The key to earning more money may be switching jobs
Job hop too much and you’re likely to raise some eyebrows — but
stay in one place too long, and your income may suffer.
A new analysis from financial services company Nomura confirms what you’ve probably
always suspected: Switching jobs will probably give you a bigger
pay bump than sticking with your current employer.
Employees who changed jobs earned about 1% more year-over-year
than those who stayed with the same employer. That might not make
a huge difference for one year, but it could add up to hundreds
of thousands of dollars of lost wages over the course of your
Job switchers likely experience stronger bargaining power and
greater salary increases when more opportunities are available or
they find a new higher-paid role that better matches their
talents, according to the report.
courtesy of Nomura. Data from ADP and Atlanta Fed Wage
In addition to being good for your paycheck, the ability to
change jobs is also a measure of the overall US economy.
Voluntary employee turnover has returned to prerecession levels,
after declining between 2007 and 2010, according to the Bureau of
Labor Statistics’ most recent Job Openings and Labor
Turnover (JOLT) Survey.
For employees who haven’t looked for a new job in a few years, it
could be smart to strike while the iron is hot. As of June 2017,
US employers were looking to fill an all-time high of 6.2 million jobs — more than double
the 2.4 million openings
that were available in July 2009.
Not that you can’t get a big raise from your current employer.
Switching departments, for example, could land you in
a role that pays significantly more.
Even if you stay in your current position, your employer has an
incentive to keep you around. “Every second spent recruiting,
hiring, training, and developing new employees is time taken away
from your core business,” Tony Hsieh, CEO of Zappos,
previously told Business Insider.
The importance of securing big salary gains in your 20s and 30s
can’t be overlooked. Income grows a lot when you’re younger, and
tends to level off in your 40s. According to salary data, on
average, women’s earnings peak at 38 and men’s at 48.
Might be time to send out some résumés.