Should you wait for a better offer, or start working ASAP

6 minutes read

This is probably the most common question, when it comes to picking a new job. There’s a lot of anxiety as you don’t want to commit to the lesser choice; but financial realities may demand that you act quick. As such, this is one of the key decisions that manage to be both important and urgent at the same time. Here’s a good way to decide on a course of action:

Should you take what’s available, or wait for something better?

The answer depends on a range of factors. These include the following:

● How sizeable is your savings fund?

● Do you have ongoing expenses and obligations?

● What are the considerations of leaving the new job?

● Will waiting leave a long gap in your resume?

● How realistic is the dream job you’re waiting for?

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1. How sizeable is your savings fund?

In an ideal scenario, you should have a savings fund of at least six months of your expenses (if you haven’t got this yet, we suggest setting aside savings to build such a fund).

Your savings fund determines how long you can afford to wait. This means, for example, you have more leeway to decline a job offer that arrives in the very first week, as there’s still time to hold out for something better. But once you near the fourth or fifth month, you’ll know it’s time to stop being so picky.

For fresh graduates in Singapore, this is a good reason to start building your savings aggressively, in the final year of school (or if you’re serving out your NS, consider hoarding your allowance toward the final year).

Those who have a strong support network, such as a family who can support them indefinitely, should certainly consider waiting a bit longer for a better job offer. This depends, of course, on your willingness to have your family support you while you look for better.

If your parents are supporting you, you may want to have a talk with them, and come to a conclusion on how long you can wait before you take the next available job.

2. Do you have ongoing expenses and obligations?

If you have vital expenses that you cannot meet – such as having to pay the mortgage on your flat – then the answer is almost always to take the first job that covers it.

In such an urgent situation, you don’t have much of a choice. Never rely on high-interest credit like personal loans or credit cards, just because you want to wait for a slightly better paying job. If you end up in serious financial distress, this can cost you a better job anyway. Some employers are hesitant to engage employees in high-debt situations.

The same applies if you have to look after dependents, such as children or parents who can’t work. In these instances, immediate income almost always beats the potential for higher pay later. Start working now, but aim for a better job even as you work in your current one.

3. What are the considerations of leaving the new job?

Say you take the first job that’s available, and a better one comes along later. What would be the ramifications if you were to quit?

Some companies may impose non-compete clauses, which prevent you from working with rivals in the same industry for a number of years. Some companies even have clawback clauses, to pay for any training courses they’ve put you through.

For civil services, such as the military, there may be serious ramifications in trying to quit before a given length of time. So if you want a better job, you cannot just take a position with such organisations, and expect to leave on quick notice when it comes.

In general, you can be less worried if the new job lets you leave freely for a better one. But if there are tight restrictions on future employment, you may want to wait rather than sign on immediately.

4. Will waiting leave a long gap in your resume?

Even if you have the means to sustain yourself, avoid having gaps of longer than 12 months on your resume.

Many hirers consider this a red flag – they may view you as trying to get a job only now because you’re desperate; or as someone just trying to accumulate needed funds for self-employment. There are ways to assuage them, but you usually need to do something productive as an excuse (e.g., take a part-time education course, and explain you didn’t work for a year because you were upskilling).

If you’ve already been jobless for close to six months, consider just taking the next offer that comes along – if for no reason other than to avoid long resume gaps.

5. How realistic is the dream job you’re waiting for?

Before you decide to hold out for your dream job, speak to someone in the relevant industry. You need to know:

● The odds of someone with your experience and qualifications landing such a job

● Available openings, and realistic expectations of finding a vacancy

● Whether the dream job really does bring the salary and perks you imagine

If you don’t do this, you might end up holding out for a fantasy job that never comes, and losing out on several months of your income. You should only hold out if, based on the word of a trusted industry professional, you have a genuine shot at the job you want.

When in doubt, skew toward taking the first job rather than waiting

In most (not all) of the cases, it is easier to have a job right now, and then slowly work

toward a better one. Singapore is an expensive place to live, and surviving with no

income for several months is only an option for the more affluent.

(Even if you have a savings fund, you need to replace the savings you’ve spent later, which can be quite painful).

If your concern is the income ceiling or work-life balance, do consider talking to us at Exodus Capital. We help everyone from fresh graduates, to career switching veterans, to get a decisive leg-up in the lucrative finance industry.

Disclaimer:
The content, views and thoughts expressed in the post belongs solely to us and not of Manulife Financial Advisers Pte Ltd or any group of organisations. It may not be applicable to everyone or all contexts. None of the information stated here constitutes an offer to buy or sell product, financial instrument. Any expression or opinion is personal to the author and the author makes no guarantee regarding the completeness and accuracy of any information supplied.