in Dublin with a booming IT market

TheAnalyst_

He could move somewhere for a few years and his old company would probably hire him to a higher role for double which he would have no chance getting if he applied from within. I've seen it happen.

bazc123

Really appreciate all the comments and advice guys. A lot of your points hit home and I definitely feel more aware. I was hoping to give good context but maybe was overly vague on 'IT Manager'. I was hired while in college as an IT Support technician. Have been the team lead there for most of my tenure and only became a manager last year ago after a company merger when new management said they saw potential in me to make positive change in the company. I'm only managing one person on my new team.

I'm not sure that I lack ambition - wanting job security (during recession, then wedding, last year a baby arrival and this year looking to get a mortgage) has been a big factor in me just staying in the same job. I appreciate getting called out though as it's given me a lot of food for thought. I'm not wanting to make excuses and taking all of the above on board. This has been my only job and I think I am probably institutionalised. Didn't know the grass was greener on the other side!

Again, really appreciate the feedback on the notice period and will turn the offer down.

Blown away so many of you are willing to take time from your days to advise me. Thanks so much!


Now to find my next adventure...

jim salter

bazc123 wrote: »

Really appreciate all the comments and advice guys. A lot of your points hit home and I definitely feel more aware. I was hoping to give good context but maybe was overly vague on 'IT Manager'. I was hired while in college as an IT Support technician. Have been the team lead there for most of my tenure and only became a manager last year ago after a company merger when new management said they saw potential in me to make positive change in the company. I'm only managing one person on my new team.

I'm not sure that I lack ambition - wanting job security (during recession, then wedding, last year a baby arrival and this year looking to get a mortgage) has been a big factor in me just staying in the same job. I appreciate getting called out though as it's given me a lot of food for thought. I'm not wanting to make excuses and taking all of the above on board. This has been my only job and I think I am probably institutionalised. Didn't know the grass was greener on the other side!

Again, really appreciate the feedback on the notice period and will turn the offer down.

Blown away so many of you are willing to take time from your days to advise me. Thanks so much!


Now to find my next adventure...

The best of luck with whatever you decide...maybe update the thread?

KERSPLAT!

Best of luck!

Glass fused light

bazc123 wrote: »

Again, really appreciate the feedback on the notice period and will turn the offer down.


Now to find my next adventure...

Don't turn down the offer, counter offer, reject the 3 month notice, look for the bonus to be paid on a quarterly basis, and look for an additional basic uplift too.

If you are negotiating remember if you use a job offer be prepared to move as HR will be aware that most people move with in a year of this tactic.

When you say positive change, were you a change ambassador or project manager and did you control or manage a budget. It's good for the cv. if you need to get certs see if the current company's prepared to fund it.

helimachoptor

I'd move. The reality is that yours signing up to a 2 months longer notice period for 2750 in actual cash. Move on

factnee

Just bear in mind that when you're there more than 15 years, you'll have to give eight weeks notice. I agree with the other posters. Get out ASAP - you're being grossly underpaid.

dubrov

factnee wrote:

Just bear in mind that when you're there more than 15 years, you'll have to give eight weeks notice.

Not if his contract states a shorter notice period

Eoin

factnee wrote: »

Just bear in mind that when you're there more than 15 years, you'll have to give eight weeks notice.

That's what employees are entitled to, not employers.