How to Increase Compensation by 163% in Less Than 3 Years by Job-Hopping

Landing a high-paying job right out of college is a dream come true for many graduates. But for me, that was just the beginning. In less than three years, I managed to increase my compensation by over 150%, from $63,500 to an estimated $167,000 for my next job. How did I do it? Job-Hopping played a huge part in the quick increase in my total compensation.

What is Job-Hopping

Job hopping is a term used to describe the practice of changing jobs frequently, often every few years or less. It’s typically associated with individuals who switch employers more frequently than what is considered the norm in their industry or field. Job hopping can be driven by various reasons, such as seeking better compensation, career growth opportunities, or a better work-life balance. While some employers may view job hopping negatively, others see it as a sign of adaptability, ambition, and a willingness to take on new challenges.

Job-Hopping vs Staying at Current Company

The average salary increase from promotions versus job hopping can vary based on several factors, such as the industry, company, and individual performance. However, in general, job hopping tends to yield a higher salary increase compared to getting promoted within the same company.

According to a study by LinkedIn, employees who switch companies tend to see a salary increase of 15-20%, while those who stay with their employer and get promoted receive an average increase of only 3-5%. Additionally, job hoppers may have more leverage in negotiating their compensation packages since they are in a position to compare offers from multiple employers.

On the other hand, getting promoted within the same company may offer other benefits, such as familiarity with the company culture, established relationships with colleagues and clients, and a clear path for career advancement. Additionally, if an employee has performed exceptionally well in their current role, they may be offered a more significant salary increase than the average 3-5% for promotions.

Both promotions and job hopping can lead to salary increases, and the decision to pursue one over the other will depend on individual circumstances and goals.

 

Although Job-Hopping has many benefits, there are also some cons that could make this a bad career move for you.

Here are some

1. Stressful: Job hopping can be stressful since it involves leaving behind the comfort and familiarity of a current job and starting fresh in a new environment. There may be new systems and processes to learn, new colleagues to work with, and a new company culture to adapt to.
2. Building new relationships: Building new relationships with colleagues and clients can take time and effort, and it can be challenging to start from scratch every few years. This can also lead to feeling isolated or disconnected from a team, which can impact job satisfaction and performance.
3. Relocation expenses: Depending on the nature of the job-hopping, it may require relocation to a new city, state, or even country, which can incur significant expenses such as moving costs and higher living expenses.
4. Hard time transitioning to a new culture: It can be challenging to navigate a new culture or environment, especially if there are significant differences in communication styles or work expectations. This can lead to feeling like an outsider or struggling to integrate effectively.
5. A lot of unknowns in terms of the team: It’s hard to know what you are getting into with a new team. There may be personality conflicts, toxic workplace cultures, or poor leadership that can lead to poor performance or job dissatisfaction.

While job-hopping can have its benefits, it’s essential to consider the potential cons before making a decision. It’s important to weigh the benefits and drawbacks of each opportunity and consider factors such as personal priorities, career goals, and work-life balance.

Tips for Increasing Your Salary Fast

Here are some of the strategies that worked for me.

1. Job hopping: While some people believe that staying at one job for a long time is the key to career success, I found that switching jobs was more beneficial for my compensation. By switching jobs twice in less than three years, I was able to get better job titles and a 56% increase in my total compensation.
2. Tracking accomplishments: Keeping track of my accomplishments helped me get better ratings during my performance reviews and articulate my strengths during interviews. By having a clear record of what I achieved in my previous roles, I was able to prove my value to potential employers.
3. Understanding the market: Knowing what you’re worth and what the market is willing to pay is crucial to ensure that you’re being compensated fairly. Researching online is a good starting point, but talking to peers in your industry and geography can provide more relevant insights.
4. Negotiating salary: I negotiated my salary for every job offer I received, even when I knew the offer was already above the market rate. Employers expect negotiation and it shows that you value your worth and are confident in your skills.
5. Advocating for myself: Being confident and advocating for myself helped me get better performance reviews and job offers. I was honest about my accomplishments but also acknowledged areas where I had room for growth.
6. Leveraging my network: Getting paid more is not only about what you know but also who you know. I leveraged my network to get interviews and preparation tips. Surrounding myself with top talent and being vulnerable enough to ask for help when needed has been a game-changer.

While luck played a role in my journey, I believe that being prepared and proactive helped me take advantage of the opportunities that came my way. If you’re looking to increase your compensation, consider these strategies and see what works for you.