Changing Jobs Every Two Years
In today's job market, it's becoming increasingly important for employees to take control of their careers and maximize their profits. One way to do this is by changing jobs every two years. According to research, staying employed at the same company for over two years on average will make an individual earn less over their lifetime by about 50% or more. This is a conservative estimate assuming that your career will last only ten years, but the longer you work, the greater the difference in earnings over your lifetime.
In 2014, the average raise an employee can expect is only 3%. Even the most underperforming employee can expect a 1.3% raise, while the best performers can hope for a 4.5% raise. However, the inflation rate is currently 2.1%, meaning that your raise is actually less than 1%. This can be sobering news, and it's unlikely that management will change their decision.
Furthermore, loyal employees are often punished for their dedication, while those who jump ship are rewarded. In recessions, businesses may freeze their payroll and decrease salaries of newly hired employees based on "market trends." These reactions to the recession were meant to be "temporary" but have become the "norm" in the marketplace. We have become used to hearing about "3% raises" and have accepted it as the new "norm."
However, changing jobs every two years has its advantages. The average raise an employee receives for leaving is between a 10% to 20% increase in salary. Companies competing for talent are often not afraid to pay more when hiring if it means they can hire the best talent. The same thing applies for titles. Some companies have a limit to how many promotions they allow each year. Once you are entrenched in a company, it may become more difficult to be promoted as you may be waiting in line behind others who should have been promoted a year ago but were not due to the limit. However, if you apply to another company, your skills may match the higher title, and that company will hire you with the new title.
Moreover, the world is desperate for skilled labor, and companies around the globe are starving for talent. This means that employees are positioned better than ever to leverage their abilities for increased pay. According to Bethany Devine, a Senior Hiring Manager in Silicon Valley, CA, who has worked with Intuit and other Fortune 500 companies, people who had switched companies usually commanded a higher salary. 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.
People are worried that "changing jobs too often" will reflect negatively on employee resumes. However, changing jobs every two years is not necessarily a bad thing. It shows that you are adaptable, flexible, and able to learn quickly. Employers will see you as a risk-taker, and someone who is willing to take on new challenges. It also demonstrates that you are focused on your career and are always looking for new opportunities.
In conclusion, employees need to put their careers ahead of company loyalty. Changing jobs every two years has its advantages and can make a huge difference in your income and career path. The world is desperate for skilled labor, and companies are competing for talent. Employees are positioned better than ever to leverage their abilities for increased pay. So, don't be afraid to take risks, change jobs, and focus on your career growth.
In 2014, the average raise an employee can expect is only 3%. Even the most underperforming employee can expect a 1.3% raise, while the best performers can hope for a 4.5% raise. However, the inflation rate is currently 2.1%, meaning that your raise is actually less than 1%. This can be sobering news, and it's unlikely that management will change their decision.
Furthermore, loyal employees are often punished for their dedication, while those who jump ship are rewarded. In recessions, businesses may freeze their payroll and decrease salaries of newly hired employees based on "market trends." These reactions to the recession were meant to be "temporary" but have become the "norm" in the marketplace. We have become used to hearing about "3% raises" and have accepted it as the new "norm."
However, changing jobs every two years has its advantages. The average raise an employee receives for leaving is between a 10% to 20% increase in salary. Companies competing for talent are often not afraid to pay more when hiring if it means they can hire the best talent. The same thing applies for titles. Some companies have a limit to how many promotions they allow each year. Once you are entrenched in a company, it may become more difficult to be promoted as you may be waiting in line behind others who should have been promoted a year ago but were not due to the limit. However, if you apply to another company, your skills may match the higher title, and that company will hire you with the new title.
Moreover, the world is desperate for skilled labor, and companies around the globe are starving for talent. This means that employees are positioned better than ever to leverage their abilities for increased pay. According to Bethany Devine, a Senior Hiring Manager in Silicon Valley, CA, who has worked with Intuit and other Fortune 500 companies, people who had switched companies usually commanded a higher salary. 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.
People are worried that "changing jobs too often" will reflect negatively on employee resumes. However, changing jobs every two years is not necessarily a bad thing. It shows that you are adaptable, flexible, and able to learn quickly. Employers will see you as a risk-taker, and someone who is willing to take on new challenges. It also demonstrates that you are focused on your career and are always looking for new opportunities.
In conclusion, employees need to put their careers ahead of company loyalty. Changing jobs every two years has its advantages and can make a huge difference in your income and career path. The world is desperate for skilled labor, and companies are competing for talent. Employees are positioned better than ever to leverage their abilities for increased pay. So, don't be afraid to take risks, change jobs, and focus on your career growth.
