 Coronavirus has created chaos worldwide. Read on for tips to help you handle this health and financial crisis.
Times are tough! We're here to help.
Welcome back to Invest in You: Ready. Set. Grow's supplemental Money 101 guide to financial wellness as we navigate the pandemic.
The crisis has led many Americans to evaluate their lives — and their jobs. While they were worried about being laid off early in the pandemic, millions of people are now quitting in what's being called the "Great Resignation" or the "Great Reshuffle."
A record 4.5 million walked away from their employer in November alone, according to the latest numbers from the Labor Department.
Yet financial and career experts caution you to make a plan. In teaching professional development classes at Columbia University's School of International and Public Affairs, I also tell my students that having a plan is the first step in your journey toward a new job or a career. Today we'll take a look at what you need to know before you say, "I quit," and what employers are doing to attract and retain talent.
Thank you for already undertaking your journey to financial wellness. We hope these supplementary lessons help pave the way forward.
Sharon Epperson
THE GREAT RESIGNATION
Get your finances in order Before you decide whether you can walk away from your current employer, make sure you can afford it. If you don't have another job lined up, you should have an emergency fund to cover three to six months of living expenses, at least. Some experts suggest six to 12 months. The money should be in a high-yield savings account and not invested, so that it is easily accessible. |
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Assess your health insurance options
If you take part in your employer's health insurance, you'll have to find coverage once you leave. If you aren't taking a new job that provides insurance, price out your options.
Job-based insurance is available through COBRA, typically for up to 18 months after you leave. However, it is expensive to do so since you may have to pay for the entire premium instead of it being subsidized by your employer.
You can buy an Affordable Care Act plan through a public exchange on the health insurance marketplace or you may be able to go on your partner's plan.
When looking at your choices, keep in mind the doctors, drugs, and diagnostics coverage, in addition to the costs. If you opt for COBRA, keep in mind that you may not be able to switch to an ACA plan until the next open enrollment season, which begins in the fall.
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Do your homework
First, identify what type of work it is you want to be doing, who you want to be doing it for and the pay you'd like – and the pay you'll need to cover your expenses and meet your financial goals. Then, come up with a list of target companies.
Set up job alerts through LinkedIn and career websites so you can be notified when new ones are posted. When it comes to your resume, make sure to tweak it so it matches the description of each job you apply to. Include keywords.
If you are making a career change, now is a good time. Employers are struggling to fill positions due to skills gaps, Monster data show. The result: 70% are willing to hire and train someone with transferable skills.
Make sure you highlight those transferable skills in your resume and cover letter. Back that up with real examples of your work.
As always, networking is important. Reach out to people who work at companies or industries you would like to join.
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"The only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle." — Steve Jobs
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Companies step up
In the war for talent, companies are offering more financial wellness benefits to attract and retain workers – like Roth 401ks, emergency funds, and student loan repayment assistance. It may also include financial coaching and financial planning.
For instance, 26% of defined contribution plan sponsors allow Roth or after-tax contributions in retirement accounts to build "emergency funds", according to a survey by benefits consulting firm Willis Towers Watson. Another 60% of plan sponsors are interested in offering one of those options, to help employees build savings that can be tapped for short-term needs.
Do your research and see what companies may be upping their offerings.
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The bottom line
It may be tempting to say, "I quit," but making an informed decision will serve you well in the long run.
Also, remember to know your worth. As much as you want to escape your current job, don't settle when it comes to your next one. There are online tools that can help you find salary information, such as Glassdoor , Payscale and LinkedInSalary. Remember, there may be benefits in addition to salary, like remote work, flextime or financial wellness tools, which may also make the job appealing.
And, getting to know the "right" people is also key to getting the "right" compensation package. Talk to employees at former, current and future employers to find out the pay scale and benefits that may be offered at various firms.
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