Chapter 4

Building Your Dream Career

Finance and Work

Getting More from What You've Got

Whether you have one job throughout your lifetime, or twenty, one fact remains: your career is the primary driver toward your financial independence and your growing knowledge base. Therefore, it is essential that you squeeze out as much benefit as you can from each and every job you will have over the course of your career, in terms of both compensation and experience. You have to work it, girl!

If you're like many of us, you put in long hours for the sake of your career—sacrificing time with your honey, workouts at the gym, family commitments, and any little bit of “me” time. But how do you keep your job from becoming “all taking and no giving”?

In this chapter, we are going to explore ways to get your job working harder for you, as well as the opportunity to utilize employment to fully develop and enhance your potential for future growth. From your benefits plan to professional development to severance pay, there are plenty of areas where you may be leaving money on the table. Time to collect, sister.

How Can I Make My Job Work for Me?

Gossipy co-workers, grumpy bosses, evil photocopiers, or the inevitable run in your stocking: the workplace has oh so much fodder for headaches and frustration. But could that be a silver lining we see (or, wait, that's just the glare off your streaky computer screen)? Whatever it is, let's have a closer look.

For women working nine to five, eight to six, or ten to midnight, your job not only takes up a majority of your waking hours, it shapes your mind, affects your mood, and, to some extent, determines who you are in the world. It may be hard to believe (or not so hard at all), but those who are employed full-time actually spend the majority of their waking hours on the job and with co-workers, so when you spend this much of your time devoted to something (anything!), it's impossible not to be influenced by it in a very meaningful way.

It isn't just the job either; it's how you do the job. The quality of work you do every day has a huge impact on your self-esteem; conversely, your pride and sense of accomplishment influence your attitude toward your job. (Think about it. Was it the cockiness that made Simon Cowell famous or the fame that made Mr. Cowell cocky? It's all interrelated.) The experiences you gain and the level of success you attain will also affect your future career options. And, of course, doing a job well doesn't just apply to the high-paying “status” jobs, but to each and every job you do, no matter the title. (Want proof? Talk to Ursula Burns, the executive assistant turned CEO of Xerox, and the first African-American woman to be CEO of a Fortune 500 company. She didn't let any title stop her from climbing—not clawing—her way to the top.)

Yes, no matter the job, it's the right kind of attitude (as in, the way you carry yourself and the pride that you put into your career and your work life) that has the potential to move you forward and up the ranks. So, grab onto that ladder and start climbing!

Someday This Job Will Make Sense

Of course, getting to the point where your job is infinitely rewarding and fulfilling usually takes time. Nearly all occupations require training and learning on the job, long hours of not-so-glamorous tasks, proving (and improving) your abilities, education, and designations—and all for what? To gradually earn positions of greater authority and autonomy, of course. Yep, it's a climb (and a grind).

According to the U.S. Bureau of Labor Statistics, wage and salary workers remain with their employers for approximately four years.¹ Spread over the 40 years of a typical working life, that translates into an average of 10 jobs throughout a person's career. Add in part-time jobs and contract positions, and you may be looking at even more.

So here's what we want you to do: think of your career as a feature-length film. It may be long, diverse, and not necessarily linear. The jobs you take, even if they're not your “dream” jobs, are like sub-plots of the film, each with its own purpose, storyline, and characters. (Whether yours resembles The King's Speech or The Hangover is, well, totally up to you.)

Each job will put you a little further ahead in terms of accumulating wisdom, skills, and, hopefully, money in the bank. And don't forget your supporting actors; they will play a key role in elevating (or conversely, impeding) your craft.

So, play your part with intelligence and conviction, be mindful of your supporting players, and eventually, the jobs will start to add up, larger themes will emerge, and something bigger and more meaningful will take form: your career.

Golden Rule: Pay Attention

There is no job or career path where you don't have to worry about money. There are many examples of celebrities who failed to keep an eye on their money or trusted the wrong people, and went bankrupt or faced financial crisis. So guess what? It really doesn't matter how much you earn.

As your paycheque grows, so do your responsibilities and obligations. So stop chasing unicorns (or powerful unions or status uniforms) and accept that paying attention to your money is a requirement in this life! A great job or a successful business can help make money matters a little more fun and possibly less stressful, but they never excuse the need to pay attention to your money.

First Things First: How Do You Want to Work?

At some point during your career, you may find yourself with the option of accepting a job as a full-fledged employee of a company or as an independent contractor (essentially meaning that you are self-employed). Both options come with advantages and drawbacks. This is not a time to throw caution to the wind; take the time to understand your options and think them through.

