Thursday, September 18, 2014

Weighing Employment Options

It's been a truly interesting time in the job market these days. People are working longer. Students are in school longer. And, when they get out, they're waiting for "other people" to hurry up and retire. Those in the workforce are starting to make major mid-career changes; in so doing, going back to school or starting over entirely. Moreover, those who have just graduated are likely having trouble finding work (and thus paying off their student loans) -- for which some are finding the only option is to upgrade their degree up to the next level.

The question begs: Is all this REALLY necessary? Are we so starved out, economically, to find good employment? Well to properly weigh employment options, we need to take a step back and re-evaluate our goals; we need to take a careful look at our (1) personal-life goals, (2) financial-life goals, and (3) retirement -life goals.

Lots to be said about "life," huh? Let us begin!

(1) Personal-Life Goals
How do you want to live your personal life? Do you want a family? To settle down, eventually? Do you want to travel the world? Live luxuriously? Do you want to have all the frills? Drive a nice car? Own the latest fashion statements? Does it matter to you where you live? The weather? Culture? Political climate?

(2) Financial-Life Goals
Do you want to make top dollar? How many hours are you willing to work? Are you willing to let work follow you home? Is work going to become your life? What do you think about overtime? Is your home life important to you? How about phone calls? Texts? Emails? Are company benefits important? How about fringe benefits? Status? Style?

(3) Retirement-Life Goals
Is a retirement matching benefit of high concern to you? How much security do you want? Are you even thinking this far ahead? Does it matter? Or, perhaps you really want to make sure a pension is set aside along with your own company based retirement fund. Do you wish to make more money versus matched funds so you can manage your finances more meticulously?

Once you've answered these questions for yourself -- NOW you can weigh your employment options.

First off, from the perspective of the new grad: most individuals new to the job market are concerned with pay and benefits. Make note of each place you consider; their compensation packages usually weigh out to a balance once you consider every angle (some discussion is worth taking note from this my post: Graduate? Licensed? Hired! - under "So Let's Talk Money").

Benefits: Many companies typically have all benefits kick in after a full month of employment (or sometimes two). This means that if you hire in on January 3, XXX1, you will not be getting benefits until March 1, XXX1. Wait, WHUAAAAT? Yup! Lots of companies require you to complete one full calendar month, including the first day of the month, before you are eligible for benefits. This means it's a smart choice to start your first day as close to the END of the prior month as possible.

The Money: The specific dollar amount you get can be deceptive. Lots of companies are willing to pay you a bundle directly. However, these are the same companies that tend to have shoddy benefits and harsh work-life-balance.

The Culture: Workplace culture is critical. Make sure the place you work jives with your style. Keep an eye out for office politics, the place of work itself (is it well kept?) -- and, too much emphasis on  the extremes. I've seen places trump extreme "diversity" (which means lack of unity, and it shows in the office), too much on "team" (which means, a lot of uniformity -- everything is forced to think the same way). Extremes in workplace culture is never good. It's a good way for a business to run into a brick wall and you with it. Just make some notes. Oh, one last thing: If it looks too good be true... you might be working for Scorpio (Simpsons reference).

Retirement Plans: It's actually quite rare for companies to offer the old fashioned direct benefits and direct contribution plans these days. However, if you are lucky enough to get into a company that offers both, I'd advise you max out those benefits. Sure, that means you don't get cash presently, but assuming those plans have decent returns and are more than just annuity products, you'd be surprised how much you'll accumulate in just a few years. After which, you have the option of rolling that over into a Roth IRA and make your own dealings.

Oh, and one little note: I'm not a financial advisor. However, I've seen this enough to be able to notice that people with more human capital on their side (more working years) are favoring post-tax plans vs. pre-tax plans. Mixing it up can be quite advantageous, especially with bringing down your taxable income, nevertheless -- it's just something to think about. You can certainly try to balance the two options out. Best bet? Just talk to a certified financial planner, CPA, or someone of the like.

Other Thoughts: Also, ask yourself if you are seeking a job for which to hang your hat. Will it be satisfying? Meaningful? Or, perhaps this is a step-up job. Maybe its an employment where you wish to learn, ie. a residency, fellowship, etc. If you wish to have staying power somewhere, then it's best that the place of employment has the better benefits packages versus the dollar amount. If you wish to use a job for a later promotion, don't worry about ANY of the rest... just remember this is a stepping stone to the next goal.

However, if you wish to utilize an employment for the purposes of professional enrichment, make sure you have a good work-life-balance... it can be quickly demoralizing if you are worked to the bone in an experience for which you aimed to come out of with higher standing in skill sets, status, and upward mobility. It'd be a shame if the learning experience actually caused you to burn out.

Big vs. Small Firms: Small firms usually offer a lot of opportunity paired with some uncertainty. However, its not uncommon for new grads to get into a small firm, hang around 4-5 years and get bumped up to a director or even a VP level because of the structure. A large firm, however, usually has less upward mobility. There's a long line of people waiting for that next classification of becoming an *insert-job-title-here* Level II. However, larger firms tend to have better benefits, better pay, and much more security.

Live within your means:
We're starting to see a severe blunting in the market value of jobs. Regardless of your training, education, etc. - most jobs are paid just the way they are paid per industry. The variability is starting to shrink and the difference within the industries are starting to shrink as well. One of the best pieces of advices I can offer is to live within your means. If you have debt (and who doesn't), check out programs such as Power Pay which can help you plan out payments and get rid of that debt FAST. Then you get to move on with your life and really pursue those life goals you've set.

Pick ONE Vice: Pick a vice, stick with it, and be sure it doesn't break your bank or your bones... both ranges typically do not end well. So, sky-diving early on? Perhaps not the most secure choice. But certainly, find something where you can rest/play hard to contrast how hard you will be working. This is critical in terms of finding a balance of health - mentally, intellectually, physically, and even spiritually.

Set An Exit Strategy: Yep. Make sure you keep in mind an end result to all the "work." As mentioned before, if this job is a step-up job, keep this in mind. It'll keep you sane. If this is your last job, be secure in it. Finish strong, you're going to retire at the end of it all. Maybe this is a career change job, its okay! You've just exited an industry which wasn't satisfying to you and are beginning on a very exciting journey. It's all just the beginning. Enjoy it! Or, maybe this is the company you really want to stay at. Great! Set your sights high -- for a long, wonderful stay. Or, perhaps a leadership position where you can affect greater good.

Some Closing Thoughts:
Some of the best paid jobs I've had were the worst I've had... I couldn't bear to wake up Monday mornings at times. In fact, I even developed physiological anxiety responses to my cell phone going off. NOT GOOD. Yet, other jobs I had were amazing. I enjoyed every minute of it. Yet, other lines of work, the pay just wasn't good enough or the office politics drove me insane. When one weighs employment options, there is certainly the immediate need. However, what perhaps holds more importance are the other factors - factors which can help you choose a path most closely aligned with the goals you have in pursuit of employment. As such, you will be able to find and choose work for yourself that gives balance to your personal life, your professional life, and your retirement.

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