Millennials are often portrayed as disloyal job hoppers always looking for the next best thing. But maybe you should be job hopping even more.
Employee loyalty doesn’t mean much today. In fact, those who stay with the same company for years tend to see lower pay growth than people who move around. In other words, it doesn’t always pay to stick with the same company for years. Find out how switching careers can increase your earnings over time.
Job hopping can lead to a higher salary
Millennials represent the most highly educated generation to date and they’re working in the most productive economy. But unfortunately, that doesn’t mean they’re the most highly compensated.
According to American Progress, the median 30-year-old in 2014 earned the same amount of money as a 30-year-old in 1979.
But there is something you can do to increase your salary. Switching jobs is one of the best ways to boost your income, surprisingly enough.
The ADP Research Institute found that workers aged 25 to 34 saw pronounced salary increases from full-time job switching. In comparison, people who stayed in one company saw sluggish income growth.
Just how much does employee loyalty slow down wage growth? According to Forbes, staying at the same company for more than two years could cut your lifetime earnings in half — an estimate that they claim is conservative. The longer you work, the lower your salary could be compared to your job-hopping peers.
Annual raises might not be enough to boost your income
Instead of renegotiating your salary every few years at a new job, staying with one employer forces you to rely on annual raises for a pay bump.
You may only see small, incremental increases to your baseline salary. Annual raises may even be disappearing from the equation, according to the Resolution Foundation.
While a 4 percent yearly raise was once common, now many workers don’t see any salary increase. Those who are getting a raise may not be keeping up with inflation either. With a 2.1 percent inflation rate, a 3 percent raise is, in effect, only a 1 percent bump.
If you started out with a $55,000 salary and got a 3 percent annual raise, you’d be making $63,760 after five years. But if you found a new job, you could potentially increase your income by that much or more all in one go.
People who stay in their jobs long-term are at risk of seeing their earnings stagnate. If you start somewhere new, you could hook an entirely new baseline that’s a better match for your skills and experience.
Millennials aren’t moving around as much as you think
Millennials have a reputation for jumping ship whenever a new opportunity comes along. But the Resolution Foundation found that people in their twenties and early thirties are actually opting for job security. In fact, people in the generation born 10 years earlier were more than twice as likely to switch companies.
Job security certainly has its benefits, but it can also go hand in hand with stagnation. Before committing to a company, find out whether it’s also committed to you. Ask how the company plans to support your professional, personal, and financial growth.
How can you boost your earning potential?
All this data, of course, doesn’t mean that you should run out and quit your job today. Nor do you want to move around so often that potential employers see you as a flight risk. But the research does suggest you shouldn’t feel guilty about leaving a company in pursuit of a higher-paying opportunity.
If your job doesn’t offer much professional or financial development, it could be time to look for new opportunities. As you look, research salary information on a site like Payscale to get a realistic sense of your earning potential.
By gathering data, you’ll be better equipped to navigate salary negotiations and you’ll know when a company isn’t measuring up to its competitors.
If you’re looking to increase your income, consider acquiring new marketable skills. General Assembly and Dev Bootcamp, for example, offer continuing education programs. Their classes train people for highly-paying careers in tech.
Is switching jobs right for you?
Salary isn’t the only factor when it comes to choosing a job. Starting a new job can be risky and stressful, and you also want to prioritize personal fulfillment and professional development.
There are lots of factors at play when it comes to job satisfaction. But if a low income is holding you back, consider what you can do to increase your earning potential.
Whether it’s learning new skills or changing companies, you can put yourself in a position to make more money.
Check out this article for more ways to market your skills to new employers.
Interested in refinancing student loans?Here are the top 6 lenders of 2018!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 5.87% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 5.87% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on ourstudent loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Savings example: average savings calculated based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were disclosed. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
Application detail: 5 minutes indicates typical time it takes to complete application with applicant information readily available. It does not include time taken to provide underwriting decision or funding of the loan.
Instant rates mean a delivery of personalized rates for those individuals who provide sufficient information to return a rate. For instant rates a soft credit pull will be conducted, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
Total savings calculated by aggregating individual average savings across total borrower population from 9/2013 to 12/2017. Individual average savings calculation based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were provided. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.47% – 6.99%3||Undergrad & Graduate||Visit SoFi|
|2.47% – 5.87%1||Undergrad & Graduate||Visit Earnest|
|2.47% – 8.03%4||Undergrad & Graduate||Visit Lendkey|
|2.95% – 6.37%2||Undergrad & Graduate||Visit Laurel Road|
|2.48% – 6.25%5||Undergrad & Graduate||Visit CommonBond|
|2.72% – 8.32%6||Undergrad & Graduate||Visit Citizens|