Posted by Jill on June 2, 2011
Are you thinking about switching jobs? As the job market starts to loosen up just a little bit, unhappy and underpaid workers everywhere are considering brushing up their resumes to submit applications. Nearly everyone who seeks to switch jobs attempts to get at least a small raise…but a small raise might not be enough if the new positions comes with unforeseen costs.
New Job Costs
- Additional gas/public transportation costs if your new job is further from home – in extreme cases you may even have to purchase a car!
- Additional child care costs if you work longer hours
- Wardrobe costs if the dress code is different
- Increased insurance premiums if your new employer is less generous than the old one
- The need for higher retirement contributions if you’re losing an employer match
Jobs that require moves might come with even more costs – moving costs, new apartment deposits, additional state or local taxes. But of course these long-distance job offers might also come with quite a few perks (and tax benefits) – and hopefully a worthwhile raise!
Next Steps
If you have a job offer in this dismal employment environment, good for you! If you’re extra lucky, you’ll actually end up with a higher salary AND increased benefits rather than additional costs. But before you sign on the dotted line, consider the big picture…will the increased costs of the new job plus any lost benefits from the old job leave you in a worse financial position than before? If you can truly afford the switch, go for it. But if you recognize that the job could cost more than any salary increase could compensate for, perhaps this is one offer you should pass on.
What other costs – or benefits – might come with a new job? Help your fellow job-seekers out by sharing in the comments!
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5 Comments
If you get less vacation or sick time, you might have to factor that in as a change in your lifestyle or planned activities over the course of the year.
Good point! Especially if you are of prime wedding age like I am – every time I turn around I am taking another day off for a friend’s wedding!
First job I ever got had many of the costs you listed and I never even considered how it affected my overall pay. Gas and clothes + weekly dry cleaning were such a nuisance.
People should always look at the total benefit package, matching in the 401k, health insurance etc. plus the expenses of each job to determine the total wage and cost of each job. Then choose the job with the most amount if money in the end, unless there is another reason to pick a certain job.
These days finding a job period is hard. If you have the skillset to hop from job to job, this article is great info to start a cost/debt analysis of switching over.