Does Job Jumping Pay Off?

DustyUncategorizedLeave a Comment

We see the following all the time in professional sports. When a player goes free agent and moves to  another team, they usually don’t make less money, they make more. The fact is, this tends to be true in the business world as well.

Research indicates that people who are loyal and stick with an organization are going to make 50% less over the course of their lifetime than those who are willing to jump ship every two years or so (Forbes, 2014).

When switching jobs, capable employees are seen as valuable and in-demand. Job jumping used to earn a reputation of unreliability but now can position the shrewd individual as a hot commodity. Taking a new job typically comes with a minimum of a 10% (sometimes up to 20%) raise. Conversely, staying with a current organization usually only yields 2.5-4% raises.

Job hopping puts the choice in the hands of the employee instead of the employer. The rules have changed dramatically, and if employers want to keep valuable workers, they’ve got to find new ways to incentivize and motivate.

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