There’s no doubt about it; the Coronavirus pandemic has launched us into a seller’s market unlike any other. But this concept goes beyond real estate; as the economy makes its post-pandemic shift we’ve also entered an ‘occupational seller’s market’.
The current housing boom has been a result of ultra-low interest rates and low inventories. The pandemic has also enabled increased flexibility within the world of work. With more work-from-home flexibility and close proximity to others in a social-distancing world, workers started moving out of their urban apartments — and into homes around the country. Coupled with more money in the pockets of families, the result is a spike in home prices, and an environment where people would willingly engage in bidding wars for housing!
High-growth companies also benefit from low interest rates, favorable fiscal policies, and remote working arrangements. As more and more companies shift to a more flexible working situation, companies are looking to ramp up their workforce again — and seem to find a “lower inventory” of key employees.
Whether you’re looking to transition to a new role or move up within your company, now is great time to trade up in your career. Here’s why.
Understanding the Current Market
The pandemic has forevermore changed the way employees and employers look at the world of work. During the past year and a half, the job market has shifted significantly. Not only have employees become used to their newfound work from home flexibility, but it’s also empowered workers to transition to different jobs or positions – especially if they feel discontent.
The shifts since the pandemic have led to one simple change: it’s now a seller’s market for talent within the job market. This persists in a lot of different arenas, too: the housing market, the financial markets – you name it! The conditions of the economy, including GDP growth, the economic restart, low interest rates, all-time peaks in the financial markets, government policies, and more.
Upgrading your job in a low supply, high demand environment has many benefits. As unemployment continues to decline, Americans are well-positioned like never before to climb the corporate ladder and pick a job that fits their needs. The pandemic caused a shift in mindset with many and also prompted near-retiree, baby boomers to finally pull the trigger, creating a void across the corporate landscape, including mid-management to executive level leadership.
Defining the “Who” of the Seller’s Market
So who’s who in the seller’s market? Let’s break it down.
- Who’s the seller? Ascending professionals.
- Where is the seller’s market? Growth-oriented companies, or companies that retain their earnings and pour hundreds of thousands of dollars into their talent, technology and infrastructure. Specifically, high tech companies and other companies focused on innovation and growth – think life sciences and cloud-based employers, for example.
Here’s the reality: company pensions have all but vanished, and the social security system is likely to look very different f in 10 years. We’re living in an America where we alone are responsible for our retirement savings. If we ever plan to reach a successful retirement, we have to plan ahead – big time. And that starts now.
As more traditional benefits vanish, so do loyalty to companies. Younger workers no longer envision working at the same company their whole careers. The world of work is shifting: there’s now more competition for top talent in the workforce. It’s not uncommon to see a big shift in companies every few years as a result, especially high-growth sectors like Technology, Health care, and more.
How Much Total Compensation Should You Be Looking For?
What is “total compensation”?
Companies will provide different incentives to sweeten the packages to attract top talent. These include a number of factors that play into the total value a company will pay you for your work. Consider the following:
- Equity-based compensation
- Insurance – group health/life, Health and Flexible spending accounts, disability, long-term care, etc.
- Work/life balance – Paid Time Off
- Work environment – like game rooms and coffee lounges
The world of work has shifted in favor of employees. Employees have more power than ever to pick up and leave – or demand better benefits. When evaluating offers from highly competitive employers, it can be tricky to value different non-cash benefits.
Sometimes it helps to have a discussion to formulate a cost-benefit analysis to better understand how important these elements can be.
In this post-pandemic reality, seller’s like you – the worker – have the power. Negotiating on salary, bonuses, and other corporate benefits like equity-based compensation (stock options, restricted stock units, and employee stock purchase programs), can be a great way to make the job work for you and your goals.
How We’re Helping Our Clients
We’re helping our clients better navigate and quantify the offer. A new job – and the financial perks that come along with it – can drastically impact your tax situation and your financial plan is likely due for an update.
We can help you do the math in order to determine the pros and cons of your new job – and help build confidence in negotiating on the details of your new offer. After all, a lot of people will undervalue their skills and might not be willing to negotiate with a potential new employer. Plus, we can help instill confidence and work on a goals-based decision making process.
Sometimes, non-cash compensation doesn’t “feel the same” to our clients. And that’s totally understandable! Student loan payments and credit card payments are a tangible and real burden, especially to those paying them – the cash flow in/out strengthens this reality. That’s why it’s so important to work with someone who understands that challenge — and can work to make the most of your benefits and investments. Collaborating on shorter-term strategies, with the long-term goals in mind, means more money in your family’s pocket to accomplish those goals.
If you do plan to leave money on the table, we can help run a cost-benefit analysis of leaving unvested equity-based compensation at your former employer.
It’s not just about the new job, though. Acknowledge the big picture: it’s important to think about time horizons, goals, and how it fits into your life plan.
At the end of the day, it’s a seller’s market – and it’s important to take advantage of the job market to get what you’re worth. The world of work is shifting: there’s now more competition for top talent in the workforce, and now is the time to take advantage of it.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.