5 Factors to Weigh Before Jumping Ship

While companies are bouncing back from the COVID-19 havoc, more and more positions and roles are being filled. And employees are left with the question: Is changing careers necessary at this time?

Most employees may feel the need to jump ship for many reasons. While the financial aspect continues to be the primary reason employees desire a job change, other underlying factors weigh equally to financial needs. 

Therefore, it’s vital that employees consider various factors like retirement plans, insurance, and company benefits on top of the enticing basic salary. Here are the top five factors to consider before jumping ship to prevent regrets moving forward. 

1. Consider the options for your existing retirement plan

If you have a current 401(k) or retirement savings plan, make sure to plan out what you want to do with it effectively before changing careers. There are several options you can take. For instance, you can keep it as it is, cash it out, bring the funds to your new retirement plan, or put it into an IRA. It’s vital to consider the penalties and taxes when you withdraw your retirement funds. Although leaving the money in the current retirement plan is advisable, it’s recommended that you consolidate the funds if you can. 

2. Scrutinize the insurance plan offered

The Affordable Care Act implements that 95 percent of full-time employees must be covered for organizations with more than 50 full-time employees. For smaller companies with under 50 employees, employers aren’t obliged to offer health insurance. Some smaller companies may still offer coverage, provided that it meets ACA requirements. 

Make sure you scrutinize what’s included in your health coverage if the new company offers this benefit. Weigh the insurance plans carefully and clarify how much your premiums are and how much is deducted from your salary. 

3. Know the precise equity compensation package

Some companies offer equity as one of the compensation package benefits. However enticing this may sound, it’s imperative that you identify what’s included in this equity offering. Know the basic rules around this type of company benefit. Some of the various equity offers from most companies are:

• Incentive Stock Option (ISO)
• Performance Shares
• Restricted Stock Unit (RSU)
• Non-Qualified Stock Option (NSO)

Determine if you can purchase your shares in case you leave the company.

4. Consider even the smallest benefit

Although big benefits like retirement plans are heavy factors to consider when changing careers, the small benefits also matter. For example, consider how these funds can be consolidated, transferred, or used if you currently have a health savings account (HSA) or flexible spending account (FSA).

Also, clarify if the new organization provides food and transportation allowance, monthly grocery vouchers, gym memberships, or other small yet financially impactful benefits that might persuade you to a job change. 

5. Pamper yourself

If you’ve been churning in hours per day in your former company, don’t forget to treat yourself after you jump ship. Some new jobs offer a huge signing bonus, so use some of that to pamper yourself. Go to a spa, buy that new watch you’ve been eyeing, or go on a vacation.

Treating yourself by pampering yourself can make you feel energized and refreshed for your new role.