Navigating Change in the Modern Workplace
For many Americans, the rules of the workplace have quietly changed over the last few years. Remote or mobile work had become the norm for many employees and returning to the office now represents another shift. To support their employees and retention efforts, many employers have instituted new benefits related to childcare, education, wellness and personal enrichment. However, the shifts in workplace rules have prompted employees to reevaluate their work-life balance and priorities, leading to changes that better align with their needs.
How Employees Face Change in the Workplace
Faced with changing workplace rules and norms, employees are taking a fresh look at the decisions they’ve made around work and life. Many of them are reevaluating their lives and reconsidering the ways in which their careers support (or don’t support) their priorities. With a clear idea of their priorities, some employees are deciding to change their careers, their jobs or the way they work.
Examples of the priorities driving employees to make major changes.
- Improving their mental health or well-being
- Taking care of family or loved ones
- Being able to work remotely
- Achieving a higher-paying job or salary on par with infilation
- Downshifting to a more cost-effective lifestyle
- Finding work with a more flexible schedule
- Relieving feelings of burnout on the job
Accepting Change in the Workplace
Whether you’re a staff employee or in a supervisory role, if you’re thinking about making a change in your career, it’s important to understand your priorities and the challenges and opportunities ahead. Getting your finances in order can maximize the opportunities open to you.
Financial Planning for Career Changes
- Understand the job market. Research the job market in general and for the specific types of roles and industries you’re interested in.
- Secure a new job before leaving. Having a new job lined up can help protect your finances and prevent employment gaps.
- Build an emergency fund. Save enough to cover at least 6 - 12 months of expenses.
- Consider the impact on benefits. Leaving a job usually means giving up benefits like health and life insurance, which can be expensive to cover on your own. You may also need to foot the bill for training, equipment and supplies for your new career.
- Update your savings approach. If you secure a higher-paying role, reassess your savings strategy/approach to align with your new financial situation.
Budgeting Tips for When You’re Between Jobs
If you find yourself between jobs, taking on debt to sustain yourself can be an option, but watch out for unnecessary costs. Consider these strategies:
- Beware of high-interest debt. Be cautious with credit cards that charge high interest and make sure to stay within your budget as much as possible.
- Explore business credit options. If you’re starting a new business venture, you may qualify for credit cards designed for new businesses, even if you don’t yet qualify for a business loan.
- Consider home equity. See if it makes financial sense to use the equity in your home to obtain a home equity line of credit, which you might need to cover expenses like medical bills or major repairs. Alternatively, refinancing your home loan could be a way to lower your interest rate and reduce your payments. Remember to factor in any closing costs involved and your ability to make updated payments long-term.
What These Workplace Changes Mean for Employers
The cultural shift toward more meaningful work and prioritization of work/life balance is a call to action for employers. If you’re in a leadership role, now is the time to reevaluate your approach with employees, including placing a greater focus on the mental health and well-being of your team.
Tips for Retaining Employees
- Rethink compensation and benefits
- Provide greater flexibility in work arrangements
- Offer childcare support
- Prioritize employee education
- Implement recognition and rewards programs
- Increase promotions from within your organization
Workplace Changes Should Bring Optimism
Evolving workplace dynamics present opportunities for both employees and employers. By rethinking priorities and aligning with what’s most important, individuals can find more fulfilling careers, and employers can create a more responsive and supportive work environment.
If you’re considering making career or personal changes, Key is here to help. We offer services, programs and one-on-one consultations to make it easier to manage your finances in ways that support your goals now and in the future.