Get these tips as a free eBook by joining the newsletter here.
Tip #21: “Benefits Sometimes Aren’t”
A benefit is called that because it’s supposed to benefit you, but sometimes these can vanish. In the U.S., the one most likely to do this is the matching retirement contributions the employer makes for you. You must be an employee long enough for them to start doing it, for one, but then you must be “vested.” That means if you leave at one point, you keep none of their matching, or 20%, then 40% and so on, each year letting you keep more of it. This varies by the company.
Tip #22: “Vacation May Vanish, Too”
You typically earn vacation hours for each pay period you are employed, but it pays to ask what happens when you leave the company without having used it. Do they pay it out? If so, in the U.S., they will typically decide how much cash each hour is worth and pay you for the accrued balance. If it’s worth $50 and you have 4 hours, you get $200. This can add up to a significant windfall after termination. Or it can add up to a big fat goose egg.
Tip #23: “Vacation Can Add Up”
In the U.S., the longer you are employed by the same company, the more hours of vacation you typically accrue, but this isn’t true in some countries, where it is the same regardless of tenure. In America, it can be significant and a true loss if you switch jobs. However, employers are often willing to “play ball” and give you more than the usual offering if you ask. For example, maybe two weeks is standard, but you tell them you have three at the current job and so they bump it up a week. This is more likely if you are older as they understand you have probably become accustomed to it.
Tip #24: “Can You Go Negative?”
Sometimes you have a vacation planned. And then you are changing jobs and won’t have enough vacation accrued at the new job by the time the trip starts. Always ask if you can go negative on your balance. Employers often understand plans have changed and will allow this, on a case-by-case basis, usually with the caveat that they’re unlikely to make a habit of it, nor should you. It also depends on how negative you intend to go. The circumstances will determine their willingness.
Tip #25: “Keep a List of Your Choices”
You are often shown a dizzying array of benefit choices, particularly for health and dental. Once you’ve made your choices, write them down in detail. This helps when you have to re-do these choices the next year or when changing jobs and you need to compare how good an offered benefit package is, or simply to choose something comparable.