Why job hopping doesn’t always pay off
Changing jobs is a fact of life for most of us. In fact, according to the World Economic Forum, by 55, the average American will have switched jobs 12 times.
In a strong market, switching roles every year or two might lead to a 10% to 20% salary boost. That may sound appealing, given the median American salary is $61,984 per year.
But with inflation and slow wage growth, job hopping may not stretch your paycheck as far as you'd hoped.
It can also make future employers think that you're a flight risk, especially if you’ve never stayed at a company more than a year. That might cost you a dream role, even if your resume looks impressive on paper.
And there are long-term financial tradeoffs. Retirement contributions may come with a vesting period for up to three years — meaning you might not get to keep all of your employer’s 401(k) match if you leave too soon.
Health-care benefits like extended parental leave, fertility treatment coverage or mental health coverage may also have waiting periods or eligibility conditions tied to your tenure.
On the bright side, staying with an employer long enough to build trust can also lead to internal promotions, mentorship or participation in high-impact projects. If you're starting over, these opportunities are hard to come by.
Discover the power of FreeCash – your ticket to easy money
Dive into a world of rewards at FreeCash where earning cash is as simple as a click. No gimmicks, just real cash for your time. Join the community of earners today and watch your wallet grow effortlessly.
Make Money NowThings to think about before you make a jump
Here are a few things to consider before jumping into a new job.
- Make sure it aligns with your career goals: Ask yourself if this move will help you grow. Will you build new skills, expand your leadership potential or take on greater responsibilities?
- Research salary trends in your industry: Check if your pay expectations align with the market. Resources like Glassdoor and Payscale will reveal whether the new role is a financial upgrade or if you’re better off negotiating a raise in your current position.
- Think beyond the paycheck: A higher salary may not be worth it if you face burnout, poor leadership, or a toxic environment. A good tip is to read reviews and talk to current employees about the work culture.
- Consider the benefits you’d give up: Retirement contributions, stock options, and vacation days often grow with tenure.
- Don’t overlook internal opportunities: The growth you’re looking for could exist at your current organization. A raise, promotion or department switch might give you a new challenge without starting over somewhere else.
Career growth isn’t always about moving. Growing where you are could lead to better rewards.
The richest 1% use an advisor. Do you?
Wealthy people know that having money is not the same as being good with money. Advisor.com can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.
Try it now
