Whether you want to leave your job because another company is offering you more money or better working conditions, John Manyike, Head of Financial Education at Old Mutual, has a few things you should think about before making such a huge decision.
Read more: How to be more confident at work
6 things to consider before quitting
1. Do your homework
Before you jump ship, make sure you do your research on the financial stability of the company you’re looking at joining. Downsizing and retrenchments are unfortunately a reality for some sectors in this challenging economic climate, especially given the recent downgrading of our economy. Imagine joining a new company only to be retrenched a few months later!
2. Can you work with what you’ve got?
Explore the opportunities at your current workplace. Could new doors open for you if you sharpen your professional skills, invest in your personal development, upgrade your technology skills or complete an educational course? If you develop those skills that are in demand and very relevant to your current employer or your industry, you make yourself much more valuable — and put yourself in a stronger position to negotiate a salary increase or promotion.
Read more: 8 ways to get promoted this year
3. Focus on the big picture
Don’t get tempted by a ‘big’ salary. Make sure you are comparing apples with apples. Look at the other benefits that your company is offering, which may be more valuable than a slightly higher salary. These can include perks like medical subsidies and retirement fund employer contributions.
You can even ask for a dummy payslip from your potential new employer — to see what your future take home pay could look like. Remember, when your salary increases, you may enter a new (and higher) tax bracket.
4. Location, location, location
Consider the location of your new employer. Obviously, if the office is situated a lot further away, then your additional travel costs should be factored into your calculations before you accept the offer. The increased travel expenses could wipe out any salary increase.
5. Don’t resign for the wrong reasons
If you’re tempted to resign to access your retirement fund and use the cash payout to help fund your living costs or pay off your debts, think again. “Workers who do this are actually borrowing money from their future,” says Manyike.
Read more: How to sort out your debt in your lunch hour
“People who cash in their retirement funds instead of reinvesting or preserving the proceeds usually have to rely on the State or their children when they retire.” This situation is contributing to the growth of what is now termed the “sandwich generation”, the embattled middle generation that is financially responsible for both their ageing parents and their dependent children and even grandchildren.
“Debt should never be the reason for your resignation. Rather face your financial situation head on — however poor it might be — and put a strong financial plan together that will help you pay off your debts as quickly as possible and ensure you live within your means while securing a better financial future.
For more financial tips visit Old Mutual’s brand new On the Money mobile site.