A new study shows that employees who accept a new position at another company receive more money than their former peers who remain
, the biggest beneficiaries are job hoppers in the information industry who realized 9.7% annual wage growth, construction workers with an 8.7% increase and professional and business services with an 8.3% premium. Those who stayed at their companies earned about a 4% increase in pay. On average, those who choose to switch jobs enjoyed compensation growth of 5.3%. The only large groups that suffered from falling wages—when changing jobs—were in the leisure and hospitality sectors.
Anecdotally, in my recruiting practice—placing professionals on Wall Street and in financial services over the last 20 years—I’ve seen firsthand increases of 10% to 20% on average for people who’ve switched jobs. The spread is due to the hotness or coldness of the market at a particular time period, supply and demand imbalance of candidates and other factors. With these large margins, it was highly attractive for people to jump ship. Many moved a number of times.
I’ve also encountered many people who elected not to switch jobs, knowing that they’ll earn far less than their colleagues who move on. They claim that it's not worth the risk of entering the unknown, having to prove themselves all over again and stress over embarking upon a new job search. They also claim that their company, similar to Amazon, will try to help them grow within the firm.
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