Advice » Job Hunt Strategy» Career Assessment » Your ROI for Career Moves
Your ROI for Career Moves

Your ROI for Career Moves

Companies have several standard tools to calculate the value of a course of action. Return on investment, internal rate of return and payback period are all ways of quantifying the potential gains or losses of investing in a new venture, process or system.

Unfortunately, there are no tools for doing the same thing on a personal level.

How do you calculate the ROI of a career move? Does a new job have a net present value? You can certainly look at choosing one position over another as an investment, and the compensation as the return.

But does that tell the whole story? You probably need to look at the term as well. If you hold the job for three years, where will you be at the end of that time? The return may have been high, but the capital value of your investment may not have appreciated. That is, you may not be better-suited for the next job up the ladder.

Personal growth should certainly be considered as one form of return on investment in your career. There are others:

  • Career field.
  • Location.
  • Working conditions.
  • Opportunities for learning.
  • Sense of accomplishment.

Take this example: Compensation plans in new ventures often trade off current income for future capital accumulation. You're weighing the value of the total compensation package, salary plus potential gains. You can compare offers from different companies, but the comparisons are not direct: You must also make a judgment about the company's ability to deliver on its promise of potential gains. You not only have to know the company; you also have to know yourself. If the position makes you largely responsible for creating that equity, are you up to the job? It is a decision you have to make as dispassionately as possible, because your personal ROI hangs in the balance.

Compensation is pretty straightforward, while other factors fall into a more gray area. Working conditions are a prime example: What's the net present value of your leisure time? A new venture could require your attention 24 hours a day. If you assign high value to activities others might define as "leisure," whether it's writing a book or coaching your daughter's soccer team, they must be factored into your calculations.

Location is a similar issue. Where will the job take you -- and your family? Is that where you want to be? Location can have a very positive effect on personal ROI. A new company may move you to a great place where a lot is happening, a market where you will be in great demand. But it may also take you a long way from friends and family, the people and places that have defined your interests and activities.

These considerations obviously go far beyond the 9-to-5 and make calculating a personal ROI a very complex, subjective effort. But there's one further complexity: The factors involved will change over time. You will change. Your position will change. Your goals will change. Like any other investment, you cannot leave your career unmanaged. You must revisit your decisions on a regular basis. Recalculate your personal ROI every six months. It will help keep your major asset -- yourself -- out of nonperforming investments and producing the yield you expect.

Articles in This Feature:

Latest Jobs

Volt Workforce Solutions
Posted: 05/25/2015
Hillsboro, OR
Volt Workforce Solutions
Posted: 05/25/2015
Hillsboro, OR
Jobs In Sports
Posted: 05/25/2015
Hollywood, CA
Jobs In Sports
Posted: 05/25/2015
Steamboat Springs, CO
Jobs In Sports
Posted: 05/25/2015
Hollywood, CA

Want more personalized results?  Update Your Profile


Monster Communities

Teaching Community
Where teachers meet and learn.
Create and connect.
Networking for the career-minded woman.
Nursing Link
Where nurses call the shots.
More Monster Communities

Monster Partners

Scholarships, financial aid and more ways to pay for school.
Find top campus and online degree programs.
Military portal for the US Army, Navy, Air Force, Marine Corps and Coast Guard.
Financial Aid
Scholarships & financial aid.
Staffing for Government Jobs
Staffing and hiring solutions for federal government agency jobs.
More Monster Partners

Job Hunt Strategy

Six Ways to Make a Recruiter Hate You
If you want to blow your chances with recruiters -- and, by extension, with the companies they work for -- here are six perfect ways to do so.

Resumes & Cover Letters

Rev Up Your Resume to Relocate
Hoping to relocate? Get the ball rolling on landing the right job in the right location with these expert resume and cover letter tips.


100 Potential Interview Questions
Interview questions can run the gamut. You probably won't face all 100 of these, but you should still be prepared to answer at least some of them.

Salary & Benefits

10 Questions to Ask When Negotiating Salary
Most of us aren't natural negotiators, but asking these 10 questions during salary negotiations can help you get everything you deserve.

Employee Sourcing

Alt text
November Monster Employment Index Grows 13% Year-Over-Year, Tenth Consecutive Month of Positive Annual Growth.

For Seekers

Campus and Online Degrees
Advance your career and earn more with an online degree.
Free Salary Wizard
What are you worth? Find out and negotiate a better salary.
Research Careers
Get information on jobs and career paths to help guide your choices
Questions & Answers
Find answers to all your career related questions -- powered by Yahoo! Answers
Resume Distribution Service
Our distribution service puts your resume right in the hands of recruiters.
Resume Writing Services
Our experts will craft a keyword-rich resume that stands out in the crowd.
More Career Resources

For Employers

Career Ad Network
Target your job posting to more candidates on thousands of websites.
Hire Right Background Checks
Explore our background check packages to improve the quality of your hires.
Hiring Home Page
Find the best candidates for your business with Monster hiring solutions.
Job Postings
Find the right solution for your hiring needs. Starting at $99.
Power Resume Search
Monster's new search technology precisely matches people with your jobs.
Resource Center
Find staffing insights, labor trends, HR best practices and more.
Target Post
Connect with skilled, hourly and administrative candidates for only $99.

Social Media

Jobs on Twitter
Find jobs in your area and industry.
Monster Careers
Tune into our career advice and discussions tackling a wide range of topics and industries.
Monster Corporate & PR
Stay up-to-date on the latest news. Get the 'Who', 'What', 'When', and 'Why' on all things Monster related.
Monster Customer Service
Got a Monster question? We've got the answer. Whether you're a job seeker or employer, we can help you find the answers you need.
Monster for Employers
Find advice on hiring.
Follow Us
Check out our many pages and stay connected with the latest industry news, events, career advice and job openings.

Other Links

Monster Company Profiles
Explore companies and get information to guide your career decisions.
Compare Salaries
See how your pay stacks up to others in your field.
iPhone Application
Download the Monster app for iPhone and iPod touch.
Monster Job Seeker Blog
Monster Job Seeker Blog.
Monster Thinking Blog
Monster's Recruitment Trends Blog.
Jobs & Career Resources
Search Jobs:
For Employers: Post Jobs | Search Resumes | Advertise
About Monster | Work for Monster | Advertise with Us | AdChoices | Partner with Us | Investor Relations | Social Media
Terms of Use | Privacy Center | Accessibility Center | Help | Security | Contact Us | Sitemap | Mobile
©2015 Monster - All Rights Reserved U.S. Patents No. 5,832,497; 7,599,930 B1; 7,827,125 and 7,836,060 MWW - Looking for Monster Cable? - V: 2015.8.0.34-215