There are many factors that are important to consider when choosing how to work. For example, if you are planning to become pregnant in the near future, you may be keen to sign up as an employee of a company to gain stability, as well as to take advantage of the maternity-leave benefits, which would not be as readily available to you as an independent contractor. On the other hand, if you prefer to do most of your work at home in your bunny slippers or on a cellphone while on the go, you may choose to work as an independent contractor and take advantage of the flexibility and work-related deductions for income tax purposes.

When evaluating your options, consider the type of student you were in your university or college days. Were you the type who preferred to study in a group and learn from an instructor? Or were you the type who actually got better grades when you skipped class, studied on your own, and set your own timetable and lesson plan? We're sure you can figure out where we're going here. If the former rings a bell, you probably thrive when surrounded by colleagues in an enriching work environment. And if the latter calls out to you, you're probably reading this at 3 a.m. after finishing up your last contract project. As with much in life, when looking toward your future, always look for hints in the past.

Employment versus Contracting

As a general rule, employees and independent contractors are defined by the following factors:

• how much control the payer has over the worker;
• whether or not the worker supplies her own tools and equipment;
• whether the worker has the right to subcontract some or all of the work;
• the degree of financial risk taken by the worker;
• the degree of responsibility of the worker's investment and management (who is boss);
• the worker's opportunity for profit; and
• any other relevant factors, such as written contracts, documents, and the like.

The Takeaway

Tax authorities typically have criteria that determine whether or not a person is an employee or contractor, based on some of the factors listed above. This is important to understand, particularly if you think you are an independent contractor, but end up being deemed an employee. This situation has a number of consequences, such as contractor-related expenses potentially not being deemed tax deductible, requiring you to make up any necessary withholdings, perhaps with interest and penalties.

Know where you stand on these tax criteria before the government comes a callin'. A tax professional can help.

Golden Rule: 80 Per Cent of Net

When you accept a compensation offer, ask for an estimate of the amount of cash that you would receive on a net basis (i.e., after taxes and other required deductions). You might be surprised at how much less the net amount is (where did my money go?). This will give you a sense of what you will actually take home. If you can live comfortably on 80 per cent of the net amount, then you know there will be room to save, have money for emergencies, and invest while you pay down any debt.

Signing on the Dotted Line

Landing a new job is a time to celebrate, especially when it comes with an “enhanced” paycheque! Indeed, if the pay is truly fabulous and the job tremendously exciting, it can be tempting to sign whatever offer they put in front of you (let's get this party started, right?).

Slow down. Put down the champagne bottle for just a moment and take the time to read the details. Yes, those pesky notes in fine print. In addition to the basic employment matters, such as the position and compensation specifics, employment agreements may include the following:

• Code of conduct

  This guideline stipulates the manner in which employees are required to behave, as well as specific actions or behaviour that will not be tolerated and can be grounds for suspension or dismissal. Be mindful that rules could apply to behaviour during both the work day, on-line (hello friends tagging you on Facebook!), and at any company-related social functions during off hours (so think twice before you reach for that third vodka-cran at the office wind-up).

• Confidentiality provisions

  Employees are typically required to keep any employer or client-related information confidential; this clause may remain in force even after you leave the company's employment. Always follow the rules, even during after-work dinners with co-workers. You never know who might be at the next table.

• Non-competition clauses

  This type of clause prohibits employees from becoming employed with the company's competitors for a period of time (sometimes several years), after ceasing to be an employee of the company and could apply whether you leave voluntarily or are dismissed.

• Non-solicitation clauses

  This type of clause prohibits employees from approaching the company's customers after leaving employment with the company, and may also extend to not allowing former employees to approach their former co-workers to offer them employment elsewhere. Again, this type of clause can remain in force for several years, so if your bright idea is to quit your job and take over all of those customers you have such a great relationship with, think again!

Not adhering to these provisions may not only set you back professionally and financially, it can also land you in court.

Consider this as well: typically any materials (including intellectual property) that you develop while employed are the property of the employer, not you. So, any steps to commercialize that great web program you developed and distribute it to the mass market could result in big trouble.

Similarly, even more personal intellectual property (say, the novel you've been writing and piecing together for years or a small business that you work on after hours), could be deemed to be the property of your employer. It's worth looking into seeking permission in advance, and potentially having the employer sign off on any ownership or rights to your newest venture, provided it is not deemed to be in conflict with your employment contract. When in doubt, talk to a lawyer specializing in intellectual property or employment law.

