The cost of living is on the rise. We’ve all seen the stories about inflation, and we’ve seen it reflected in the cost of goods. Real estate, gas, groceries, and many other things are more expensive than they were only a couple of years ago. So, it makes sense that you may be looking for a pay raise to help keep up.
But there is one issue. Asking your current employer for a raise may not always be feasible. Most companies have processes in place for how they provide raises to their staff. For some, it’s based on the number of hours worked or years of service. For other companies, it’s merit-based and tied to performance reviews.
Granted, there are companies who do offer raises under unique circumstances, such as outstanding performance by their employees, or in recent times, to help support their employees during COVID and keep up with inflation.
But it is traditionally believed that if you want to receive a significant jump in compensation, you are more likely to receive it if you switch jobs.
According to recent findings from Pew Research Center in the U.S., switching jobs has become the best course of action to get a pay raise.
They found that during the second year of the pandemic (2021), half of the people who switched jobs saw an average pay increase of 9.7%. While the typical worker who chose to stay in the same job experienced a loss of 1.7% when you factor in inflation.
“From April 2021 to March 2022, a period in which quit rates reached post-pandemic highs, the majority of workers switching jobs (60%) saw an increase in their real earnings over the same month the previous year. This happened despite a surge in the rate of inflation that has eroded real earnings for many others,” says Rakesh Kochhar, Kim Parker, and Ruth Igielnik from Pew.
“Among workers who remained with the same employer, fewer than half (47%) experienced an increase in real earnings,” they add.
Based on this data, it makes sense why more people chose to make career moves post-pandemic and continue to do so presently. Many did it for the extra money. It literally pays to switch jobs.
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Paige Allen is a Recruitment Consultant on the Marketing Services team, specializing in Public Relations, Marketing Communications and Pharma. Prior to joining IQ PARTNERS, Paige worked in customer service and IT Procurement, where she developed a passion for people and aptitude for research and analytics.