A Gameplan for Minimizing Risks Before Changing Jobs

Eyeing a career change?

Switching careers or job hopping continues gaining traction today, particularly among Gen Z (1997-2012) workers looking to accelerate their careers.

Alongside the growth of remote jobs, changing professions gives access to better work opportunities, higher pay, and improved work-life balance.

That said, constant career change brings potential risks like:

• Job Security Concerns: Frequent job hopping may raise questions from potential employers about your commitment.
• Financial Uncertainty: Periods without incoming can strain your finances if you don’t have a safety net.
• Damage to Your Reputation: Although career changes are more common nowadays, some companies still see this as a sign of unreliability or lack of commitment.

Thus, it’s crucial to have a clear strategy before switching careers to ensure a smooth transition.

Here’s how you can craft one:

Assessing Your Skills: Are You Ready for the Switch?

Let’s begin by ensuring your skills are up to snuff with the demands of the modern job market.

Having the right skillset opens more opportunities for you to pivot your career or even transition from one industry to another.

When assessing your current skills, start by engaging in self-reflection to identify your short and long-term career goals.

Afterwards, create a list of your hard and soft skills to better know your strengths and weaknesses. 

The former are your technical abilities earned through education and training, while the latter are your interpersonal skills like communication and adaptability.

Next, identify which of your current skills are transferable ones. Skills like leadership and problem-solving skills are especially valuable if you’re looking for remote-first job opportunities.

Finally, research job descriptions for positions you’d want to apply for to identify the necessary skills for them.

Closing the Skill Gap

What if you lacked several key skills for the new industry you’re looking to get into?

The best way to overcome these skill gaps is through upskilling and reskilling. Doing so not only helps with career redirection but prevents career stagnation as well.

You can do so by attending workshops and online courses and seminars to earn certifications for your chosen industries.

Upon earning a certification, update your resume, LinkedIn profile, and portfolio to reflect this to improve your personal branding and help you stand out from the competition.

Researching Potential Employers: Are They Better Than Your Current One?

Got all the skills you need to change careers? 

The next step is to research the job market you’re planning to enter and find employers that best suit your career goals.

Before accepting any offer, here are some factors to consider:

Comparing Benefits and Compensation

Typically, the first thing most employees research when doing a career change is the salary their new role offers.

To ensure you’re receiving appropriate compensation, look up industry-specific trends so you can gauge where the offer stands relative to similar roles. 

Furthermore, knowing more about the standard compensation packages in your new industry empowers you to negotiate better terms with potential employers.

Aside from your base salary, consider any additional benefits like health insurance, paid time off, and professional development opportunities.

Understanding the full value of your compensation package not only ensures it meets your financial needs but your long-term career trajectory as well.

Understanding Company Culture and Stability

Besides your compensation, you must also assess the company culture.

Company or corporate culture encompasses the shared values, beliefs, and behaviors within an organization. 

A positive company culture fosters employee satisfaction, resulting in higher productivity and reduced turnover. 

On the other hand, assessing your potential employer’s organizational stability ensures your job security while working there. 

Companies with a stable organization are better equipped to handle sudden market fluctuations and provide opportunities for long-term growth.

To assess these factors, you can start by exploring the company’s website, specifically the “about us” section, to see whether their values align with yours.

In addition, you can also look for any recent news regarding the company so you can see its current stability and direction.

Finally, during your interview, inquire about the company’s values, employee development programs, and responses to their industry’s challenges.

The Rise of Remote Job Opportunities

The increasing number of work from home openings widens your potential employer pool beyond geographical boundaries.

Companies that embrace remote work often exhibit flexible, tech-driven, and innovative cultures. 

Having a flexible schedule is especially crucial if you’re looking to balance career growth with your personal life.

Furthermore, many remote-first companies also invest in digital tools and continuous learning initiatives to support their distributed teams, which helps in your upskilling and reskilling efforts.

Understanding Financial Implications Before Resigning

Unless you already have a job lined up or a side hustle, expect to spend weeks or months without a stable source of income.

Thus, a crucial factor you must consider before making a career change is your financial stability.