Above all else, read your employment agreement carefully and be familiar with the contents of it during the course of your employment. If you are unsure of the terms, seek out assistance from a lawyer, human-resources professional, or someone you trust who has a good level of career experience.

Once you've done that . . . have that glass of champagne. (Just not at your new desk; we're pretty sure there's a rule about that, too.)

Best Job with Benefits

Compensation is about so much more than just the cash. Flexibility, autonomy, and a self-managed work environment can provide a level of fulfillment that cash alone cannot.

Younger employees (who never get sick and believe they will live forever—is this you?) tend to downplay the value of non-cash compensation, such as employee benefit programs. Yet for parents with growing children who need braces, professional counselling, and allergy prescriptions, a robust benefits program can be a huge incentive.

Let's take a look at some of the common types of benefits a new employee must consider when evaluating a job opportunity. (As for those “fringe benefits” such as free sandwiches during board meetings, a headset for your phone, or an office with an ocean view (ha!), we'll leave these to you to negotiate. Do us proud.)

• Health and dental care: These programs cover health-related expenses, including health and dental visits, paramedical services (such as therapeutic massage therapy and licensed nutritional services), prescriptions, facility-related care, and various health-related items (i.e., prescription glasses, prostheses, etc.). Coverage can vary greatly, depending on the plan, in terms of services that are covered, annual dollar limits of coverage, and employee-paid deductibles. Benefit plans can provide for single coverage (for the employee), or coverage that extends to the employee's family (i.e., spouse, dependants, etc.). There may also be various levels of coverage available at different price points, and plan costs may be paid by your employer, paid by the employee, or shared. Look at your history of claims and your personal concerns to get a sense of an appropriate level of coverage for you and your family. If you anticipate significant dental or prescription drug needs, for example, you should factor that into your choice of package.
• Health spending accounts: This type of program generally provides employees with a specific dollar amount per year (either a fixed amount or based on a percentage of salary) that can be spent on an employee's health-care requirements. These plans give employees added flexibility, in terms of how the funds can be allocated, so long as they are considered to be medical expenses (often, as specified by tax authorities) and can also be used to top up more traditional health-care plans.
• Life insurance: Comprehensive benefit plans may include life-insurance coverage of a specified minimum amount (say two times an employee's annual salary) with the option to purchase additional coverage, often at a relatively low rate. Life insurance is also an excellent benefit that can be used to cover any outstanding debts in the event of your death, as well as to provide for your family or beneficiaries. In a group plan, you don't typically have to take a medical test or otherwise qualify and the cost is usually lower than that of an individual plan.
• Employee-assistance programs (EAP): These plans provide confidential counselling services to employees and their families and may also include financial and legal counselling, with qualified professionals. Given that most people experience a crisis of some type during their working life (i.e., divorce, death of family members, illness, substance abuse, problems with children, legal situations, etc.), an EAP can be a valuable lifeline when you need help. Ask your EAP provider if you can choose a local service provider, as access to local professionals may be of more use in certain situations.
• Professional development programs: One of the benefits of being employed by a big organization is that they typically have a number of professional development programs available and will often pay for courses that are relevant to your job. Take this as an opportunity to advance your knowledge for free and learn all you can: complete a professional-designation program, improve your PowerPoint or accounting software skills, or take a conflict-resolution course (comes in handy when negotiating with your husband about dishwashing duties).

The Takeaway

Benefit plans can amount to thousands of dollars of coverage that your employer is paying on your behalf each and every year that you are under their employment. Although this might be difficult to quantify as an employee, the message becomes evident if and when you become self-employed and have to seek out and pay for this type of coverage on your own.

Particularly in terms of health and insurance programs, the greatest value is often in not needing the coverage, but in knowing that it is there for you if required. Peace of mind is underrated.

Golden Rule: Your Benefit Year

Make sure you know whether your benefits begin and finish over the course of a calendar year, over your employer's fiscal year, or from your employment start date. If you don't know your plan year, you could miss out on valuable benefits.

For example, if your plan year starts January 1 and you have not used your $2,000 dental limit before December 31, you will lose it; however, you can plan around this so that the majority of the work you need will be covered. For example, if you have $3,000 worth of dental work to get done, schedule some procedures prior to December 31 to use up the $2,000 for that year, and have the remainder done after January 1, when a new $2,000 becomes available. You can protect your cash flow by making the most of your benefits plan.

