Why Getting A New Job Could Be The SMARTEST Financial Decision You’ll Ever Make

Did you know that you can expect a salary increase of between 10% to 20%, on average, simply by getting a new job!?

Yep,  you heard that right. Many employees don’t realize it, but one of the fastest and most reliable methods for career advancement and corresponding salary increases, is quite simply to get a new job! In a fascinating new article  for Forbes online Cameron Keng lays out all of the details and stats that backup this surprising conclusion.

In his article Cameron begins by boldly declaring that an employee who remains in the same job for even as little as two years time will end up losing a whopping 50% in salary over a lifetime. This is shocking news, especially since so many of us have been conditioned to value company loyalty above all else. The traditional idea is that if you stick with one company your whole career you will inevitably rise through the ranks to whatever pinnacle your own potential allows -and be paid accordingly.  However, Cameron quickly and thoroughly challenges these assumptions with an arsenal of hard facts and real world examples. As it It turns out, it seems that there is much to be said for moving on to a new job, rather than sticking around in the old one.

For example, the average yearly raise at a company is typically 3% (and, after adjusting for cost of living increases, more like 1%) however, the average wage increase one can expect after a job change is 10 -20%. Part of the problem it seems has to do with the recent Recession and how companies dealt with it. As Cameron puts it,

Recessions allow businesses to freeze their payroll and decrease salaries of the newly hired based on market trends. These reactions to the recession are understandable, but the problem is that these reactions were meant to be “temporary.” Instead they have become the “norm” in the marketplace.

As a consequence annual raises which used to be standard at 5%, are now at best 3% -if you get one at all, of course.  So basically, if you can look to annual increases of 1 to 3% by staying at your current job, versus changing jobs say every 2 to 3 years and receiving 10 -20% salary increases each time, the advantages do begin to appear obvious.

Towards the end of the article Bethany Devine, a Senior Silicon Valley Hiring Manager sums up the argument best when she says,

The problem with staying at a company forever is you start with a base salary and usually annual raises are based on a percentage of your current salary. There is often a limit to how high your manager can bump you up since it’s based on a percentage of your current salary. However, if you move to another company, you start fresh and can usually command a higher base salary to hire you. Companies competing for talent are often not afraid to pay more when hiring if it means they can hire the best talent.  

So, bottom line, if you feel like you are underpaid in your current job, well quite possibly you are. Furthermore, when seeking solutions to this situation don’t be afraid to take charge of your own salary -even if that means looking outside of your current employer to find the best and most rewarding job opportunities.  Remember the jobs really are out there. In fact, JobInventory has over six million jobs in it’s data base for you to choose from.  Jobs from all over the United States, and in every conceivable field. Here are just a few examples, Sales Manager, Engineer, Nurse Practitioner, Developer, and of course, there are many many more. This really is why we are confident when we say “Your Next Job Is Here”!

Also, remember to check out the full Cameron Keng Forbes article. It really is a fascinating, and it just may be the inspiration you’re looking for to finally take the bold steps necessary to get the new job, and salary, you really deserve!

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