A good grasp of your finances helps manage risks effectively, guard against unnecessary financial stress, and ensure a smooth transition from your current job to the next.

Calculating Your Financial Safety Net

To ensure your financial stability while doing a career change, build a safety net to cover your expenses during this time:

• List Your Monthly Expenses:
  • Include rent or mortgage, utilities, insurance, debt payments, and any other essentials.
  • Remember to include any smaller recurring expenses that add up over the month.
• Determine Your Total Monthly Budget:
  • Sum up all these essential expenses to find your total monthly spending.
• Decide on the Duration of Your Safety Net:
  • For many professionals, a 3-6 month cushion is standard.
  • However, since you’re switching careers, consider extending this to 6-12 months.
• Calculate Your Safety Net:
  • Multiply your total monthly expenses by the number of months you wish to cover.
• Assess Your Current Savings:
  • Compare your current emergency fund to the calculated target.
  • If your emergency fund is not enough, develop a plan to gradually build it up via budgeting, cost-cutting, or additional income sources.

Hidden Costs of Job Switching

Let’s now take a look at some of the hidden financial and psychological costs of job hopping:

• Loss of Accrued Benefits:
  • Benefits like retirement contributions and bonuses are tied to your tenure; thus, if you switch jobs, you’ll forfeit these.
• Personal Branding and Training Investments:
  • You might need to invest in upskilling and reskilling to be competitive in your new role or industry, which can be quite expensive.
• Adjusting and Onboarding Costs:
  • Starting a new role often comes with a learning curve; the time and effort you spend acclimating to a new company’s systems, culture, and processes can lead to short-term productivity loss and increased stress.
• Potential Impact on Seniority and Career Progression:
  • Frequent career changes can sometimes reset your “seniority” clock, which means starting over in terms of promotion timelines and other company-specific benefits attached to tenure.
• Emotional and Psychological Costs:
  • Switching careers can lead to stress and anxiety, especially if the transition doesn’t go as smoothly as planned.

Negotiation Strategies for a Better Offer

Want to get the best possible offer from potential employers? Here are some strategies that can help:

• Research and Benchmark:
  • Before entering negotiations with your employer, gather data on your new industry’s salary ranges, benefits, and market rates so you have a solid basis for your request and boost your confidence during negotiations.
• Clarify Your Unique Value Proposition:
  • Identify and articulate the specific skills, experiences, and accomplishments that make you a valuable asset to your employer.
• Consider the Total Compensation Package:
  • Evaluate not just the base salary but also the bonuses, benefits, flexible work arrangements, and personal development opportunities.
  • Negotiating on multiple areas can lead to a more robust overall offer.
• Ask Open-Ended Questions:
  • Encourage dialogue by asking questions like “Can you help me understand how the compensation package was determined?” or “Is there flexibility around the bonus structure?”
• Be Prepared to Walk Away:
  • If the offer doesn’t meet your financial or career expectations, be prepared to decline the offer.
  • Knowing your limits helps you negotiate firmly without compromising on what’s important to you.

Exploring Alternative Career Paths: Should You Consider a Remote Job?

Looking for a work setup offering greater flexibility and access to the global job market without leaving your home?

If so, remote work is the way to go for you.

Although it has existed for years, it’s only recently that location-flexible careers started growing in popularity due to advancements in technology and evolving workplace cultures.

This trend enables workers to explore different work environments that better align with their lifestyle, values, and long-term goals.

Due to its demand, many companies in different industries are embracing this setup to attract top talent, further improving your chances of landing them.

Pros and Cons of Remote Work

Still on the fence regarding work from home jobs? Let’s take a look at some of its pros and cons:

Pros:

• Flexibility and Autonomy:
  • Many remote work setups allow you to set your own schedule and work from anywhere, which leads to a greater work-life balance.
• Costs Savings:
  • Eliminating the need to commute not only helps you save on transportation costs, but also on work attire, lunches, and other office-related expenses.
• Boosts Productivity:
  • According to research by Harvard University, knowledge-based workers are more productive in remote setups compared to the office.

