The following is a post by MPFJ staff writer, Derek Sall. Derek is the owner of the blog, LifeAndMyFinances.com, where he teaches people how to get out of debt, save money, and become wealthy.
Have you ever considered leaving the company you’re currently with to venture off into an exciting new career? I think we all have at some point. In the past couple of years, I have probably thought about working elsewhere four or five times. But, when I review the pros and cons, I ultimately end up sticking it out with my current employer.
When considering a new job, what are some of the most important factors to consider? In my mind, I have six important areas that I consult and that have ultimately kept me in my current job.
1) Salary
This is honestly the first thing everyone looks at – probably because it’s an easy comparison and it makes up the bulk of your work benefits. If the new job pays $150k compared to your current $50k salary, then an extra 401k contribution in your old job probably isn’t going to matter that much. But, if the new job promises to pay $55,000 compared to your current salary of $50,000, then you might want to take your comparison a bit further.
2) 401k Contributions
The 401k contribution is a wonderful perk that’s offered by many companies. Often, if you agree to contribute 3% of your salary into your company sponsored 401k, then they will likely match 100% of your contribution. So, by putting in $100 a month and getting a full match on that money, $200 is actually going into your account. Obviously, the higher the match, the better. If the new company does not offer a match on your investment contributions, then you might need to figure out how much this impacts your overall “pay” for the year.
3) Bonuses
As a means to incentivize their employees to work hard, some employers offer a performance-based bonus each quarter or year. If your company very regularly hits their bonus targets and pays out extra money because of it, be sure to factor this into your overall yearly pay. The same is true for the new company where you’re thinking about working. Toward the latter stages of the interview process, it would be an excellent idea to ask about the possibility of a bonus payout to see if that would alter your thoughts about taking on this new role.
4) Medical Benefits
Over the past few years, the costs of healthcare have soared – sometimes showing cost increases of 40% or more year-over-year. As these costs have continued to rise, the importance of checking into the medical benefits of the new company sometimes ranks right up there with salary. After all, if you’re left paying out $200 per paycheck compared to your last job where you only owed $20, that’s going to impact your life severely! Before you sign that contract, be sure to ask for the medical options and the amount that it would cost you per paycheck in premiums.
5) Atmosphere/Culture
During your interview process with that new company, do your best to scope out what the culture is like. It can be difficult, but ask anyone you can about how they like working the job they do, or better yet, ask them what the best aspect of their job is. If they stand there with a blank look on their face, then the culture is probably terrible.
Culture can mean a wide variety of things. It could mean flexibility, it could mean the number of hours that your boss expects you to work, it could even mean the mood of the place of employment. An excellent culture is hard to find, so if you sense that a place of employment has a good one, jump on it.
6) Location
I didn’t realize how important the location of my work was until I started interviewing with a company that was 45 minutes away (compared to my current 10 minute commute). The pay was about $20,000 better, but the drive-time would add more than an hour to every single working day! At 5 hours per week, and 52 weeks a year, this equates to over 250 extra hours “worked”. It just wasn’t worth it to me. I absolutely love living close to work. It clears up my mornings and my evening to do whatever it is that I want to do.
Before you hop into a new career with a new company, be sure to consider all of the factors above.
How about you all? Have you ever taken a new job without considering all the factors? What other factors should you consider before taking a new job that aren’t listed in this post?
Share your experiences by commenting below!
***Photo courtesy http://commons.wikimedia.org/wiki/File:Embl%C3%A8me_de_la_Justice.jpg
Consider These Factors Before You Leave Your Job for a New One is a post from: My Personal Finance Journey
