When do you know it is time to change jobs? This is one of the most asked questions I get from clients. I share the concept of “Expected Value” to help them evaluate their current job against other opportunities. The expected value of your job is the sum of its present value, future value, plus or minus intangibles.
Below are categories and weights for calculating the expected value of your current job. You can modify as need to better reflect your values and priorities.
Present Value (50%)
The largest component of expected value are the financial attributes of your job. Categories and suggested weighting include:
- Compensation (20%)
Current base salary, target bonus, and equity percentage.
- Benefits (20%)
Health (medical, dental, vision, mental health); retirement and investment (pension, 401K); and educational benefits.
- Access to Advice / Discounts (10%)
Health club discounts, and access to legal, financial, well-being advice.
Future Value (30%)
The next component of expected value is the projected future value of your job. To calculate that value, ask the question, “Is it likely to occur in the next 12 months?” Your answer choices are Yes (it has been discussed or it has happened for the past three years), No (it has not happened historically or has not been discussed), or Maybe (there has been talk or rumors, but I am not sure). Categories and suggested weighting include:
- Micro Value (15%) – Over the next 12 months, will I:
Receive an increase in base pay?
Receive a bonus payout and/or equity grant?
Receive a promotion?
Become a manager?
- Macro Value (15%) – What is the trend over the past three years:
People – my company has more employees than three years ago.
Economic – revenues and profits have increased over the past three years.
Societal Reputation – the reputation of my organization has increased over the past three years.
Technology – my industry and company has adopted new technology and innovation.
Intangible Value (20%)
The final component of expected value are the intangibles that add value to a role or detract from it. This is the most personalized section of the equation. Based on my years of advising colleagues, I highlight the four areas most often mentioned:
- Work Model (5%) – Are you happy with your situation?
In-Office, 100% Remote, or Hybrid.
- Boss Relationship (5%) – How would you describe your current boss?
Sponsor, Mentor, Blocker, or Non-Factor.
- Cultural Fit (5%) – Is there a strong fit between you and your organization?
There is a mission match with my long-term career aspirations.
My values and the organization’s values are aligned.
The working norms of my company match my preferred work style.
- Location (5%) – I work where I want.
I work in a location that meets my long-term needs.
Where I live is a good fit for my family.
My commute is reasonable.
Job Comparison Sheet
Click on the link to access an expected value worksheet. Link
If you are looking for help determining if you should remain in an existing role, or move on to another role, calculate the expected value of your current job. Then compare to the expected value of the new opportunity. The expected value of a job is the sum of its present value, future value, plus or minus intangibles.