Disability and Critical-Illness Insurance: the Basics

1. Disability insurance

Women are statistically more likely to suffer a prolonged disability than men, so this is an important benefit to understand and consider. If the benefit is employer paid, then the benefits are typically taxable; however, if you pay the premiums through payroll deductions, the benefits are typically tax-free. Disability coverage typically comes in two varieties: long-term disability insurance and short-term disability insurance, both of which have specific requirements in order to collect the benefits. Also, because disability plans can be expensive for companies to provide, as compared to other types of benefit plans, there may be a minimum amount of time on the job, or a “waiting period” that must occur, before new hires can be covered.

But disability coverage has limitations and doesn't cover all eventualities:

• It doesn't replace your full income; only a portion of it, which probably won't allow you to maintain savings.
• Depending on the type of coverage, you may qualify for benefits for only a limited time.
• Coverage usually stops at age 65 or retirement, whichever comes first. After you retire, you may no longer be insured.

2. Critical-illness insurance

This type of insurance protects you in case of a serious, life-threatening illness and typically provides a specified lump-sum payment under specified circumstances, giving you financial freedom during a time of crisis. There are various types of coverage available and it is important to read the fine print to understand the terms and conditions, as well as the particular illnesses and circumstances that are covered.

It can be a powerful addition and complement to disability insurance, in that it comes in to cover what disability insurance can't. Critical-illness insurance:

• typically provides a lump sum of tax-free money 30 days after diagnosis of any one of the major illnesses listed in the policy, such as heart attack, stroke or life-threatening cancer;
• can often go to age 100, which is important because illnesses, such as heart disease and cancer, are more likely to appear after age 65 (when disability insurance usually stops);
• benefits will allow you to pay for whatever extras you choose, such as private nursing care or housing modifications (disability insurance can then cover basic living expenses); and
• is not tied to your ability to work, though disability insurance is. You can be eligible for critical-illness coverage even if you don't work, don't have an income, and therefore aren't entitled to disability insurance. And for employed people, if after a diagnosis you return to work and therefore aren't eligible for disability benefits, you can still be entitled to the critical-illness lump sum. In many cases, you can receive both.

Side-by-side comparison.

	Disability insurance	Critical-illness insurance
Waiting period	Generally between 30 and 180 days	Typically 30 days
Benefits	A preset percentage of income, paid monthly, usually for a limited time	Pays a lump sum from $10,000 to $1 million (approx.)
Taxation	Benefits are taxable to employees if they are funded by their employers; tax-free if self-funded	Benefits are tax-free
Coverage period	Usually to age 65 or until retirement	Up to age 100
Please note that all of the above are averages, estimates, and generalities. Always speak to a licensed insurance professional to secure the most accurate information and advice for your personal needs.

Golden Rule: Pay the Premiums

Whenever possible, pay 100 per cent of your long-term disability (LTD) and short-term disability (STD) premiums yourself. When you pay the premium, the benefit is typically not taxable. When your employer pays the premium, those benefits are typically taxable to you as income, which can result in an erosion of valuable cash when you need it most.

The premiums in most group plans for disability insurance are actually quite small, as compared to buying this type of coverage on your own, and are totally worth taking a small bite out of your current cash flow in order to protect this very valuable future cash flow, in the event of you being unable to work.

Free Money: Pension Plans

Paycheques come and go with frightening speed. It may only be when you see the quarterly statement of your pension plan (also known as your “group savings plan”)—should you be so lucky to have one—that you really start to feel that you are actually accumulating some degree of wealth. It's a great thing (talk about a sense of accomplishment!). Here are how these savings plans work.

Many companies offer retirement plans and other types of savings plans using payroll deductions to secure the same amount from you every month. This money is typically placed in a locked-in account that is held for your retirement. The real genius of this plan is when your employer provides a matching fund. In some cases, it's dollar for dollar; in others, it's a matching amount, up to a certain percentage. This is free money and must never be overlooked.

In most cases, if you leave the company before two years (which represents the vesting period of the plan), you get your own savings back, but not the portion that the company put aside for you. Keep this in mind if you are thinking about quitting your job after 23 months of service! By holding on for another two months, you will part on much wealthier terms (it's worth sticking it out, no?).

If you move between companies, it is sometimes possible to move your retirement plan with you, but more often than not, you need to take the commuted value (the lump-sum amount of money you will receive when leaving your plan early, or the present value of the future pension payment) and put it into a locked-in account. As a result, you will not be able to touch these funds until your retirement, and then, only within a range so that the payment stream lasts for your predicted lifetime (based on actuarial tables).

