Changing your job is a challenging but crucial personal, professional, and financial choice. One thing that often holds people back from switching jobs is the uncertainty of what their new salary will be. But what if you could get a raise and be happy? Let’s discuss what is a typical salary increase when switching jobs.
Changing jobs is one of the most popular ways to boost your pay. However, there are a lot of unknowns when you aspire to have an increase in salary. Don’t worry, we’re here to help you understand it all!
Consider Your Company’s Culture
Everybody knows the drill: work hard, get noticed, and earn a big, fat raise next year. That’s how the salary increase process works, right? So, why isn’t it working for you?
Well, your dreamland is holding you down from reality. Time for a reality check.
You are a hard worker. Not even lunchtime can’t stop you from completing the task at hand. But when it’s time for annual review, whoosh, you only receive the customary annual salary raise. So does everyone else in the company.
Perhaps this makes you feel like you didn’t even get a raise at all. No one truly appreciates your work, or if they do you are not being adequately incentivized.
Or maybe your reality is even harsher. Some employees do not even receive a salary increase each year. The reason possibly has less to do with your work performance and more with the company’s norms.
Does this sound familiar?
If so, it might be time to move to a better organization that can pay you lucratively for your hard work.
It’s time to jump ship and hunt for a higher paying job.
Understand Corporate Pay Structure
If you think that corporate pay structure always follows current market trends, you are sadly wrong.
Not because organizations are ignorant but because external circumstances can generate transient spikes in the market. So, employers will maintain a pay structure that suits their goals rather than fluctuations in the industry.
In addition to this, companies often have general, across-the-board rules and guidelines that regulate raises. As previously mentioned, these rules don’t always align with your hopes and dreams.
For example, companies usually standardize pay structures for similar positions. There are sometimes consequences if you get a salary boost while your co-worker in the same position doesn’t. Even if you outperform your peers, you may not receive a raise until the corporate pay structure deems it is time.
Despite all this, is there a possibility to secure a higher salary job? Yes, when you act smartly.
Switching Jobs May Be Best For You
Switching companies for a new job position is the ultimate way for many professionals to increase their salary and benefits. Unless you get a promotion, most places will only change your pay based on the cost of living increase. In fact, a significant pay bump within your organization is often less likely than if you seek new job compensation elsewhere.
With your current company, you actually have less room to negotiate your salary. You’ve already signed on to your existing salary and benefits package. Your boss already knows your worth, skills, and what you make. Dealing with the same employer becomes challenging for most individuals to get a salary boost.
Giving your earnings a boost over a long period of time is typically only possible by switching jobs. Of course, there are some exceptions. But usually, you have better earning potential at a new gig instead of staying in the same company forever.
It is like a glimmer of hope for getting a better salary raise.
Factors In Getting A Raise With Your New Job
A typical salary increase when switching jobs depends on:
- Your industry
- Your overall job performance
- The job market and economy
- Market-based pay in your geographic location
- Pay structure and philosophy of an organization
Staying at the same company for a longer time is likely restraining your financial success. Your current base salary may restrict your annual increases and keep you from your maximum earning potential.
On the other hand, you’re not bound by those pay limitations when you join a new organization.
The most important thing is to prove your worth to the hiring manager. You need to show them that you’re worth the salary you aspire to earn.
So, when you receive a recruiter’s call, pick up your phone. Have an exploratory conversation. Wait before getting serious about the job offer and ask about the salary profile of the job.
Data on Typical Salary Increase When Switching Jobs
The best possible way to understand the current market trend about salary hikes is by checking out employment surveys. Since employers and employees both participate in these surveys, they are great sources of information.
These surveys can help determine a typical salary increase when switching jobs in the coming year. Let’s have an insight into them:
Salary Budget Survey
According to a survey by Salary.com, U.S. employers predict merit increases would rise to an average of 2.6% by the coming year. In addition to that, increased budgets stayed at 3% for the tenth consecutive year.
This survey also showed that even amid the COVID-19 outbreak, performance-based salary allocations were almost stable. In 2020, however, the average salary structure dropped by 1.3–1.6%. Experts think this will remain the same in 2021.
