People who are right out of school need a different type of orientation than someone who’s walking in the door with 10 years’ experience elsewhere. Specifically, the rookies need help with three major employment issues.
Health insurance
Someone who’s never been sick – or never had to pay the bills for being sick – probably has little understanding of what’s involved with health insurance, much less the definition of “deductible” or “co-pay.”
Take a little extra time to explain your organization’s plan, if you have one, and health insurance in general. No, it’s not your responsibility to make sure they don’t make a mistake. Yes, it’ll make you a better person.
Taxes
For most new workers, taxes represent something their parents complain about or some mysterious disappearance of part of their paycheck from last year’s summertime job. Sit with them and go over the responsibilities and realities of filling out IRS Form W-4 and deductions for Social Security, Medicare and state and local taxes.
And if you do a good job of explaining, they’ll be complaining like their parents in no time at all.
Retirement
If you come across a 23-year-old who’s given retirement a lot of thought, you’re dealing with either (a) the smartest person in the world or (b) the scariest. Most people who are taking on a first job need a primer on 401(k)s and other types of retirement plans – how they work, who pays for them, and the expected payoff.
What seems to work best is the use of projections. Show newbies what can happen with a regular contribution to a retirement plan and what happens when they don’t contribute. It’s true that most of the rookies can’t imagine the day they turn 60 and their financial needs on that day. All you can do is make them aware.
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