Group savings plans typically come in two varieties: defined benefit and defined contribution:

1. Defined benefit: “old school”

Defined benefit plans provide the pensioner with guaranteed income. You and your employer contribute every year, and the amount you receive in retirement is based on a formula, often related to your five years of best earnings (or typically, your last years' worked, due to seniority and inflation). The market risk is completely carried by your employer and not by you. You don't make any choices about where or how the money is invested because the end result of what you get is based on your income and years of service, rather than on an investment return.

Most of these plans began at companies decades ago under the assumption that people worked and contributed to age 65, got their pension and gold watch, and then died at age 70. During the tech boom, defined benefit savings plans were viewed as old school, but since the tech bubble burst, there has been a newfound appreciation of this approach.

Some companies, however, are crippled by their pension obligations as are taxpayers, since public-sector pensions are primarily defined benefit. The pensions are underfunded, once the lengthy retirement lives of pensioners today is considered.

The pensioner is at risk if the company goes bankrupt and cannot fulfill its pension obligations. This can also happen with governments, such as in the case of retired judges in California being subject to holds on their pensions, as the state sorts out its finances.

Criticized by some as paternalistic and by others as overly rich, this pension approach is likely to be less available in the future, so it may be worth signing up if and while you can.

2. Defined contribution: “modern times”

Defined contribution plans do not offer a specific income amount. Instead, you and your employer both contribute to the pension plan every year, and the amount you receive in retirement is based on whatever you have earned on the total amount contributed. In this case, the risk and reward are yours; clever investing can thus lead to improved retirement benefits. You do typically get a choice in terms of how the funds are invested, but investment selection may be limited to funds that are managed by the pension provider.

Most companies today are gravitating toward this type of pension plan. Even if the company goes bankrupt, your savings are secure because they have been accounted for all along, rather than being accrued as a future liability.

If you change jobs frequently, this plan can typically be moved to a locked-in retirement account. As with the defined benefit plan, the employer contributions only vest after a stated period of time, usually two years.

Golden Rule: Take the Free Money

If you make an average salary over your working life (from age 25 to age 65) of $88,000 and refuse to participate in a group savings plan (where your employer matches up to 3 per cent of your salary), you would be giving up roughly $1,016,068. Yes, that's the power of free money, combined with compound interest. Don't pass it up.

Stock Options: Hot or Not?

Often, when a company is trying to keep a lid on the salaries it pays out, it will offer current and potential employees stock options as part of an overall compensation structure. This approach can also act as an incentive for employees to feel a sense of ownership in their company.

A stock option gives you the right to purchase a corporation's stock at a set price, for a certain period of time, subject to certain terms and conditions, regardless of how that stock performs.

For example, if you exercise your stock options and purchase your company's stock for $50 per share, while the market price of the stock is trading for $75, congratulations, your options are “in the money” and you've just built some serious wealth! Wasn't that easy?

However, stock options can also turn out to be not exactly worth the paper they are printed on, in the event that the exercise, or strike, price (say, $100) is in excess of what the shares are actually worth at the time the options must be exercised (say, $60). In this case, the options are considered to be “out of the money,” with limited incentive for the employee to pay the price to purchase the shares (unless there's some big secret you're not telling us, and that's called insider trading . . . a big no-no!). In this type of situation, stock-option plans, with all their paperwork and time and effort to administer, may be of little value (pun intended).

Stock options were once very much in vogue, especially among start-up technology companies that were short on cash to hire employees and long on expected growth potential. Many employees became dot-com millionaires in this way. Yet, when the technology sector crashed, many start-ups (and we mean many) failed and the employee stock options became worthless.

So, before you leap for the offer of options and start researching real estate on the French Riviera, consider the following:

• the likelihood that the stock options will ever increase in value to generate significant gains;
• how much you will have to pay for the stock options within a specified period of time, in order to participate in earnings from value appreciation;
• possible tax implications that may occur, upon receipt of the stock options, as well as when they are exercised (i.e., paid for) and sold;
• what is the liquidity of the underlying company if you exercise your options? Can these shares be sold or monetized? While this may not be an issue if purchasing shares in a publicly traded company, in many cases if you are working for a private company, you might be in a situation where you are required to hold these shares until the company itself monetizes (i.e., sells); and
• what, if any, special conditions apply to these shares when you purchase them? Read the paperwork carefully; many private-company plans have very strict conditions to hold their shares and you should be aware of these conditions (sometimes known as the “golden handcuffs”).

