Are you sure you have a good job offer?
Changing employers and/or moving to another city has been recognized as a means to increase income, but is there really an increase in income? Many important factors should be considered before accepting another position with a new employer. You can actually loose money if you do not negotiate or plan properly.
- How will the increase in income affect your income tax bracket? You may find yourself in a higher income tax bracket only to loose most of the income increase you earned. Taking advantage of medical and investment opportunities may allow you to lower your income tax bracket.
- What kind of medical care benefits are offered? Do the benefits include dental and vision care? What will be the initial cost to you and will the costs be deducted from your paycheck before or after taxes? Does the company offer a flexible benefits package offering you the opportunity to choose from a list of health care programs or does the employer simply offer one type of program? What will be your out of pocket and deductible expenses? Can you contribute to a medical/dependant care reimbursement program?
- What kinds of employee compensation plans are offered? Does the employer offer a 401(k) program? How much, when, and how does the company match your contributions? What is the vesting policy? How much vesting money will you lose (which may amount to thousands of dollars) if you leave your current employer? Is a stock option plan offered, what is the discount and when can you buy and sell shares.
- What are the vacation, sick, and personal time-off policies? What kind of bonuses/incentives does the company offer during the year? Is there a signing bonus? How and when are salary and performance reviews performed and by whom? What is the typical salary increase per year?
- What is the company's policy on confidentiality and are you required to sign a non-compete clause or a confidentiality statement? What are the effects of signing such a statement?
- If changing jobs to another city or state, inquire about the city, county, and/or state income, sales, and property taxes. What is the cost of living and how will your everyday expenses change (food, utilities, living, etc.)? Will your car insurance increase? Will the company pay for moving expenses? Will you receive money up-front, an account to bill to, or a reimbursement?
- The above questions will give you a better means to determine if changing employers will be to your benefit or will you loose money down the road.
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