It’s an age-old debate: Are you better off from a career standpoint staying at one company for the long-term or switching jobs occasionally? Fortunately, we have some interesting data on wage growth that can help inform the debate!
The Federal Reserve Bank of Atlanta publishes a data series that compares wage growth between Job Stayers and Job Switchers. Overall wage growth for all workers was +3.7% year-over-year in September 2019. But when we break out wage growth between Stayers and Switchers, an interesting picture comes into focus.
+4.3% Growth Job Switcher VS +3.3% Job Stayer
Job Switchers saw year-over-year wage growth of +4.3% while Job Stayers saw wage growth of +3.3%. That’s a pretty big difference. In fact, if you look back since the late 1990’s Job Switchers have seen better wage growth than Job Stayers for most of that period.
The only exception is when the economy is in recession.
Should we all become Job Switchers? Not necessarily.
Switching jobs carries risks. You may move to a new job for more money but realize the culture is worse than the one you left behind. There’s also risk that if you switch jobs too often then future employers will perceive you as a risk to move on after they’ve invested time and energy to train you.
Plus there’s the old adage that money doesn’t buy you happiness!
Income Potential Is One Of Your Most Important Assets
We point out this difference in wage growth so you can stop and think about where you are in your career. One of your most important “assets” is your income potential.
Our desire is to help you maximize the value of this asset just we do for your IRAs, 401ks, and other financial goals.
Wondering how this affects your future finances? Schedule a call with Financial Design Studio to discuss your portfolio today.
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