Is staying loyal to one company hurting you on pay day? With a rising cost of living it’s important to understand how to maximise your earning potential and perhaps consider a new job if this ultimately leads to more money in your hands.
In this article we will explore job hopping advantages and disadvantages, so you can be confident you are making the right decision to leave or to stay.
What should I be earning for my job title?
As a starting point, the average full-time salary is for your job title in Australia. If you are due a pay rise, the market rate salary will be important to know for your negotiations.
It is also important to understand the minimum wages for your situation, to ensure you are being paid fairly for your work.
Why changing jobs frequently can lead to higher pay increases throughout your career
If you’re wondering why switching jobs more often can result in earning more money over the course of your career, here are some clear explanations:
1. Overcoming salary increment limitations
Long-term employees often earn less due to limitations on salary increments within organisations. Many companies have strict policies and budget constraints when it comes to annual raises. This means that even if you consistently perform well and make significant contributions to your organisation, your salary may only increase gradually over the years. On the contrary, individuals who strategically change companies have the opportunity to negotiate a higher starting salary without being restricted by incremental raises. This initial boost in compensation sets the stage for higher future earnings.
2. Thriving in a competitive job market
The job market has become increasingly competitive, with employers competing for top talent. When professionals switch companies, they bring with them a wealth of experience, skills, and fresh perspectives. Consequently, they become attractive candidates to potential employers who are willing to offer more competitive salary packages to secure their services. By leveraging the demand for their expertise, job hoppers can negotiate higher salaries, signing bonuses, and other perks that contribute to their overall earnings.
3. Expanding skill set and diversification
Staying with the same company for an extended period can sometimes limit your exposure to new challenges and growth opportunities. On the other hand, changing companies exposes you to different work environments, technologies, and industries. Each new role presents a unique set of responsibilities and demands, allowing individuals to broaden their skill sets and gain valuable experience. This diverse skill set makes them more marketable and sought after by employers who are willing to pay a premium for their expertise. Consequently, job hoppers can command higher salaries based on their expanded skill set.
4. Accelerated career progression
Changing companies often comes with the added benefit of accelerated career progression. New environments offer fresh opportunities to take on more significant responsibilities, lead teams, and demonstrate leadership potential. With each job switch, professionals can climb the career ladder at a faster pace, attaining higher-level positions and corresponding salaries. This upward trajectory provides a direct path to increased earnings that may not be as readily available to those who remain in one organisation for an extended period.
5. Access to new networks
Building a strong professional network is crucial for career growth and future opportunities. By moving companies, individuals expose themselves to a wider network of industry professionals, mentors, and potential collaborators. These expanded networks can open doors to lucrative job offers, partnerships, and even entrepreneurial ventures. The connections made through job hopping can lead to increased visibility and access to higher-paying positions that may not be available to those who limit their professional interactions to a single organisation.
6. Market value and industry trends
Industries and job markets evolve rapidly, with certain skills and expertise gaining more value over time. Job hoppers have the advantage of staying attuned to industry trends and adapting their skills accordingly. They can position themselves as experts in emerging fields, which are often associated with higher compensation. Conversely, professionals who remain with one company for an extended period may find their skills becoming obsolete or less relevant in a rapidly changing landscape, potentially impacting their earning potential.
In summary, changing jobs more frequently throughout your career can lead to higher pay increases due to overcoming salary increment limitations, thriving in a competitive job market, expanding your skill set and diversifying your experience, experiencing accelerated career progression, accessing new networks, and staying relevant in terms of market value and industry trends.
Earnings Comparison:
By comparing the career trajectories of Alex, the job hopper, and Sarah, the internal promote, it becomes evident that Alex’s strategic moves across different companies have led to significantly higher earnings over time. While Sarah has experienced internal promotions within Company X, her salary increases have been relatively modest compared to Alex’s salary jumps resulting from changing jobs.
At the end of their 10-year careers, Alex’s salary as the Director of Engineering at Company E amounts to $134,550 per year, while Sarah, as a Senior Engineering Manager at Company X, earns $100,772 annually. The difference in earnings highlights the financial advantage that job hopping can bring, as Alex’s willingness to explore new opportunities has allowed them to negotiate higher salaries and secure more lucrative positions.
Conclusion
Moving from business to business can actually have a lot of benefits for employees pay overtime. It is important to educate yourself on minimum wage and average salary for your job title. Keep checking for the latest job opportunities on Jora to see what salaries are being offered for your role and expertise – it might be worth the move!