As these factors demonstrate, being offered stock options is a good reason to seek out professional advice. The requirements and implications, particularly from tax and legal perspectives, can be complex.

How to Ask for More: a Checklist

Salary isn't everything, though for most of us, it's high on the list. You might love your job, yet you really need more pay or benefits to feel appreciated, to feel confident that your level of compensation is sufficient to meet your needs. Sometimes the greatest job is one that you just cannot afford to keep.

While you may think that if your company could pay you more they would, did you ever think it all comes back to you; as in, you making the move and making the ask, rather than the other way around?

Yes, if your company values you and understands that you are contemplating leaving for greener pastures, a good employer might just surprise you. After all, hiring and training new staff members is not only expensive for employers, it is also very time-consuming. So, it might just be worth their while to keep star employees happy and promote them within the company.

Some creative solutions that you might want to discuss with your employer include:

• providing you with a bonus on a quarterly basis, rather than annually (opportunities for you to invest funds and allow compound interest to work its magic);
• giving you days off or flextime in lieu of overtime;
• restructuring your hours;
• phasing in a salary increase;
• planning for a promotion;
• finding you extra assignments for additional income (and to learn new skills); or
• boosting your benefits plan.

The important thing is to communicate honestly and directly and consider the alternatives thoughtfully. When it comes time to negotiate, make sure you've got these bases covered:

• Speak with your boss and not with other colleagues

  She or he will appreciate your professionalism for approaching the situation directly, rather than hearing about your concerns through the office grapevine. Plus, you're more likely to work out a customized arrangement if you keep it confidential.

• Come prepared with a list of your achievements

  Highlight those examples where you've gone beyond the expectations of your role. (In other words, it's not enough to say that you're broke and need new tires for your car.) You might think your boss is aware of all your hard work, but it always helps to be reminded. Just like you, a boss can be consumed with his or her own job, as well as managing other employees, so don't assume that your issues and accomplishments are top of mind.

• Know your priorities

  There are many factors that your boss can tinker with to adjust your role: money, time, title, recognition, administrative support, an office with a door. What are the things that motivate you and what can you live without? Think about this carefully and in a pragmatic manner. Doing so can help your boss to say yes.

• Have a clear proposal

  If it's a raise, have a figure in mind. If it's more benefits, be specific. If you need flextime, suggest how you will structure your day to ensure no work falls by the wayside. If it's a professional development course, demonstrate how your learning will contribute to your performance results. This approach helps you to think like a boss, utilizing a solutions-oriented approach that is a big facet of management.

• Gather some leverage

  Prove that what you're asking for is not unreasonable by showing what others at your level or in your field are earning. Many industry associations offer salary-survey results, and employment websites compare similar jobs and what they pay. (This may also have the ancillary benefit of helping you discover some alternative options. So, don't shoot from the hip, be in the know!)

• Make a deal

  If your boss isn't ready to grant your request immediately, ask for quantifiable goals; find out what you need to demonstrate or accomplish in order to get a promotion or salary increase. Establish a realistic timeline for getting these tasks done and then set a date to reconvene once the goals are met. Then ensure the goals are met; sooner, rather than later, if you can.

• Put it in writing

  After your meeting, send a thank-you e-mail summarizing your discussion and the terms to which you both agreed. And then get busy.

Hindsight

Preparing yourself for change can lead to solutions you never imagined. I was involved in talks to change my job at one of the major banks. It was to be a lateral move, just reporting to a different department. My role would be new to this department and I started to get the feeling they might make me a low-ball offer (“budget cutbacks, best that we can do, yada yada”), so I called some friends who worked at competitor banks, to find out what their companies were paying for similar roles. I had no intention of leaving the company where I worked; I just wanted some facts in my back pocket for making a case to preserve my current salary.

In the course of making queries, one of the competitors asked if I would meet with them for an interview. Out of curiosity, I went for the interview and was surprised to be offered a great opportunity! I ended up leaving my original employer and accepted a job with the competitor, where I was given a much bigger and more exciting role—and a higher salary.

Investing in You: Tips for Improving Your Work Competency

It has often been said that any job worth doing is worth doing well. A way to put this philosophy into practice is to view every project you complete, or every job you hold, as an opportunity to enhance your capability—and your resumé. You know the drill: complete the task, repeat the task, master the task, own the task! Best of all, once you master a task or expand your knowledge, it's yours; no one can take that from you.

