Job Hopping: Does It Pay Off?
As the dynamics of the job market evolve, so does the perception of job hopping. Historically, job hopping, or frequently changing jobs, was often viewed negatively. It was seen as a sign of instability or a lack of commitment, particularly in the 1970s when it was even branded “Hobo Syndrome.” However, this perception has shifted, and job hopping is now more accepted, especially in certain industries and changing workforce dynamics.
The reasons that people have shorter tenures than in previous years are many, but fall into these four general categories:
Salary increase. According to a survey by Glassdoor, job hoppers experience an average salary increase of 10 – 20% compared to those who stayed in the same role over a long period. These higher salaries are incentives for people to consider other opportunities.
Professional development. A new role or company can provide greater career development opportunities, opportunities to advance your skill set, as well as offering quicker progression into a senior position.
Work-life balance. Some individuals seek job changes to achieve a better work-life balance, aiming for roles with flexible hours, remote work options, or reduced stress levels. 85% of employees believe the work environment affects their mood and productivity.
Company Culture and Fit. Job hoppers may look for environments that align better with their values, work styles, or cultural preferences, seeking a better fit with their personal or professional aspirations.
Of course, there are potential drawbacks to changing jobs frequently. The practice is more accepted in some industries, like the tech sector than in others, such as the insurance industry. Those who job hop may risk coming across as opportunistic and rigid employees who find it hard to adapt to the working culture and successfully integrate into a workforce. In large companies, there may be a stigma due to a generational divide: those who have spent decades at a company and reached the top of the career ladder are often its key decision-makers. They may look askance at younger workers who have had three different employers over the past five years.
A recent article in the Wall Street Journal reported that changing jobs no longer guarantees significant increases in earnings. The article states that “the salary difference between those who stay in their roles and those who change jobs has collapsed to its lowest level in 10 years” and that workers who negotiated their salaries during the pandemic, especially at high-growth tech firms, aren’t likely to find a new job for more money than they are already making.
If you’ve moved a few times, ensure you analyze whether job-hopping still benefits you. Evaluate the potential gains and losses before you take another job and review your résumé once or twice a year to see if job-hopping is still the right path. In this current job market, employees may need to be judicious about a job switch and evaluate the pros and cons to determine if the ROI is there. Job hopping is no longer the red flag that it once was, and many employers see that it results in diversity of experience rather than indicating unreliability. Regardless, be sure you approach any career move with a plan. Review your options, assess the risks and benefits, and choose the best path for you.