Radhika has just got an exciting job offer from a leading MNC in India. She has been looking for a change for quite some time now and this opportunity seemed just right. However,her father asks her to proceed with caution and make an informed decision,keeping the pointers below in mind. Consideration of Salary and CTC The most common reason that people change jobs is for a higher salary. However,Radhika should consider non monetary factors like her current job profile vis a vis the new one. Her job profile should ideally provide an opportunity for self development as well as positive contribution to the organisation. This factor becomes important when the company is downsizing and the job market is bad. Growth within the organisation,work environment,appraisal process,reputation of the company and its financial condition,job stability,opportunity to work abroad etc should also be taken into consideration. Computation of CTC or cost to company is not standardised. Different companies have different methods of calculating CTC. The term essentially means the cost a company has to incur for the employee. It includes salary as well as perks paid to the employee. However,some companies also stretch it to include costs like the cost of square feet area of the workspace cubicle and the cost of furniture etc. Therefore Radhika should take a detailed look at the CTC compensation package. She should compare her in hand salary rather than CTC. While comparing her salary,Radhika should consider the bonus amounts paid by the previous employer. Further,with her annual appraisal also around the corner,she should use the expected increase in salary for comparison with the new offer. Further,Radhika is not interested in some of the benefits the new company offers,like a home loan,car loan,subsidized education etc. Since she has a car and a home in her name and does not want further education,she should negotiate these perks in the CTC for a higher cash amount. Radhika should compare the perks that both companies offer. Her new company offers fringe benefits like canteen services,transportation services and company paid cell phone in addition to the perks that her previous company provides. Radhikas father advises her to compare the insurance coverage for both companies. A good extensive insurance coverage cannot be compromised. Form 16,PF transfer and receiving one time benefits Her father reminded Radhika to part on a good note with her past employer. One may need a reference from the previous employer at any time in the future. Getting a No Dues Certificate,experience letter,salary slips and relieving letter is important. At the end of the financial year,Radhika must also remember to get her Form 16 from the previous employer. Radhika should also promptly transfer her Provident Fund balance to her new employer. As Radhika also has ESOPs with her previous company,she should remember to find out how many rights have vested and then cash them. Author is CEO,BankBazaar.com
