Compared to our parents who typically stayed in a job all their life, we tend to keep moving.
Here’s a checklist to follow when you switch jobs to ensure that the move is smooth and that you fit into your role comfortably.
#1: Don’t resign till you get a written confirmation
Do not put in your resignation, unless you get a written confirmation along with a soft copy of the actual offer letter. Even then, resign only if you decide to accept it.
A written confirmation will allow you to quit with minimal risk.
#2: Part on good terms
It can be tempting to lash out at your soon to be ex-employer during your notice period for all the bad times you might have gone through. Leaving a company in bad terms can be disastrous for your career.
After all, it’s a small world out there.
Try your best to part with your employer on pleasant terms. Prepare an official handover document for the new employee who’d be replacing you. Stick around till the new person is trained enough, even if it means extending your notice period by a week or two.
#3: Understand your new compensation fully
Here’s a real deal breaker.
A lot of people only consider the CTC or Cost To Company specified by the employer during their offer negotiation time.
On paper, you might see a higher compensation as compared to your current salary. In reality, though, your in-hand salary might be far less.
Different companies have different ways of calculating benefits. While some companies count all the costs associated with retaining you, including benefits like health insurance or EPF contribution of the employer in your CTC, others might not add all perks.
Understand all the deductions and the actual in-hand salary you will be getting before accepting an offer.
#4: Managing multiple bank accounts
Chances are, the bank you have your salary account with, might not be the one your new employer deals with. In most cases, you’ll end up having multiple bank accounts.
In case the banks are the same, talk to your HR and get them to use the account you already have for crediting salary. You’ll have to request a change of employer with your bank.
#5: Manage your Employee Provident Fund (EPF) account
If your current employer provides you EPF benefits, you can either choose to continue using the same EPF account with the new employer or withdraw the money when you quit.
It’s recommended not to withdraw the money but rather keep using the same EPF account even as you change jobs.
#6: Collect the required forms and file it for future reference
You need to collect and file all forms, including form 16, relieving letter, experience certificate, past few months’ payslip, etc.
In some cases, you will receive form 16 only later as most companies give it out to employees in May or June.
You can verify the TDS amount by downloading the Form 26AS from the income tax department website, when filing your taxes.
Your new employer would generally accept your previous payslips as proof of tax deductions even if you do not have your form 16 while joining.
#7: Understand any new tax implications
Does your new salary structure push you in to a higher salary bracket? Make sure that you factor in the higher tax you might need to pay. Plan to save your taxes accordingly.
#8: Stick with your saving habits
If you save 30% of your current Rs 50,000 per month salary, and your new monthly salary is Rs 60,000, you should end up saving Rs 18,000 instead of Rs 15,000.
Frequently Asked Question
What you should look for when switching jobs is exactly the reason for quitting your current job. It can be a higher salary than what you are getting, career development or promotion, complete career change, or even a more stable company with a better work environment.
Work transition means there is a lot of new things to learn and understand rather than doing the same thing every day as in your previous job. You need to be prepared mentally in the first place for the new environment, read well about the company, study your job description, listen instead of talking, the more you listen the more you learn. Try using some time management and task management tools on your first days not to feel lost with the new duties.
There is no maximum duration for how long you can stay in your current job as long as your career is moving forward but keep in mind that changing work environment helps you enhance your skills. On the other hand, the minimum duration to spend in a company should not be less than 2 years.
It is not recommended to switch jobs before spending 2 years in your current job. The best time to leave a job is when you get a better opportunity than what you have or when you feel there is no more career development waiting for you in your current job. Many reasons can drive you to take this decision like not being comfortable with your business colleagues, not being able to perform your job well, or finding the job much less thank your experience and capabilities.
When transitting from one job to another make sure you give your current employer enough notice period for a smooth transition, make a proper handover, make sure you collect any personal information or documents you might have kept on your business laptop or email. Try t take a short break in the middle to prepare yourself mentally for your new duties.