Job Hopping: How to make a smooth transition

Most corporate employers credit salaries to the employees’ bank account. To facilitate such transfers, employees are asked to open ‘zero balance’ saving bank account in the same bank which the employer uses. The trouble is when you quit, the ‘zero balance’ nature of the account ends. In most cases, you need to maintain a quarterly minimum balance, which may amount up to Rs 10,000. To avoid such problems, keep your salary account free of any transactions other than credit of salary. Maintain a bank account other than salary account which can be used to make all the other payments. This works best for those who frequently change jobs.

I know many of my colleagues who have availed of loan facilities provided by their employer. Needless to say, these need to be paid off before the employer gives a relieving letter. The best way out is to get the employer loan refinanced by a bank before changing jobs. This is because getting a loan in a new job is usually difficult as banks prefer to lend to those with at least one year of employment history.

If there is a break between jobs, there is also a break in the group health insurance cover provided by your employers. Hence don’t rely on employer’s insurance and buy some insurance on your own, if you have not done that till date. You need insurance even when you are unemployed.