Resigning, Retrenchment or Changing Jobs
Changing jobs, resigning, or facing retrenchment can be some of the most significant and daunting life events, affecting not only our careers but also our emotional and psychological well-being.
Whether you're leaving a job by choice or circumstance, it's essential to navigate these transitions with care and consideration. The process of letting go of a familiar routine, colleagues, and sense of identity can be overwhelming, leading to feelings of anxiety, uncertainty, and even grief. Moreover, the pressure to make the right decision, manage the transition smoothly, and secure a new opportunity can be intense.
Understanding Job Benefits
Do you know exactly how much you make each month? It might seem like a simple question, but your employer could be covering much more than the cash you receive in your account every month.
What benefits does the new employer offer? Are they offering a higher nett salary? Then check if they are offering the same or more of the employee benefits, e.g. pension, group life, medical aid, funeral, etc. You may end up on a lower nett salary if you have to pay for these yourself.
Understanding your payslip is very important before you even decide whether you should take the job or not. Visit the Understand your Payslip page.
Financial Benefits
Salary and bonuses, Retirement funds (e.g., pension, provident, or retirement annuity), Medical aid contributions, Life insurance and disability coverage, Employee, wellness programs, Flexible spending accounts (e.g., medical savings accounts), Employee assistance programs (EAP)
Health & Wellness Benefits
Paid time off (vacation, sick leave, family responsibility leave), Mental health support, Gym membership or on-site fitness center, Wellness programs (health screenings, workshops), Employee discounts on health services. Consider the company culture and values alignment with your own.
Professional Development Benefits
Training and education programs, Professional certification or licensure support, Mentorship programs, Career advancement opportunities, Networking events and conferences
Work-Life Balance Benefits
Flexible work arrangements (telecommuting, flexible hours), Parental leave and family support, Employee recognition and rewards programs, On-site childcare or childcare assistance, Employee discounts on family services
Other Benefits
Commuter benefits (travel reimbursement, parking), Meal subsidies or on-site cafeteria, Employee discounts on products/services, Company-matched charitable donations, Employee recognition programs
Questions to Ask Potential Employers
1. What benefits are most valued by employees?
2. Are benefits equal across all positions and departments?
3. How have benefits changed or improved recently?
4. What is the typical annual increase in benefits?
5. Are benefits customizable to individual needs?
Resignation & Retrenchment
Share Scheme
Some employers have some kind of equity or share incentive scheme for employees. If you are one of them, you hopefully understand your equity plan and the milestones needed to unlock value.
When deciding whether to resign, make sure you understand the conditions under which you can receive the money from this scheme. If your equity was scheduled to vest over five years, and you are in your sixth year at the company you can access your shares and your decision to resign might be easier, but if you have not yet met certain conditions you might want to hold off your resignation until you hit the right milestones.
Unpaid Leave Days
Check with HR what the policy is on leave days and make sure you get paid for them.
Group Life Cover & Funeral Cover
Keep your Group Life Cover. Don't leave yourself unprotected. Explore continuation options. Before departing your employer, inquire about the continuation option within your group life cover. This valuable feature allows you to convert your group coverage into personal cover, ensuring uninterrupted protection.
Key Benefits of Continuation Options
1. No medical underwriting required
2. Lower premiums due to retained scheme rating
3. Seamless transition to personal cover
4. Continued financial protection for you and your loved ones
Medical Aid Cover
Although financially it might be a challenging decision to make, terminating your medical cover might cost you more later because if you are without medical cover for a specified period of time, the medical aid companies will put loadings and waiting periods the day you want to resume your medical aid cover.
Consider downgrading your medical aid plan until your financial circumstances improve. Ideally, chat with an independent health advisor who can assess the best option for your health status and level of affordability.
The Hidden Costs of Terminating Medical Aid
If you cancel your medical aid and remain uncovered for a specified period:
- Loadings: Increased premiums when you rejoin
- Waiting periods: Delayed access to benefits
- Pre-existing condition exclusions
Get Benefit Counselling for your severance and Retirement benefits
Again, this is a free service offered to employees via the fund. Setup a session with a trusted financial advisor to help you decide what to do with your severance package and your retirement benefits.
Take advantage of this expert guidance to:
1. Understand your severance package options
2. Make informed decisions about your retirement benefits & preserve your retirement savings
3. Clarify tax implications
4. Create a personalized financial plan
Speak to your Bank and Creditors
Banks and creditors are generally sympathetic in cases of retrenchment, especially where customers take steps to proactively communicate with them regarding their changed financial circumstances. Be sure to let your bank and creditors know about your retrenchment before any debit orders or instalment payments bounce.
Before missing payments or experiencing bounced debit orders:
1. Inform your bank and creditors about your retrenchment
2. Discuss potential payment arrangements
3. Explore temporary repayment relief
Register Your UIF Claims
Register your UIF claim as soon as possible, keeping in mind that there may be delays. Ensure that you have all the documents you need from the employer to ensure a smooth process.
Have an Emergency Fund. If you don't have one, start immediately.
This should go without saying; If you do not have another job immediately lined up, make sure you have as large an emergency fund as possible. You never know when your job hunt might last far longer than you expect.
Don't Invest in Get-Rich-Quick Schemes
There are a lot of investment scams around, rather seek the advice of a qualified financial advisor. These schemes promise unrealistically high returns, lack transparency, regulation and guarantee overnight wealth
Be cautious of:
- Unsolicited investment offers
- Unregistered investment schemes
- Pressure to invest quickly
Request an appointment with a Financial Coach
Losing your job can be a devastating experience, triggering a mix of emotions that can impair your ability to make rational financial decisions. Amidst this turmoil, it's essential to seek support and guidance to ensure your financial stability.
Develop a Comprehensive Financial Plan:
- Get a clear understanding of the Two-Pot system and tax implications related to your retirement fund
- Emergency funding and savings
- Severance package and retrenchment benefits
- Living expenses and essential costs
- Debt levels and repayment strategies
Five mistakes to avoid if you're being retrenched
Five mistakes to avoid if you're being retrenched
Once you’ve recovered from the initial shock of being informed of the retrenchment, there are some key details that will have profound financial implications and that you cannot afford to overlook as you undergo one of the toughest processes in your working career. Sherwin Govender, business development manager at Glacier by Sanlam, unpacks some of the most common mistakes made by people facing retrenchment.
Read the Sanlam article HERE
Resignation, Retrenchment, Dismissal
Preserving your fund benefit when you leave the Company not only provides a huge tax benefit, but is also essential to ensure sufficient provision for your retirement.
Members have the option to convert or continue their death cover.
If you are leaving the Company, you may wish to preserve your fund benefit. The documents below will assist you with this important decision.
Members have the option to convert or continue their death cover.
If you are leaving the Company, you may wish to preserve your fund benefit. The documents below will assist you with this important decision.
Read the Sanlam article HERE