According to our latest compensation survey, more than half of security-cleared professionals surveyed said they were “likely” or “very likely” to change jobs in the coming year. Respondents whose salaries were in the lowest 20% were the most likely to consider switching jobs. The difference in the average base salary between those “very likely” and those “not at all likely” to change jobs was 10%.
If frequent job change is inevitable, you have to wonder if it’s worth it. Everyone talks about how much job turnover costs the employer, but what about the employee? Here are some costs to consider when making job changes:
1. Commute Time.
This cost is sometimes hard to determine; however, it’s important to understand the increase in fuel, car wear and tear, extra metro fees, extended childcare or petcare, or even increased food costs due to the additional takeout needed to keep everyone fed with a commute change.
2. Parking.
This applies mainly to those in the city, but it can be a costly consideration. Changes in parking can add up over the course of a year. Parking can easily cost about $200/month in many areas. In fact, in Washington D.C., rates can range from $175 to over $500. Just $200/month can rack up $2400 a year in costs. Make sure any changes in parking are factored in before you switch positions.
3. Leave.
Do you have sick days and paid leave or just paid leave? For those wanting to start a family, do they offer maternity/paternity time off? Consider the costs if you’ll be compelled to take unpaid leave.
4. Healthcare Packages.
In a major medical event, what does short and long term disability look like? Disability options can be the difference between paying the mortgage or rent and being bankrupt and losing a clearance. How much are co-pays with your current insurance plan compared to the new one? Deductibles can be a game changer too. This is not a hard thing to compare because you have actual numbers; however, it does take some time and analysis.
5. Training and Ongoing Education.
Some companies pay for any ongoing training required to maintain certifications, but some companies leave that cost (including the hours to complete the training) up to the employee. Education and training can play a major role in earning promotions, so it’s important to factor in how much you will have to fund your ongoing education and training, since it is such a large cost.
6. Retirement Package.
This cost depends on what is more important to you – money now or money later in life. For those with a savings mentality, this option is important. Many will opt to receive less money now in order to max out employer contributions. Others would prefer the money in hand now and worry about retirement later in life. Both approaches are understandable in various seasons; however, an employer that makes large retirement contributions for its employees can really make a difference for your retirement fund.
7. Travel Requirements.
Of course, most employers offer per diem and reimburse for travel expenses. But some employers ask employees to front travel costs and get reimbursed later. Consider whether your budget allows that. Travel can also translate to additional personal expenses, such as childcare, petcare, or house sitting.
8. Wardrobe Changes.
This one may seem silly, but if your new job is a suits-only place, that does have to be factored into the costs associated with the job. Not only does it cost money to acquire new clothes, it also costs money to maintain them.
9. Social Event Expectations.
It’s a good idea to network and meet the workplace expectations This type of environment isn’t always cheap. How many happy hours are hosted? Are there expectations to go to baseball games or hockey games? If the employer doesn’t cover some of these costs but frequently expects dinners, happy hours, or team building events, it can directly impact your monthly budget.
Even if the new job is a great fit and an easy change, it is still good to compare costs and plan for them. It’s never a good feeling to look back over the previous 3-6 months and wonder where all your hard-earned money has gone. If your numbers don’t come out in the positive with a job change, take a closer look at your market value and even negotiate a better salary or benefits from the new employer. It’s easier to negotiate when you have the facts to support your position.