Employers are confident in economic recovery over the next year. So, no need to lose hope. You still have a chance to secure a better paying role.
General Industry Salary Budget Survey
Another great source to get insight into the typical salary increase when switching jobs in 2021 is the survey led by Willis Towers Watson Data Services.
In the coming year, salary raises are on the horizon for job seekers, per its 2020 General Industry Salary Budget Survey. The survey depicts the short-term incentive awards based on employee’s performance can stay constant in 2021. Thus, performance-based wages will probably play a significant factor in increasing your salary when moving jobs.
Moreover, if you’re a star employee of a company, be ready to receive an average pay hike of 4.7%. On the contrary, employees with average performance can only expect a 2.8% salary increase.
US Compensation Planning
According to the survey by Mercer’s 2015/2016 US Compensation Planning, the expected salary increase was 3% on average in 2020.
Did the news of such a small raise bother you? Don’t feel disheartened. Here is a boost to your morale—this survey finds that the most proficient employees can expect up to a 4.6% increase.
How To Negotiate A Pay Increase
Now that you know why changing jobs could help increase your salary, and the data to back it up, you need to know how to handle your salary negotiation.
There are some guidelines set by employers on a typical salary increase when switching jobs. However, if you put yourself in a strong position to negotiate, you can get them to bend the rules.
How can you achieve this? Read further.
Sell Your Strengths
The advantage for people looking for a job change is that they can confidently sell their strengths. If the recruiter can’t guarantee the salary you are worthy of, you’re free to decline the offer and continue the search process. Who knows, maybe they’ll come crawling back!
More organizations are now being transparent about the potential salary of open positions. However, many are still not. It is important to consider your level of comfort with this during your job hunt.
An open dialogue about fair pay, especially if you are a woman, BIPOC, or member of the LGBTQ+ community, is crucial to have. It tells employers that you mean business. And if they respond negatively to your questions, that could be a sign they’re not the right fit for you.
Make sure you also do some research to get an idea of the current job market trend for your industry. As you embark on your job hunt, visit ZipRecruiter. The “Search Salaries” feature allows the users to have an apt perception of the typical salary increase when switching jobs.
This intuitive job portal will provide you with insight into the typical salary range based on your region, industry, and job title. Collecting market-based data from ZipRecruiter gives you an idea of what kind of salary increase you can expect.
another feature that will be helpful to you is that you can browse for job openings. ZipRecruiter boasts over nine million active jobs posted by more than 700 SMBs and Fortune 500 companies spread over the US, UK, Canada, and Israel. It instantly connects job aspirants with employees using advanced AI technology.
What are you waiting for? Job hopping is no more a difficult task with the ZipRecruiter. Start browsing for a new job where you can discuss a higher base pay—making way for you to negotiate well before accepting an offer letter from the hiring manager.
Make the Most of Your Salary
You did it!
You learned the expected average salary increase, based on surveys. You researched and calculated the salary range you may expect based on your region and industry on ZipRecruiter. You nailed the interviews. You got an offer letter with the appropriate pay hike you desired. You switched companies.
Do your efforts end here?
Of course not! Now that you’re making more money, you need to know how to use it responsibly.
Here are two of our favorite resources to help you manage your money.
You indeed have some smart options. Another indirect yet wise approach to boost your income is by investing a part of your salary every month. There are digital resources available to help you save your monthly salaries without taking any headache, such as Digit. This immersive app assesses your monthly income and expenditure to create saving and retirement plans for you.
The feature-rich app is your go-to option to become financially stable.
The second option to reach your financial goal is downloading the Trim app. It facilitates your monthly saving goals by reducing your expenses on regular spendings such as phone, internet, cable, medical bills, and others. So, automate your saving with this secure app.
In a Nutshell…
While you’re job searching, you need to keep in mind what your desired raise is. If you leverage what you’ve learned here and use the resources we’ve provided, you may receive even more than the typical salary increase when switching jobs.
Don’t forget to use ZipRecruiter to help you find your next job.
Best of luck with your search!
The post What Is A Typical Salary Increase When Switching Jobs? appeared first on Miss Millennia Magazine.
Miss Millennia Magazine