A friend of mine who is a senior manager for a large retail company told me of a recent employment decision that she had to make. A manager hired just a year ago was terminated. He had a stellar resume, great experience and interviewed very well. His downfall? After a year and frequent coaching and counseling, he wasn’t able to adapt to the company culture and wasn’t the right fit for the job. This was a high-level position, which required moving his family from another state, selling one home and purchasing another. The decision was difficult to make for the company and devastating for the employee.
No one would ever plan on a termination, but in this economy it makes good sense to make some financial moves to guard against the devastating consequences of losing a job.
1. Rent accommodations for the first year. In my experience in HR, most employees are terminated within the first 90 to 180 days of employment. The financial consequences of buying and then having to sell a house or condo in a short time in this economy can haunt you well into the future.
2. Save up at least six months of living expenses or negotiate an equivalent sum as a sign-on bonus. Put it in the bank and don’t use it for anything else. If things don’t work out, you will have at least six months to make some good decisions about your next career move without panicking about how you are going to pay the rent or electric bill.
3. Consider a split move. Houses are difficult to sell in some areas and nearly impossible in others. While it is best for families to stay together, having the one who is newly employed move to the new area and job while the family stays put will reduce the stress of having two residences and trying to sell one long distance. There are other considerations such as children switching schools in the middle of a semester, but it’s important to consider all the options. Rates for extended stay hotels can be reasonable and negotiated.
4. Simplify your life. Getting a new job with lots of perks, high salary and bonuses used to mean a bigger house, the swimming pool you always wanted, a new car and finally taking that dream vacation to Italy. All that is great, but putting yourself in debt with only a promise of a future bonus or promotion and raise is risky business. Instead of moving up, take stock of your present lifestyle and ask yourself where you can simplify and reduce your financial burden. Pay off the credit cards with the bonus, get new tires for the old car, get rid of all the accumulated “stuff” you don’t use any more (charitable donations are handy tax write offs), and be realistic about how much house (condo, apartment) you really need to be comfortable. Invest in a bit of peace of mind, and you will enjoy your new job and whatever the future may bring.
Mary Nestor-Harper, SPHR, is a freelance writer, blogger, and workplace consultant. Based in Savannah, GA, her work has appeared in "Training" magazine, "Training & Development" magazine, "Supervision," "Pulse" and "The Savannah Morning News." You can read her blogs at www.skirt.com/savannahchick, www.workingsmartworks.blogspot.com/ and on the web at www.mjnhconsulting.com.
No one would ever plan on a termination, but in this economy it makes good sense to make some financial moves to guard against the devastating consequences of losing a job.
1. Rent accommodations for the first year. In my experience in HR, most employees are terminated within the first 90 to 180 days of employment. The financial consequences of buying and then having to sell a house or condo in a short time in this economy can haunt you well into the future.
2. Save up at least six months of living expenses or negotiate an equivalent sum as a sign-on bonus. Put it in the bank and don’t use it for anything else. If things don’t work out, you will have at least six months to make some good decisions about your next career move without panicking about how you are going to pay the rent or electric bill.
3. Consider a split move. Houses are difficult to sell in some areas and nearly impossible in others. While it is best for families to stay together, having the one who is newly employed move to the new area and job while the family stays put will reduce the stress of having two residences and trying to sell one long distance. There are other considerations such as children switching schools in the middle of a semester, but it’s important to consider all the options. Rates for extended stay hotels can be reasonable and negotiated.
4. Simplify your life. Getting a new job with lots of perks, high salary and bonuses used to mean a bigger house, the swimming pool you always wanted, a new car and finally taking that dream vacation to Italy. All that is great, but putting yourself in debt with only a promise of a future bonus or promotion and raise is risky business. Instead of moving up, take stock of your present lifestyle and ask yourself where you can simplify and reduce your financial burden. Pay off the credit cards with the bonus, get new tires for the old car, get rid of all the accumulated “stuff” you don’t use any more (charitable donations are handy tax write offs), and be realistic about how much house (condo, apartment) you really need to be comfortable. Invest in a bit of peace of mind, and you will enjoy your new job and whatever the future may bring.
Mary Nestor-Harper, SPHR, is a freelance writer, blogger, and workplace consultant. Based in Savannah, GA, her work has appeared in "Training" magazine, "Training & Development" magazine, "Supervision," "Pulse" and "The Savannah Morning News." You can read her blogs at www.skirt.com/savannahchick, www.workingsmartworks.blogspot.com/ and on the web at www.mjnhconsulting.com.
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