Knowing your Own Bottom Line
Changing employers, contract positions and total career changes have become a normal part of our landscape. Today, we look at the range of information, impacts and decisions that go along with that. Some information and questions are obvious:
- Is the regular compensation higher or lower?
- Is there a bonus structure?
- Is the time commitment higher or lower? This could involve daily commuting, regular travel or number of responsibilities and resources given to meet them. Vacation time and flex time may also be considered here.
- Is there a benefits package? How does it compare to your current package?
- Do you expect opportunities in the future for change to compensation or time commitment?
Something that may be less obvious: Reviewing the above only makes sense if you know what your own needs and goals are. If your current position pays enough to meet your needs and goals, moving to a higher pay, less flex time position may not make sense for you. If you haven’t developed your own plan, there may be a temptation to take the higher pay only to realize that it wasn’t worth it to you later.
Changing employers or careers can also generate options related to the benefits that you are leaving. Questions about what to do with a Defined Benefit pension plan need careful analysis that draw in your personal situation. There is often a time limit to make a decision about commuting (moving your benefit amount out of the plan and managing the money yourself) or remaining in the plan. The impact of this decision may not be felt for many years.
Sometimes, you don’t have a choice in the change; layoff or company closure forced the change. Understanding your personal goals and financial situation gives you the information that you need to decide what your next step looks like.
In the midst of change, it can feel impossible to call a time-out to review your needs and goals. Without the relevant information and analysis however, you may find yourself writing a ‘ladder against the wrong wall’ chapter in your life.
“If the ladder is not leaning against the right wall, every step we take just gets us to the wrong place faster.” Stephen R. Covey
To start your plan, contact Sara at 519-569-7526 or firstname.lastname@example.org
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