I’ve seen this mentioned before, and it really does make sense. Stay put, and you’ll get whatever the company budgeted for a raise. Leave, and potentially another company has a whole different level of budget for the position.
“Americans switching jobs are getting bigger raises than employees staying put, with companies in technology and construction giving the largest pay hikes to those willing to take new positions amid a historically tight labor market.”
Two things come to mind above and beyond this statement though.
1. Small companies struggle in a tight labor market like this one. They simply can’t afford to pay the same salaries that larger competitors can. They have to get imaginative. Which brings us to..
2. It’s not just more money that you may be able to get from changing jobs. Sometimes, like the company that has a certain budget for raises and doesn’t ordinarily make big adjustments, they are similarly situated on things like remote work, or PTO. So, in some cases maybe leaving the current job isn’t about more money, but it’s about something that the current place can’t offer because it would be too big of a change for them to make to try and offer that to everyone now.
Which circles us back to #1. Small businesses can offer a level of flexibility that large places would struggle to implement. It’s too much change.
So, if you want something that you current organization won’t make available because it’s not prepared to make those kinds of cultural changes, switching jobs could help with that as well.
I’ve certainly had that experience myself. It’s worth thinking about this outside of just the money aspect. Not that the money isn’t important too.