The Great Job Reshuffle
What was once coined the “Great Resignation”, now appears to be more of a job re-shuffle, as people move to different jobs or careers. The pandemic has caused people to re-think what they want from work.
Are you one of the people contemplating changing jobs in 2022? Statistics from Bankrate in the Fall of 2021 showed more than half of Americans – 56% – anticipated looking for a new job in the next 12 months. As a financial planner and career coach, I often work with clients who are trying to fit work into their life; rather than just working for money. Making a job change affects various facets of your life – your job satisfaction, your happiness in your personal life, and your financial situation. To make a successful job change, work through the following steps:
Get clarity on what you want, in three broad categories:
a. Downshift
Some folks work lots of hours, make great money and have lots of cool stuff. However, they are exhausted. Burn out is a significant issue in many occupations, leading some to look for less stressful roles.
b. Upshift
Perhaps you are looking to advance your career. If you leave your job to join another company, the average salary increase is nearly 15%1. If you stay, you are likely to get a 2-3% raise in your current job. It’s important that you understand the entire benefits package, not just the compensation component.
c. Work for yourself
According to a July 2020 survey by Digital.com, about one-third of job quitters started their own business.
Prioritize your wants/values:
a. Within the categories above, understand your values. There are various ways to do this, one free assessment is https://www.lifevaluesinventory.org/. Some examples of work values are flexibility, autonomy, challenge, creativity, and collaboration. Knowing your values will help you build a criteria list for what you want in this next career step. Take time to prioritize your most important “wants” in making this change.
b. It’s also good to assess your satisfaction on various areas of your life, as making a job change can alter, maybe improve them. Another free assessment to take is the Return on Life at: https://pro.roladvisor.com/ExternalROLIndex/Home
Understand impact on your financial plan –the “life” trade-offs you are willing to make:
a. If you are Downshifting, how does this impact your short-term spending and your savings for your longer-term goals? What are you willing to give up? Some clients are willing to spend less – focus on cutting discretionary spending – to get the flexibility in LIFE from a different job. Time is a scarcer resource than money – how do you want to spend your time? Maybe less stuff and more time is a worthwhile trade-off! If you are burnt-out, perhaps you can earn less money but work more years and create a more balanced and happier life.
b. Career Advancement. For those of you in your 20s – 40s, now is a great time to focus on career advancement. The job market is tight, you may be able to leverage your skills and experience into a bigger and more highly compensated role. I encourage you to look beyond this step to the next job. Where do you see yourself in five years? How will a current move prepare you for that?
If you obtain a new job at higher pay, challenge yourself to be disciplined to save more rather than merely spending more now. Tie your extra pay to goals, both short and long term. Work with a financial planner to develop targets for how much to save and in what type of accounts to reach your goals. If you change jobs to accelerate your career, use it as an opportunity to improve your life now and into the future.
c. If you want to start your own business, that’s awesome, exciting and scary. Build a business plan for your new business and link that with your personal financial plan. How does the likely short-term income hit as you ramp up your new business affect your personal cash flow for the next few years? How do you finance your business? Be conservative with your assumptions, and like downshifting, be willing to reduce your personal spending for a time period to reduce stress in your life!
The grass isn’t always greener, but if you do your research and tie your personal financial plan and life goals with your next professional move, you can set yourself up for success in 2022 and beyond!
Joni Lindquist, MBA, CFP®, a former corporate executive, is a Principal, Financial Planner and Executive Coach at Aspyre Wealth Partners. Aspyre partners with clients to navigate life transitions. A dog lover, Joni also golfs, exercises, travels, and watches classic mystery TV shows.
- Zippia.com “Average Salary Increase Job Statistics”, December 28, 2021