All that job switching you hear about? It turns out those who did… are making more money. According to a new Pew Research Center report, most people who switched employers between April 2021 and March 2022 saw an increase in their real earnings — despite surging inflation.
60% of people saw an increase in real earnings after they switched employers, compared with 47% of those who remained in the same job, Pew found.
- The median worker who found a new job enjoyed a 9.7% bump in inflation-adjusted earnings, compared to a -1.7% dip for those who stayed put.
- The recent trend was quite different from the previous year: From April 2020 to March 2021, 51% of job-switchers saw a real earnings income boost, versus 54% of people who stayed put.
- 22% of U.S. adults say they are “very” or “somewhat” likely to look for a new job in the next six months, Pew found in a poll of 6,174 people conducted from June 27 to July 4.
Why do we care?
I’m putting aside the recession or not debate with this data point and instead noting that job seekers do better leaving. There’s data – so if retention is essential to you as a leader, you had better compensate here.
The message to employees is loud and clear – there is money to be had in a new job, and with a quarter of the workforce looking right now, take a look around your office. One of those four people is probably looking.