Money Girl reveals 5 tips for making more money, without having to get a second job or go back to school.
How Much Does Job Hopping Pay?
So exactly how much does it mean to your bank account to switch jobs? A recent study by ADP showed that changing jobs increases earnings an average of 5.3%, while those who stay with their employer see increases of just 0.7%.
However, how much of a pay raise you’ll receive from job hopping varies depending on your age:
- Workers age 16 to 24 were the most likely to switch jobs, and also saw a significant pay hike of 8%.
- Workers age 25 to 34 switched less frequently, but saw a slightly higher wage increase of 8.3%.
- Workers age 35 to 55 switched even less frequently, and showed a lower pay bump of 4.8%.
- Workers over age 55 were the least likely to switch jobs, and received the lowest wage increase of just 0.8%.
This means job hopping pays off the most for Millennials, about half as much for Gen X workers, and not much at all for Baby Boomers. A separate study showed that Baby Boomers are more satisfied with their compensation than younger workers, which may be one reason why older workers tend to stay put.
5 Tips to Get a Job That Pays More
If you’re ready to increase your income, here are 5 tips to get a job that pays more:
Tip #1: Start Networking
It’s important to constantly be building your professional and personal network. Recruiters regularly use LinkedIn to find potential job candidates, so beef up your profile by highlighting the skills you want to be employ in your next position.
Even if you really love your job, always be open to exploring new opportunities. If you end up with a job offer, you can always use it as leverage to get a raise with your current employer.
Tip #2: Leverage Recruiters
And speaking of recruiters, leverage their time, connections, and resources to find a new job, without infringing on your current one. An employer typically pays a third party recruiter either a flat fee or a percentage of your first year’s salary.