Monday, November 9, 2009

The Hidden "Costs" of Changing Jobs

For some, looking for and going to a new position is extremely exciting. A New Adventure! The possiblities are endless! For others, the process of looking for a job is daunting and the new opportunity can be frightening. So many unknowns! So much work! Both views of looking and starting a new job are absolutely correct. It is just a matter of perspective.

No matter what perspective you share, there are some common truths that will effect everyone. Looking and changing jobs comes with "costs" - and not just financial. Being aware of them before you put your toe in the job search pool is vital.

Financial costs. Although these costs will impact people differently and to different degrees, they should be considered before making a move.

Keep in mind the financial incentives at your current job and plan your move accordingly. Is your bonus paid on the first of the month? Then give your notice on the 2nd or 3rd? Is your 401k going to be vested in six months? You may want to wait until after that date. Did you take advantage of tuition reimbursement? Make sure to read the fineprint about repayment if you leave the company.

When you identify that new opportunity, find out when their health insurance coverage starts and find out when your current insurance would end. If there is a big gap between the two, consider negotiating an earlier start of insurance at your new company. If that isn't possible, save enough money to cover COBRA costs in case of emergency.

If you have vacation or PTO that will not be used for interviewing time, use it. Just make sure to do so in an inconspicuous way so that no eyebrows are raised.

If you have a parking contract or long-term public transportation pass, assess whether you can still use those arrangements with your new job. For example, if your parking garage is located in the opposite side of town from the new opportunity and you are under contract for a few more months, ask if they have transferable properties near your new job or whether you can sublet your space or pay a penalty to get out of the contract early. At the very least, make sure to know the rules on giving notice so you can stop the expense as quickly as possible.

If you have taken a loan out against your company sponsored 401k find out the rules about repayment. Some loans require immediate payment if you leave the employer.

Before you begin your search, calculate the dollar value of your benefits so you know what you need to receive from a new employer to make the move make sense. Remember to factor in parking and transportation costs. Also, consider additional child care costs and commuting time before you decide the hours you are willing to commit to and where you are willing to work.

You will need to "dress for success" both in the interview process and as part of a new work environment. Be prepared to pay for dry cleaning for your power interview suit and buy new clothing, if the new environment calls for a new look.

Other "costs". Finding and transitioning to a new position can take a toll on you personally and on your relationships at home. Evaluate those potential "costs" before you start your search.

Is your personal life in order so you can commit the time to the search? Is this your spouse's busy season so he/she can't put more time in at home to cover for your absences and need to focus on your search?

Is everyone on board with this process so they will be there for you emotionally? Will they accept the time you will sacrifice with them to look for a job?

Interviewing takes time and the time away from work needs to be covered. Are you prepared to explain your absences? Are you prepared to stay on top of your work so your absences don't become a problem? Remember, that work may need to be done on your time. Do you have time available to fill the gaps? Do you have PTO available to use for your time away? It would be a last resort to be absent without pay because that is financially troubling and may be a redflag for your employer.

Do you have access to a good computer, current word processing software, personal email address, quality printer, and resume paper? Factor in those needs and their associated costs.

Are you emotionally ready to let go of relationships at your current job? Once you enter the job search process your focus is going to change and then, when you start the new position, you will not have the shared experiences with your coworkers. This will change the relationships and can leave you mourning those losses. Be prepared.

The list of potential "costs" may seem long when you first look at it, but don't be afraid. With good planning and good luck, you can manage them and the rewards of the new opportunity far outweigh the risks.

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