Changing Employer - At What Cost?

By Marie Taylor

Jobs Vacancy, Job vacancies, Employment Jobs

Want to make that change from your current employer, apply for promotion or considering a change in your career?

Have you considered the financial implications of making a job change?

When you buy a house, a car, or indeed any asset you most likely spend some time assessing the benefits. You might examine the features, the enhancements. The add ons, the differential cost of a more desirable postcode or a particular stereo feature. I want to encourage you to think about your next career move or job change like an asset. You are investing in you when you change role so make sure that it is a well thought out proposition.

Your reward is not simply the salary: Don't be seduced by the salary alone. When you are applying for something new consider the whole package- what is the value of the car to you? What about the pension you have accumulated; might you lose some pension benefits? If the new employer scheme is a less generous one how much do you need to contribute to make it comparable with your existing pension? Will your new salary allow you to do this?

What about the number of days holiday? Are the holiday closure arrangements and public holidays included or not? Any bonuses? What is the commission structure in the new job? When does it kick in? How long will you have to wait to earn it and what impact does this have on your first year salary?

Are the tax implications different for you in relation to the size of car or the leasing/purchase arrangements? How do the arrangements compare? Does it make the package comparable still?

Check your employment benefits beyond the contractual package: It may seem strange to think about HR policy and things like redundancy packages/payments or notice periods you might have in a new job. But if for example, you have 8 years service in your current role, your level of exit package and notice period in any new role may be very different. This is particularly important if you work in a volatile industry or professional area where the short-term gains are very good. If the risk of redundancy is high in your industry and you jump ship in a panic, you may find yourself losing out on a decent redundancy payment and possibly find that you stand to receive very little if your job goes in the first year or so with a new employer.

Don't be afraid to discuss these issues once an offer has been made and before resigning. It is much harder to negotiate and have an agreed term introduced into your contract once you have joined an employer. Far better to check and agree terms and applicable policy affecting your employment before you join.

Check any restrictions in the new contract:

Before signing a new contract, read it. There may be restrictive clauses in the new contract. This is particularly important if you run a business in addition to working and this is not favoured by the new employer or if you do private work using the same skills and knowledge that your employer pay you for. These clauses sometimes require that you seek approval from the employer or may even prevent you from such work completely - read and check the terms before you sign up.