Why Job-Hoppers Earn More—and Why You Should Consider Moving On

Introduction

If you've been at the same company for 2 to 10 years, it’s natural to start wondering if staying loyal is the best move for your career or if it’s time to explore new opportunities. While there’s a lot to be said for stability and comfort, research shows that people who switch jobs every few years tend to earn significantly more than those who stay put. Here’s why—and how you can start planning your next career move to make sure you’re getting the best value for your skills.

Why Job Hoppers earn more

One of the main reasons people who change jobs regularly earn more is that companies tend to offer the biggest pay raises to attract new talent. If you’ve been with the same employer for several years, you’ve probably seen yearly raises of around 3-4%. Meanwhile, those who move to a new company every couple of years often secure salary increases of 10-20%, sometimes even more depending on their industry or demand for their skills.

Recent reports confirm this. For example, according to ADP, job switchers in the U.S. saw wage increases close to 10% in 2023, while those who stayed put received much lower bumps. The reason is simple: companies are willing to pay more to bring in fresh talent, but often don't feel the same pressure to reward long-term employees.

The "Loyalty Discount" and Inflation

Staying loyal to one company for too long can result in what’s known as the "loyalty discount." This happens because, over time, companies often take their long-term employees for granted. They assume that if you haven’t left, you’re content, and they focus their biggest offers on attracting new hires or retaining employees who threaten to leave. This complacency means long-term workers can end up earning significantly less than new hires in similar roles.

Worse, the rising cost of living and inflation means that staying in a job without significant salary growth can leave you struggling. With inflation reaching historic highs—peaking at 9.1% in 2022—the costs of housing, groceries, and energy have surged. For those staying at the same company, raises rarely keep up with these increased expenses. In contrast, job-hoppers have the advantage of negotiating salaries that reflect these rising costs.

Why Moving Jobs Can Boost Your Career

Beyond the financial aspect, job-switching helps accelerate career growth. Changing companies allows you to take on new challenges, acquire fresh skills, and expand your network. In today’s fast-paced, technology-driven world, gaining a diverse set of experiences is incredibly valuable. Each company brings different technologies, perspectives, and teams, which can make you more adaptable and marketable in the long run.

Staying at one company too long, however, can limit your growth. You may find that promotions come slower, or that your skill set becomes stagnant. Job-switchers often climb the career ladder faster, gaining titles and responsibilities they might have to wait years for at a single organization.

Tips for Making Your Move

If you’ve been with your company for 2 to 10 years, it’s a great time to assess your options. Here are some practical steps to get started:

1. Evaluate Your Current Situation: Check salary benchmarks for your role on sites like Glassdoor, Payscale, or LinkedIn Salary. Compare your compensation to market rates, factoring in your experience and region. This will help you gauge whether you’re being underpaid. Doing your research can give you a better idea if the grass is greener or not..
2. Update Your Skills: If you haven’t gained new skills in a while, consider taking courses or earning certifications that are relevant to your industry. Whether it's learning a new software or improving leadership skills, adding fresh expertise to your portfolio will make you more attractive to potential employers. Whilst you are at your current company you may as well get the most out of being there so why not learn something new and take on more responsibility.
3. Polish Your CV and LinkedIn profile: Make sure your CV highlights your key accomplishments and impact—not just your daily responsibilities. On LinkedIn, ensure your profile is up to date and reflects your skills, achievements, and endorsements. Recruiters are constantly searching for talent, and an optimised profile increases your chances of getting noticed.
4. Network Proactively: Networking is crucial, whether you’re actively looking for a job or just keeping an eye on the market. Determine what companies you like, who at the company are good to know for your career and then make sure they know who you are. Attend industry events, connect with peers, and engage in online communities. These connections often lead to job opportunities you wouldn’t find on job boards.
5. Start Looking Quietly: Even if you’re not sure you want to leave yet, it’s wise to set up job alerts and keep an ear to the ground. You don’t need to make a public announcement that you’re on the hunt—just be discreet and explore options at your own pace.
6. Negotiate Aggressively: Once you get a job offer, don’t be afraid to negotiate. Many people settle for the first offer, but it’s common practice to push for a better salary, benefits, or even more flexible working conditions. If they’re offering you the job, chances are they’re willing to make concessions to get you on board.

Is Now the Right Time?

It’s true that the job market is facing challenges right now. Layoffs have hit sectors like tech hard, and high interest rates have slowed hiring in other areas. But that doesn’t mean you should hold off on making a move. Even in a difficult job market, companies are still looking for top talent, especially if you have in-demand skills or experience. In fact, it’s often better to explore opportunities when you’re not in urgent need of a new job.

Keeping an eye on the market and staying connected with your professional network is always a smart strategy. Even if you’re not ready to leave just yet, you’ll be in a stronger position if you know your market value and are prepared to act when the right opportunity comes along.

Final Thoughts

If you’ve been with your company for a few years, now might be the perfect time to evaluate your career path and consider making a move. The data is clear: job-hoppers consistently earn more and grow their careers faster than those who stay in one place. While the job market can be tough, taking control of your career, updating your skills, and staying connected with your network will help you capitalize on the opportunities that come your way.

Whilst your loyalty to your company is appreciated, the company comes first so when push comes to shove you may find yourself looking for a new job anyway so you should get ahead of it.

In the end, the best time to find a new job is when you don’t need one. Start exploring your options now, and you might just find the salary and career growth you’ve been missing out on.