You’re feeling overworked. Got a headache. The boss is screaming. Here comes that back-stabbing colleague. If this is your Monday morning, it’s no wonder you’re looking to move on to a new job. But before you make the leap, think about a few things.
- Opportunity Cost. Yes, the U.S. unemployment rate has fallen over the last 5-6 months, but most economists say this is because a large volume of long-term unemployed individuals have thrown in the towel (and so are no longer counted among those without work). One major cost of jumping ship to a new job is opportunity cost…the proverbial “bird in the hand”. If your current place of work is stable—they didn’t suffer major layoffs during the recent recession; they’ve continued to hire, albeit at a slow pace; you received a raise last year, albeit a small one; your health benefits were unchanged—then you should think before moving on to a company that may not provide the same. (Note: If you can’t move up or expand your skill set at your current job, there’s also high opportunity costs if you decide to stay put.)
- Will your new salary be enough? Career changers, in particular, will often accept a lower salary in order to get their foot in the door in their new career. But a market correction could engender higher inflation, rendering that new salary even lower (in real dollars) than anticipated. Make sure you can pay your mortgage before making the leap.
- 401kVesting. Are you fully vested in your current company’s 401k (or other retirement savings plan)? When you start at a new company, you may need to wait two, three or more years before your employer’s 401k matching funds become 100% yours for the taking. In fact, you may need to wait several months or a year before the company will start contributing to your plan at all. This can mean a hit to your long-term retirement savings.
I’m not saying you shouldn’t change jobs. (If I did, that would hurt my own business pretty badly!) What I am saying is that you should think it through to make sure the new job you take is the right one for you.
Need help figuring out your next career move? Consider Resume Deli’s career counseling services.