Job Search Tip of the Week #5 (2019)
Caressa Moy | January 28, 2019 | 9:00 am
Can you make more money by quitting your job? Recent macroeconomic findings from the Research Department of the Federal Reserve Bank of Kansas City suggest so.
“Unlike wages of stayers, wagers of switchers are much more cyclically sensitive, as contracts signed with new employers are more likely to reflect current economic conditions,” noted economist José Mustre-del-Rio in the research report, “Following the Leaders: Wage Growth of Job Switchers.” “Historically, wage growth of switchers tracks the quits rate, suggesting that as the labor market continues to recover and the quits rate continues to rise, switchers’ wage gains should rise even further as a result of competitive pressures. Consistent with this hypothesis, we find that switchers’ wage growth has been quite strong the past several quarters as the labor market continues to tighten.”
In layman’s terms? More American workers are voluntarily quitting their jobs (in fact, the number of people quitting jobs just hit an eight-year high, according to the Bureau of Labor Statistics), which indicates a steadily improving labor market. And those who quit their jobs to pursue new job opportunities tend to be able to negotiate pay raises above the inflation rate and cost of living increases.
Could your loyalty to your employer be costing you? Not necessarily – so stop for a moment before you tender your resignation. Remember, there’s more to a job than just money, and parting ways with your current employer to chase a higher paycheck elsewhere may not be the best course of action for you if it means sacrificing your happiness or career growth.
Certainly, there are benefits to being a job hopper, including a potential salary jump. However, asking for a raise works most of the time, according to a recent survey from compensation research company PayScale: 75% of those who renegotiated got a pay bump, with 44% getting the amount they requested. So if you’re otherwise happy at your current employer and plan on staying, first take these salary negotiation steps and then check out these raise discussion tips.
But if you’ve decided it’s time to move on, follow proper resignation etiquette to avoid burning bridges. Consider working with an experienced IT recruiter like Chase Technology Consultants, who will present you with good-fit job opportunities, advise you on your market value, and skillfully negotiate your compensation and benefits package for you.
Remember: Quitting your job solely because you feel and/or are underpaid may not be the best course of action for a myriad of reasons. For instance, by being currently employed you maintain your market value and give yourself ammunition to use when discussing salary with a prospective employer and/or renegotiating with your current one — so, quitting your job may not help you achieve your goal of increasing your income! It doesn’t hurt to ask for a raise if you do it the right way.
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