Switching a job is not just about taking an interview and cracking it. The decision lies in the aftermath of whether the new job is better than your existing one or not. Changing jobs can be one of the biggest decisions you’ll be ever making because any inconvenience can have a direct impact on your finances. But how do you decide whether you need to make such a big move in your life or not? For that, you need to consider certain factors because a wrong move can set back what you’ve made till now. However, the right move can change your finances effectively.
Financial factors to consider before changing jobs
-> Salary
Needless to say, salary is the first and foremost factor that needs to be checked. This is one of the biggest motivating factors for people to change jobs. You must check how much you are getting paid now and how much you can expect from a new company. Check the market standards and ensure your hard work is being paid off rightly. You must consider the monthly basic salary instead of the annual salary. The basic salary is what you will be getting in hand on your payday. So if your basic salary is higher than your existing company then it would be one more reason for you to consider shifting.
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-> Health Insurance
Health Insurance is a mandatory factor you must check while you want to shift to a new company. Your new job might start after a month or the health insurance package might take a while to start, you must ensure there is no gap between the old health insurance and the new one. If your old employer’s policy is going to end on your last day and your new job doesn’t start until a month or so, then you’ll be uncovered during this time period. So talk to your old or new employer who can keep you covered during this unemployed period. Also, ensure your new employer is offering more or the same benefits on the health insurance cover.
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-> End of Service Benefits
Though End of service benefits like Gratuity is mandatory in the UAE, ensure you collect it from your old employer also, check if the new employer is mentioning it in your employment agreement.
-> Location
The location of your new employer will not just be a convenience factor but also a financial one. If your new company location is long from your residence, then you must analyze how much it will consume monthly, will the salary you are going to get compensate for it and will have some extra cash in hand, etc. If your new employer is offering more salary but the extra amount you are getting gets compensated with the transportation then financially you will be on the same level while in the old job. Hence if your new job salary will leave some room for savings than what you did in your old job then you can opt for the new one.
-> Financial Stability of the company
The financial stability of the company plays an important role as only if the company is financially stable and safeguarded, they will be able to pay the wages of time. You must ensure the company is financially good and would be able to stand still during any economic crisis as well. Else it would affect your finances in turn.
-> Additional perks
Additional perks like free meals, transport, gift cards, etc. play a vital role in your finances. Some companies offer soft loans easily to the employees, prepaid cards with discounts and cashback at selected stores, etc. These perks can help you save a good amount when utilised wisely.
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Usually, while switching jobs, basic factors that anyone would consider would be about the job role, responsibilities, company profile, etc. But along with these, important factors lies under perks like how it will help you financially or what change it would bring to your finances. Some of these factors might not help you in your career but can be a good add-on financially.
About the author
Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.