With that said, here are a few ways to make the most of each and every career opportunity, big or small. (What a great way to invest in yourself!):

• Take a performance improvement perspective

  Bringing an entrepreneurial spirit to any role can make you a better employee and help you enjoy your work more. If you are confident that a few changes would add to your or your team's productivity, pitch them to your boss and team members. Be sure to approach this from a positive perspective: changes that do not cost the company money and that can potentially improve financial performance are usually welcomed and appreciated.

• Manage yourself

  You are the master of your own career, so it is up to you to take steps to advance it and get the qualifications and experience that you need to move forward. Your employer does not owe this to you.

• Seek out greatness

Look for projects where you can work with smart, successful, positive people. Too many people wait for opportunities to come knocking on their door (and then they're too busy texting to notice). Get out there and ask for your chance to learn from the people you admire; their greatness is often contagious, so soak it up, sunshine!

Make these practices your M.O., to help you get on track to serious career advancement. Way too many people become stagnant in a position, feeling they have little control over their own progress. Let them. Successful people put their best foot forward on each and every task, take a positive attitude, and are always on the lookout for opportunities to develop their abilities further.

To prove our point, take a good look around your workplace and see how many of your co-workers are actually taking this success-oriented approach. Once you identify those who do the minimum (a.k.a., the lazy, the unmotivated, and the grumblers), you might just find yourself standing alone, or at least in a pretty small group. That's opportunity. So step up and take action. You might just be surprised by the results.

Hindsight

I've always been a self-motivated person, and had big, long-term goals even at the beginning of my career. From time to time, I would come across co-workers and peers who would react very negatively to my personal career goals: “You're too young.” “You don't have enough experience.” “You shouldn't be focusing on long-term goals.” “You won't get there.” And so on.

Looking back, I realized that they were telling me more about their own experiences than what my own career could be. What a dreary existence to be so negative; no wonder they were so limited in their career progression! I don't know too many successful people who have a negative view of the world (can't think of any, actually); that's enough of a reason to take a positive attitude, believe in your own abilities, and get busy! It worked for me.

Being Let Go

There are many reasons why you might be cut loose from a job, and rest assured, the reasons may be more related to the company's financial position or corporate reorganization than your performance. However, if you were not performing up to par and really are to blame, it is critical to take honest stock of your role in the situation so that it will not be repeated. Really, you can't afford not to.

Regardless of the reason, it hurts. Even if you were expecting to lose your job, due to a department closure, for example, you are still going to experience some feelings of loss. This is a period of adjustment where you need support from others. Many employers offer career counselling as part of employees' severance packages. Even if it is difficult to do so, do not pass up this offer. Qualified counsellors can help you deal with the hurt, confusion, and anger that you may be experiencing, as well as help you move forward with your job search. So, be first in line and do what you can to approach this valuable resource with a positive attitude.

Don't be surprised if former employees do not contact you; they often don't know what to say and may feel survivor's guilt. Seek out the work friendships you want to maintain; apart from that, be civil, sincere, and professional; former colleagues can be your future references.

Here are some items to consider if you happen to find yourself on the wrong side of the employment equation:

• Understand options for pension plans and retirement accounts

  You may have the choice to leave your pension with the company or take a commuted value in a locked-in retirement account. The company should be able to provide a calculation for you, in terms of the value of either option.

• Determine the status of professional and membership dues

  During the course of your employment, the company may have paid professional and/or membership dues on your behalf. Inquire about the requirements to transfer these items to yourself personally, the remaining coverage periods, and whether or not you will be subject to reimbursing your employer for any of the amounts that have already been paid.

• Determine your benefits-plan status

  Find out what benefits, such as medical or dental, are preserved for the interim period before you find a new job. Ask your employer how long your benefits coverage will continue.

  A good approach is to collect the information and not make any immediate decisions. Being let go can be a traumatic experience, and chances are you will not be thinking clearly in the early days of being unemployed. Gather the information and take the time to consider it fully; do your due diligence, and ask for advice. You will be glad you did.

Severance Pay to Take Away the Sting

Severance pay, at a minimum, is generally government regulated in your jurisdiction, may be specified in your employment contract, or may be part of the company's policies. Severance pay can be based on years of service and may be subject to negotiation between the company and the departing employee. Given the circumstance, it is a good idea to get professional advice to better understand your position and options.

In terms of treatment of the cash, you may have the option to shelter this money in a retirement account, or to split the amount between this year and the next, in order to minimize the tax impact. You may also have the choice between receiving a lump-sum amount or an ongoing salary. If this is the case, consider your tax bracket and whether or not you will receive payments over more than one tax year.

