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I am currently an intern at a small consulting firm, and we do primarily web design. It's time for me to graduate and I've spoken with my boss and they want to keep me on.

The problem comes in with what I was offered. I was offered a pay rate that is considerably lower than the <10% quartile for the position reported by Salary.com for my area, and no benefits. (i.e., 10% of people were making 46,536 or less, the offer was considerably less than 46k). This comes after a performance review where my boss told me I was the best person on the team. I however have another opportunity. Our biggest client is desperately wanting to hire one of us, and is offering a very nice salary (like double what my boss is offering me). Is it ethical to leave this company (which I've enjoy up to this point) and work for our (currently) biggest client?

Edit:
I have spoken with some of my other co-workers who were just recently elevated, they received similarly low offers, but they accepted them.

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2  
Definitely jump on the better offer. – TimJ Apr 11 '11 at 15:32
1  
If all of it is "know" there are no ethical considerations. This was unclear in the original post. Based on the added clarification that there is not a personal offer, and the standing offer is know to his boss -- it might be worthwhile to make sure that the standing offer is personally available and the exact amount before making any jumps. It might also be worth assuming that the internal offer was made in full awareness that it underbids the external. If I offer someone half of what I know they can get somewhere else -- performance reviews aside -- I am sending a pretty strong message – Joseph Barisonzi Apr 11 '11 at 15:57
This is a good question and you got some good answers, but unfortunately, we're trying to keep this site specifically about issues faced by startup businesses, so I'm going to have to close it. – Joel Spolsky Apr 12 '11 at 2:42

closed as off topic by Joel Spolsky Apr 12 '11 at 2:40

Questions on Answers OnStartups are expected to relate to startups within the scope defined in the FAQ. Consider editing the question or leaving comments for improvement if you believe the question can be reworded to fit within the scope. Read more about closed questions here.

5 Answers

up vote 4 down vote accepted

What is the most important strength that you have? Think about this very carefully for a few seconds.

And here is the answer. The most important strength that you have is... YOUR AGE. You have all the time in the world to get better at anything you want to. Employers know this, but you don't. Why? Because young people don't consider youth as an asset. However, youth is the most important asset in the world. With time you can do anything. If you don't have time, you can't do shit.

Why is this important? Think about Warren Buffett. His first serious job was working for Graham for FREE. Why did he do it for FREE? (actually, virtually free). Because he knew he was in the right place to learn and become a good financial analyst. He realized that he had all the time in the world to make money. He could have gone work with other people and make more money in the short term... but the long term is a different story.

Contrary to what somebody said here, this is NOT a critical decision in your life. As a matter of fact, I hope that you make many wrong decisions NOW, because the more you fail NOW, the smarter you'll become. There is no such thing as a wrong decision when you are in your 20s. They are simply invaluable learning experiences. When you turn to 30s, or 40s, or 50s, then and only then it is when you can't afford a mistake. Until then, by all means, make decisions, as carefully as possible, but don't worry too much about failure. To try and fail is always better than fail to try.

Let's apply this framework to your situation and forget about the money and Salary.com. Think about the big picture. Think about the forest and not the trees. Where would you be able to learn more? In your current shitty paying job or in the big company? Where do you think you could grow faster as a person and as a professional? Where would you have more responsibilities, more EXPOSURE AND VISIBILITY? I know of many smart people who work in cubicles in big corporations and have no visibility whatsoever. The result? They are stuck in the same position they were 5 years ago.

As for the money, well, how old are you? How many projects have you completed that could justify a, say, $45K salary or more? These are just questions that your employer probably has considered. How many other serious offers do you have?

And now, my suggestions:

1- You could tell your boss that you'll take the job but you want a performance review in 3 months (meaning a salary review). 2- You could tell your boss you'll take the job but you want an incentive plan based on specific milestones. This is a win-win. The more successful projects you complete, the more you get paid. 3- You could always take the job, maybe agree with your boss to work less hours (who says you need to be in the office 40 hours to meet all deadlines?) and keep looking for another one! Forget about ethics for gods sake. You have to take care of yourself. Nobody in the world is going to take care of you but YOU!

However, if you do take the job, whining, bitching and complaining is not allowed. You take it and you give your best and don't use your low salary as an excuse for poor performance.

Also, honesty with your boss is critical. He has probably dealt with many many people like you before so he is more experienced in these situations than you. I would explain to him exactly how you feel, in a candid and straight forward way. No drama, no emotions. If he is reasonable, he will understand how you feel. If he doesn't, that's a red flag for me.

