Workforce Changes – The Great Recalibration and Its Impact on You

BY JJ MONTANARO, CFP®

Change is constant. That’s always been the case, but in recent years, spurred by the pandemic, career paths, organizational structures, expectations and even the thinking around the physical location of work have all been transforming at a rapid-fire pace. The most recent trend sees employers pushing for employees to return to the office. With all that is in flux, it seems like a good time to step back and focus on a few fundamental, and evergreen, money considerations related to selecting your next job, career or career path. Here are five:

• Work generates money, and money, opportunities. The money part may seem obvious since work is the engine that provides everything from food, clothing and shelter, to education, vacations and even our ability to support worthy causes. However, it’s not just the money. Workplace benefits like life and health insurance, disability coverage, spending accounts, paid time off and more tailored benefits, like adoption and fertility treatments, vary by employer. So, beyond just money, evaluate the entire total rewards package a particular opportunity offers.

• Work impacts both sides of the budget. Earlier this year, my team returned to the office for a very old school five days a week. This got me thinking (and feeling!) how the expenses associated with work could be a very real factor in your next work-related decision. For me, transportation (more gas), auto insurance (more miles) and even food expenditures (fewer lean cuisines) have all risen as I’ve shifted back to the office. I don’t spend a lot on haircuts, but I could see how personal care, dry cleaning and similar expenses could fluctuate depending on the type of position you are evaluating. All that, and child care to boot – make sure you count all the costs.

• Work allows you to prep for your financial future. At some point, most of us will leave the workforce. And even if it’s not our choice, it may be a necessity. Leveraging 401(k), 403(b) and other employer-provided retirement plans can help position you for that next phase of life. And unlike in the military, these types of plans may vary significantly from employer to employer. Do you have a retirement plan? What are the eligibility rules? Is there a match or profit-sharing program? Questions like these can help you differentiate opportunities.

• Work can help with the pivot to civilian life. Your family will likely make the leap to civilian life decades before you leave the workforce. Having crunched the numbers with a lot of folks facing that challenge, I can say definitively that a military spouse’s employment can be the difference between a struggle and a seamless transition.

• The rules are changing, but challenges remain. Perks for military spouse employers, increased licensure portability and even tax credits for military spouse hiring are all relatively recent developments. That being said, choosing an approach or opportunity that fits your military lifestyle is always an important consideration.

I’ve always been a proponent of focusing one’s efforts on things within your power. Do that, and regardless of how the employment or financial landscape shifts, you will be best positioned to make the most of it.