Cons:

• Faulty Internet Connection:
  • Although government efforts have led to steady improvements, internet connectivity remains unstable in many areas of the country.
• Isolation and Loneliness:
  • Lack of face-to-face interaction can lead to feelings of isolation, which may affect your mental health and reduce opportunities for spontaneous collaboration.
• Communication and Collaboration Challenges:
  • Since you rely on digital communication tools to collaborate with your team, there will be instances where you’ll encounter misunderstandings or miscommunication during conversations.

For more information about this topic, click here.

Building a Strategic Exit Plan

Finally, it’s important to have a proper exit plan so you can leave your current job on good terms and safeguard your benefits.

Start by reviewing your employment contract, specifically, its notice period requirements, accrued benefits, and non-compete or confidentiality agreements (NDAs).

Next, write a clear and courteous resignation letter expressing your gratitude, your decision to resign, and the date your resignation officially takes effect.

Finally, complete all your remaining tasks or prepare detailed documentation of all your ongoing projects, processes, and other relevant information for your successor.

Positioning Yourself for Future Career Growth

Now that you’ve left your current job, what’s next?

Here’s how you can ensure that each career change contributes to your long-term career growth:

• Invest in Upskilling and Reskilling:
  • Pursue certifications, workshops, and online courses that are in demand within your chosen industry/industries.
  • When constructing your resume, emphasize your ability to acquire new skills, which is highly valued by employers in today’s fast-paced job market.
• Strengthen Your Personal Branding:
  • Ensure your resume, LinkedIn profile, and portfolio reflect your acquired achievements and skills.
  • Be prepared to explain your constant career changes as deliberate steps toward growth. Highlight your diverse experiences and how they could add value to potential employers.
• Build and Maintain Your Professional Networks:
  • Cultivate relationships with former colleagues, mentors, and industry peers, as they can help open doors to new opportunities and provide insights into industry trends.
• Align Your Career Change With Long-Term Goals:
  • Ensure that each career pivot aligns with your overall objectives.

FAQs: Common Questions About Career Change

Here are some of the most common questions first-time job hoppers ask before switching careers:

What Industries Have the Highest Job Security for Career Changers?

Industries that offer strong job security include:

• Technology and Information Technology (IT):
  • Cybersecurity, Cloud Computing, Software Development, and IT Support consistently show high demand as companies rely on robust digital infrastructures and secure systems to operate today.
• Healthcare (Telehealth and Health IT):
  • Telehealth platforms, remote patient monitoring, and health IT roles provide stable career opportunities since healthcare is always in demand.
• Education and E-Learning:
  • Remote education roles are on the rise as institutions and ed-tech companies continue to invest in digital platforms, making this sector a secure career choice.
• Customer Service and Technical Support:
  • With the shift toward online business operations, many companies outsource their customer service and technical support functions to remote teams.
• Digital Marketing and Content Creation:
  • As companies pivot their operations online, digital marketing roles have grown in demand.

How Can I Negotiate a Higher Salary at My New Job?

Start by conducting job market research on industry salary benchmarks for your role using resources like Glassdoor and industry reports.

Next, frame your career changes during your interview as deliberate moves that enhance your expertise and adaptability and emphasize how these have prepared you to deliver immediate results.

Finally, remember that your salary is only one part of your benefits; consider bonuses, retirement contributions, and professional development opportunities as well.

Is it Risky to Change Careers Without a Backup Job Offer?

Of course.

Switching careers without a backup job can lead to a period without a steady income, increased stress, and potential difficulties transitioning into a new field.

Fortunately, you can minimize these risks by setting up a robust financial safety net, assessing and updating your skillset for your new industry, and conducting thorough job market research.

Additionally, you can increase your chances of finding job opportunities by strengthening your professional network.

 

For many young professionals, a career change offers a great opportunity to quickly advance their careers and broaden their skillsets.

However, with great opportunities come great risks. Fortunately, you can minimize these by following the points mentioned above. 

Planning on shifting to a work from home setup? Or, perhaps you’re looking to finally work for a company offering remote-first job opportunities?

If you answered “yes” to either question, Remote Staff is here to help.

Our jobs list contains plenty of positions for you to choose from. These range from virtual assistant and online transcription jobs to online writing and design ones.

Ready to start working at home? Sign up here. Good luck!