So you just got a job offer, it’s a good position with a very tempting salary that has you thinking of turning in your resignation at your current job. You are so elated and are about to schedule a thanksgiving service or announce your impending move to your colleagues. Not so fast, take a look at the factors you need to consider before changing jobs.
Before you accept the offer at the new place, you should consider these four factors:
Now let’s imagine that your gross annual remuneration is N25 million, you are ecstatic and over the moon, then after accepting the offer, you realize that 60 percent of your gross salary is performance based i.e. either based on your own performance (e.g. number of sales/ clients you bring in) or tied to you hitting a particular milestone target, or based on the performance of the Company/ Department (e.g. the Company/ department hitting its revenue/ profit target). Then it dawns on you that your guaranteed annual remuneration is actually only N10 million… Oops!
To worsen the case, your old job was paying you a guaranteed annual remuneration of N15 million. This means that except you are naturally able to achieve the set milestone e.g. you are a good salesman/woman, you will be working twice as hard as you were on your old job to earn a minimum of your old job’s remuneration.
The lesson is therefore to ensure that you read through the compensation package - understand every line and its basis, know what your eligibility/ entitlement to them is based on – so you do not get surprised.
Apart from your guaranteed monthly take home, other benefits to consider are:
❖ Pension; whether you like it or not, you will get to the retirement age one day and will have to rely on the pension you have contributed over time - except if you have other assets stocked up or your children decide to take special care of you.
❖You have to consider how much pension your new employer is willing to contribute for you every month, as compared to your current employer’s contribution. Will the current contribution achieve your goals and help you live the post-retirement life you want in the long term? Will you need to start or increase your voluntary contribution to make up for any deficit? There are some employers that structure their compensation package so that they contribute less pension and pay less personal income tax for their employees. All of these factors need to be considered thoroughly regardless of your age.
No matter how rewarding an offer is, you are most likely not actively seeking to work in a toxic environment. You have to evaluate the culture and environment of the Company in line with your expectations and your reason for seeking to change jobs. For example, if you are seeking a new job to be able to have more time for family, a high pressured environment may not be the right option for you. Find ways to get insider information by talking to employees of the Company, you can also observe the culture by paying attention when you go to the Company for interviews or other purposes. You could also inquire why the person you are replacing left in the first place.
You should also consider your work style versus the style in the Company. For example, if you are the kind of person that likes to work in a quiet place and alone, and your new office has a large pool where everyone works from, you may easily get distracted and not be very productive. You may therefore want to negotiate for your own office space upfront before accepting the offer.
If having work-life balance is important to you, you may also want to know what it is like in the new Company, do they typically work weekends or at odd hours at the Company? Will you be required to work weekends? Will you be entitled to overtime allowance when you do?
If you are leaving a bigger organisation to a smaller one, the extent of control and supervision you get may be closer than what you are used to; your boss may be ‘in your face’ most of the time. Read our article on How to Know If You are in the Right Career for your Personality.
We have developed a career resource to guide you on how to create your personalized career development plan. Download it here.
You also have to assess the offer against your career goals and your present state. Does this job move you closer to your career goals? Does it give you a competitive advantage in your journey towards your career destination? Will this new job build on your skill set or will you learn relevant new skills? Will it help you get better opportunities in the future? Or is it a ‘rocking chair’ career move i.e. you are changing jobs but not exactly making progress in your career? If you are closer to your retirement age, do you want to retire in the company and with the title you are being offered? What is the career path in the Company? How often do the employees get promoted? Is promotion mostly based on merit or politics? These are all questions you should ask yourself.
If, for example, you are almost making a major milestone at your current job, and your new offer is offering you the same milestone level or even something lower, you may want to consider staying at your current job a little longer to enable you achieve the milestone and seek for a higher position/ role. You may also need to assess your ‘standing’ at your current job and make a projection into the future.
In essence, all I am trying to say is –
“there is a time to move, and there is the right time to move”.
I know of a lady who worked in one of the ‘big 4’ accounting firms, she was offered a role as a Senior accountant in a multinational company when she was a Senior associate and she rejected the offer based on the advice she received. Two years after that offer, she became a Manager in the accounting firm, and the same multinational company offered her a role as a Finance manager, she accepted the offer; that was her right time to move. Had she accepted the offer two years earlier, considering the promotion rate at the multinational, she would not have been promoted to the finance manager role at the time she made manager in the accounting firm.
Here are some bonus factors to guide you in your decision when considering that seemingly juicy offer:
We have developed a career resource to guide you on how to create your personalized career development plan. Download it here
All in all, you are the driver of your life, so be sure to take calculated leaps that takes you to your dreams. While considering numerous offers and coasting towards your goals, it is important to remember that too frequent job hopping on your resume may create a negative impression to your prospective employers.