When considering a job change, it's tempting to just look at the difference in salary between the two positions and base your decision on that. But before deciding whether to change jobs, you should consider a host of factors, including:
- 401(k) plan-- Compare the 401(k) plan features at both employers. How long will you have to wait before you start making contributions to the new plan? What matching contributions does each employer make? What investment alternatives are available with each plan? 401(k) plans are becoming increasingly important to help fund retirement, so you should thoroughly review each plan before making a job switch.
- Health insurance-- How much of your health insurance premiums do you have to pay at each employer? How does the coverage compare? What out-of-pocket expenses are you likely to incur with each plan?
- Other fringe benefits-- Thoroughly compare the fringe benefit package at each employer, looking at vacation days, sick days, life insurance, disability insurance, dental and optical insurance, and other benefits.
- Commuting costs-- How far is each job from your residence? Will there be additional commuting costs involved, including gasoline, parking fees, and wear and tear on your automobile? Will you have to spend additional time commuting, keeping you away from your family longer?
- Other costs-- How do you have to dress at each job? Will you need to purchase new or more expensive clothing with the new job? Will you have to go out to lunch more frequently?
Advancement opportunities-- While this is difficult to quantify, what are the advancement possibilities at each job? You might want to stick with a job with a lower salary if in the long run you have better advancement opportunities.