How Some People Are Doubling Their Yearly Raise – Motley Fool

Credit Cards
Banks
Check out our top picks of the best online savings accounts for August 2021.
Get Started!
Brokers
Mortgages
Insurances
Loans
Before you apply for a personal loan, here's what you need to know.
Get Started!
Knowledge
by Brittney Myers | Sept. 18, 2021
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Image source: Getty Images
Getting a promotion at your current job may no longer be the key to better pay.
For decades, the idealized career often involved putting years into one employer so you could rise through the ranks and retire with a solid pension. But the era in which company loyalty pays off may finally have died.
These days, you’re probably going to see the best boost to your bank account if you remain flexible about who you work for — and how long you stay there. At least, that’s what new data says.
According to a recent study from ADP, workers who switched jobs during the pandemic actually saw much higher wage growth — more than double, in some cases — than those who remained with their employer.
In fact, across all industries, those who stayed at their current jobs saw only an average 3.1% increase, while those who switched jobs got an average 5.8% increase.

One email a day could help you save thousands

Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Tips and tricks from the experts delivered straight to your inbox that could help you save thousands of dollars. Sign up now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
Those in higher-paying jobs — and those in industries least hit by the pandemic — had the highest wage growth from switching jobs. This includes several industries where working from home was more likely than furloughs and layoffs.
Here’s how several workers fared in several industries:
The finance and information industries are notable here, as both recorded big wage growth for those who switched jobs in these fields.
However, even in industries with fewer work-from-home opportunities, workers who switched jobs saw increased wage growth, such as in the construction industry. And impressively, the resources and mining industry saw some of the largest gains for switchers — 11.8% — compared to a 6.1% gain for those who stayed in their existing roles.
Overall, the only field where staying at your current job paid off was trade and transportation. Those workers who stayed got an average 4.1% increase, while those who switched jobs received only a 2.2% increase.
Unfortunately, the story is not so happy for workers in the hospitality and leisure industry, which often provides lower wages. This is the only field in which wages did not grow at all — for those who stayed in their roles or for those who left.
Stayers saw an average decrease in wages of 1.4%. Those who switched jobs did slightly better — but not by much, with a reduction of 1.3%. Newcomers to the industry were actually the best off, as entrants received 0.2% wage growth overall.
These numbers are perhaps reflected in the widespread worker shortages we’re seeing in the hospitality industry. Many workers who faced furloughs and layoffs early in the pandemic left the industry for higher-paying — and, often, lower-risk — jobs in other fields.
Although there seems to be a lot of potential for improving your personal finances through a job switch, that does mean heading out on a job search. Finding a new job can be tough at the best of times, but it may be particularly challenging in today’s environment.
For one thing, many interviews are being conducted online, at least in industries where face-to-face work still hasn’t fully returned. Zoom interviews can add extra complications to an already stressful process.
Then there’s the part where you need to discuss salary. Getting paid what you’re worth can be an uphill battle at times, so be sure to do your research and stick to your guns.
In some cases, switching jobs may not be enough to give you the pay bump you’re after — but switching industries could be. You can find some high-paying jobs with modest training requirements that could set you up well in a new field. Whatever the case, keep an open mind during your job search for the best results.
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR into 2023! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read The Ascent's full review for free and apply in just 2 minutes.
Brittney is a credit expert and card strategist whose advice has been featured by major publications and financial sites across the web.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
Related Articles
How to Pay Off Debt
How to Build Your Credit
The Ascent’s Definitive Credit Score Guide
What Is Bankruptcy and How Does It Work?
How to Pay Off Debt
How to Build Your Credit
The Ascent's Definitive Credit Score Guide
What Is Bankruptcy and How Does It Work?
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 – 2021 The Ascent. All rights reserved.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

source

Book an appointment