The end of 2012 was a real nail-biter, with the nation speeding towards the dreaded fiscal cliff without brakes or a guardrail to prevent a catastrophe. Fortunately, the powers-that-be beat the deadline, and we are all safely on the right side of the cliff. Whether the deal that saved the day was a good one or not will be debated for months. One provision, however, is a great relief to the thousands of long-time unemployed.
If you’re among that group, you are probably rejoicing that unemployment insurance has been extended for another year. This spells R-E-L-I-E-F for thousands of unemployed still looking for jobs. Depending on your current financial situation and employment history, the size of the weekly UI check can make a significant difference in keeping you from teetering off your own personal financial cliff.
According to an article in USA Today, “Tax Deal’s Short-Run Cost Might Be Slower Recovery,” the tax increases and return of the pre-Bush payroll tax levels makes the deal a mixed blessing. Job seekers need to take a second look at their job search strategy and list of criteria in the light of the new provisions.
What types of “job insurance” should you look for in your next job? What could you negotiate as part of an employment contract to build a guardrail or a fence to prevent a personal financial disaster?
- A benefit package. Employers are already cutting hours and reclassifying employees to avoid offering and paying for expensive health benefits. Medical benefits with employer group rates are typically less expensive than anything you can get on your own.
- A benefit cost allowance. If the employer has already cut the medical benefit package, negotiate a monthly benefit allowance, over and above your salary, to help defray the cost of private insurance. While an employer can decide to change or cancel employee health benefits, they can’t cancel a private plan.
- Training. Jobs may not last forever, but employer-paid training goes with you. New technology affects almost every business or industry. Negotiate technical training as part of your hiring package. Proficiency in logistics systems, document control, inventory or other computer or web-based systems are great resume builders. Training is job insurance for your next position.
- Exposure. The opportunity to network with upper-level management, attend professional conferences and give presentations can help you build professional relationships and your reputation as a leader. Building a wide professional network is job-search insurance when you’re looking for your next position.
- Termination clause. Some employment contracts require an employee to pay back relocation fees and other hiring costs if they leave within the first six to 12 months. Read the fine print. Put your hiring bonus in the bank or mutual fund for a year just in case you and your new employer part company. Depending on your level in the company, you can also negotiate a severance package in case of job elimination or termination not-for-cause. This bit of financial insurance can help keep you going during a job search better than a small unemployment insurance check.
While there is no real job insurance, a beneficial employment contract can give you some peace of mind in a new job. The country is already gearing up for higher taxes and fewer entitlements. Avoiding one fiscal cliff doesn’t ensure there aren’t a few more around the next corner. With this in mind, it’s every person’s responsibility to realistically assess his own financial situation and make provisions for his own financial stability.
Photo Source. Freedigitalphotos.net
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