The Hidden Cost of the New Job
You’ve been searching for months. You’ve been on countless interviews. You’ve had more Skype conversations with strangers than you ever hoped you would. Now you have it. Offer in hand. Congratulations! But, maybe not so fast. Before you accept the new offer, have you run through the costs of changing employers?
There are both tangible and hidden costs involved, and a salary increase can be greatly decreased or even eaten up if you’re not careful. Here’s what to look for:
Commuting costs. If you’re going to be increasing your commute time and distance, be sure you’re factoring that into your decision. The actual dollar cost of a lengthy commute can be in the hundreds of dollars when you factor in car maintenance, fuel, or public transportation. The intangible cost of the toll a long commute can take on your psyche is immeasurable.
Cost of benefits. How does your new employer health plan stack up in terms of premium and deductibles? How does the coverage itself compare? Plans vary widely, so it’s important to vet out the details and uncover how much it’s really going to cost you. Is there a waiting period? Will you have to pay COBRA for 30, 60, or 90 days?
Lost time in 401(k) contribution. Many employer retirement plans do not allow you to begin contributing right away, and nearly all have tiered vesting, based on length of employment. If you leave your new employer before you’re fully vested in the plan, you could be leaving a significant chunk of money on the table.
New wardrobe. Are you going from being a manager to being a director? You’re going to need to step up your look, which means an investment in your professional wardrobe. With that will likely come additional expenses such as weekly dry cleaning.
Less time off. As with the 401(k) vesting, paid time off is often increased the longer your tenure with an employer. Although this is somewhat surprising given how frequently people change jobs, it is the reality. Do you really want to go from 25 days of PTO plus unlimited sick time to 15 days of PTO per year? What about the intangible cost of being unable to get away from work to do the things you love?
Cultural differences. Everything at the new employer will be new. Their systems won’t be exactly the same as what you’re accustomed to, they will have different policies and procedures, and you won’t know much about the people you’ll be working with. It will take effort and investment in time on your part before you truly feel comfortable and at home. Is this a challenge you’re willing to take?
More demands on your time. If you’re taking a step up in your new role, you can expect added responsibility. With that will be increased demands on your time and attention. This can be a bit of a shock initially. Are you ready to put in the extra effort necessary to excel in your new role?