Finally, web design is a tough industry... unless you have some really cool projects to show off. It can easily be outsourced to other countries. This could be an opportunity for you to lead some projects, make a name for yourself, and then ask for more money to this boss or the next one. But first you need a portfolio of really good projects (you may have it already, I don't know).

I wish you all the best, and keep us updated. I'd like to know what happens with this :)

Take care and good luck.

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Very good post. – NetTecture Apr 11 '11 at 16:39
One can learn far more in a large company than your answer implies. Large companies also offer a wide variety of positions, departments, etc. Walk away form the low paying job - go work for someone who knows the value of a good worker. – TimJ Apr 11 '11 at 21:10

I would think very carefully about how to manage this critical professional decision. There is no need for you to burn a bridge so early in your career. You need to step wisely. It is not just about the money.

The company that offered you the job has put you in a tough spot. And for someone just getting going I would propose that they have put you in an unfair spot. You (and I) do not know the nature of the contract they have with the firm that you are working. It is rare that a consulting firm would not have language in their agreement which either prohibited the hiring of their staff (even an intern) or laid out conditions under which it would be allowed. These conditions usually include paying the consulting firm a percentage of your salary for a period of time. This is the "placement" firm model.

You can appreciate their concern. A consulting firm can not survive if their clients strip mine their talent. Basically removing them as the "middle man" in the process.

I believe that when you were offered a position by your employers biggest client you had an ethical responsibility to inform your employer of the offer. You can tell them that you would like to consider it and request their guidance on the company policy concerning this.

At the same time there is no reason to create any friction with the company that offered you the position. I would contact them immediately and tell them that you need to inform your current employer of their offer. Give them an opportunity to inform your employer directly of their interest in securing your employment with them.

This issue -- like most surrounding conflicts of interest -- do best when there is disclosure. You need to disclose to your employer. You need to disclose to the company making the offer that you need to disclose to your employer.

The risk? The risk -- the worst case scenario -- is that the "light" on the situations makes the offer go away. If that is the case-- then neither company is one that you would want to make your first employer as you launch your career.

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I don't think I made myself perfectly clear. They haven't offered me a job personally, rather, there is a standing offer for any intern from our company to go to work for them. My boss is aware of this standing offer, but nothing in my work contract or their business agreement specifically prohibits it. – user9311 Apr 11 '11 at 4:22
Awesome clarification! – Joseph Barisonzi Apr 11 '11 at 5:00
How is that burning a bridge? Clearly he is not valued a the current employer so it will not be a loss to them. The only issue is with whatever contract he signed with the current employer. They are not allowed to stop him form making fair wages. – TimJ Apr 11 '11 at 15:34
@Tim you may be right in the context of the further clarification. You might be wrong. There is no clear evidence that he is not valued as a current employee. All we have is a Salary.com comparison which may or may not be benchmarked for experience or the industry. And if you were running a consulting firm and talent that you trained left and joined a client company -- there is a strong possibility that company would take offense. that might not matter in a community like New York. But in small communities with a high degree of social interconnectivity that could unnecessarily cause problems. – Joseph Barisonzi Apr 11 '11 at 15:52
It is clear he is not valued - or at least not as valued as the other company values. Since the current employer KNOWS the standing offer they seem not to care. – TimJ Apr 11 '11 at 16:30
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If you're "graduating" from an intern to a full time salaried position, then for all practical purposes it's a different job even if it is with the same company. As such it's not like you're a full time employee leaving for this client, you were on a probationary period (an internship) where your employer could choose to keep you or not. You have the same choice to stay or go.

I would also shop around and see what else is out there. Then compare your offers and see what comes out on top. If your current employer isn't willing to pay what it takes to keep you, and somebody else is competitively bidding for your talent, then go with the company that gives you the best offer for you.

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Basically, ethics is about right and wrong. I'm no ethics teacher but in my mind it boils down to 2 points...

  1. Is there any legal obligation that prevents you from seeking employment with a client? That is to say, do you have a contract with your company that specifically states you may not work for a client?
  2. Is there any legal obligation that prevents the client from seeking to hire an employee from the company? Again this simply means is there any anti-poaching contract in place?

If you answer NO to both 1 and 2 then you are not doing anything wrong legally and thus you are not doing anything wrong Ethically. You may be setting a poor level of professionalism but that is subjective to individuals and not worth worrying yourself over.

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Generally totally fine and your current company should LOVE having an alumnus working for a client!

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