The number-one mistake that people make with severance pay is to treat it like income. They deposit it into their chequing account and wonder what happened when it's all gone! If you receive severance pay, then you need a severance plan. This involves the following:

• eliminating all non-essential expenses;
• parking your severance pay away from your debit card, where it will be all too easily accessed on a daily, on-the-fly basis. That said, do put it in a savings account where you can access some or all of the funds, if necessary;
• lining up a flexible debt option, such as a low-interest line of credit;
• going on a “cash diet” for any emotional or controllable expenses, such as groceries, hair appointments, uncontrollable splurges at designer discount stores, and so on;
• mapping out how long your money will last in the event that you don't find immediate work, based on your reduced level of expenses; and
• making sure you understand the tax implications of severance pay, especially in terms of the net cash amount that you will receive. For example, it would be disappointing to make a plan based on $20,000 of net severance pay, only to find out that you are really working with a net cash amount of $10,000.

Getting Back on that Horse

Once you've downed the Cab-Merlot with your pals and gone home to trash-talk your former employers until your dog is tired of hearing about it, it's time to think positively about your options.

Here's the good news: you are free! Let your imagination run wild with what you could accomplish and what your next career steps could be. Try to remember all those dreams about what you would rather have been doing while stuck in airless meeting rooms and confining cubicles. Take stock of your skills and brainstorm about the possibilities of applying those skills . . . elsewhere.

Even forced change can be a gift in disguise. For many people, being released from a job gives them a whole new outlook that ends up changing their life for the better. You may decide to take courses, start your own business, or move your career in a totally different direction. Take the opportunity to focus on becoming your best self, and what you need to do to get there.

Be open and tell people that you are facing a career change and what your interests are. You never know who is connected to whom, or what an idle conversation at the coffee bar could lead to (in fact, many jobs are never posted; they are just networked informally until a candidate is found). Networking groups, such as LinkedIn and other social groups, can help you connect to new contacts and get support from others. You might even be surprised to make valuable contacts in the most unlikely of places, such as the gym, the hair salon, or the grocery store lineup. Many a deal has been made whilst chatting about bulk food finds or sitting under a heat lamp (with foil-wrapped hair, every woman is an equal).

Think about yourself as a product for which you need to design a marketing plan—a compelling and desirable brand, baby.

A good approach is to understand all of your key skills and accomplishments; in this way, your competencies can be targeted to potential employment situations. For example, you might have spent your entire career thus far in the transportation industry, but once you clearly define your key competencies, you will notice that these skills can be applied to many industries. (Could that management career in the travel industry really be possible?) As part of this process, determine what, if any, training or professional development is needed to make a move. Do your research and sign up. It's a great way to make productive use of your time, get the training you need, and make contacts in the industry that interests you.

Updating your resumé is an important part of your personal marketing plan, so do it right. A modern approach is the skills-based resumé (rather than the more dated chronological job listing approach, though that still has its proponents).

There are an abundance of resources available to guide you through this process, and given that your resumé is often your first point of contact with a potential employer, it is worth the effort to prepare a strong one. Create a first draft and get some feedback from a human-resources professional or from friends who routinely hire staff. You might be surprised how much feedback they will have, because, yes, there are lots of poor resumés out there. Don't let yours be one of them!

From a financial perspective, manage your spending carefully and continue to follow a debt-repayment plan. Keep any lines of credit open and available in case an opportunity arises. (Say, Carla Bruni just called. She's looking for a cultural attaché and would like to interview you tomorrow afternoon in front of the Louvre in Paris? Can you hop a flight? Mais oui!) Okay, now we're dreaming, but the principle's the same: by keeping yourself out of financial stress, you will be in the best position to take your time and make the right choice from the opportunities that come your way (a job in Paris hopefully being one of them).

Most importantly, remember that just because your job situation has changed, you have not changed. You are a compelling person with the same strengths, talents, smarts, and endearing sense of humour that you've always had. Who wouldn't love and find value in that?

Life Lesson: Protect Your Risk Profile, Before You Risk Walking Away

Ideally, before you make a career change, make sure your debt is as efficient as possible. Every time you experience a change in employer, it will take a while before you are deemed to be a good lending risk again. If your long-term plan is to start a business or be self-employed, it could take years to reclaim your risk “worthiness.” Ensuring that you are financially agile before making a break can give you far more options and more freedom to pursue greater career and life opportunities!

Note

1. Bureau of Labor Statistics, “Employee Tenure Summary,” United States Department of Labor, 14 September 2010, http://www.bls.gov/news.release/tenure.nr0.htm