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alexandrafeig
- February 27, 2025
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This is a question I get asked all the time by job seekers. Why does switching jobs often lead to a bigger salary bump than staying put?
The reality is that when recruiters are actively sourcing candidates, they’re typically approaching people who are already employed and excelling at their jobs. After all, companies aren’t paying top dollar for underperformers. Many of these candidates aren’t actively job hunting, but if they are, salary is often a key motivator. Some are dissatisfied with their current pay, while others might be content—but either way, a recruiter’s biggest leverage in negotiations is often the ability to offer a significant salary increase.
Of course, that’s provided the candidate falls within the company’s salary range or budget for the role. What happens if they don’t? That’s a topic for another post, where I’ll discuss how to navigate situations where budget constraints come into play.
For now, let’s assume the candidate is within budget, and we move forward with interviews. Let’s take a hypothetical role: “Marketing Manager II.” This position typically requires 5-8 years of experience, with a target salary of $100K. That $100K figure represents the midpoint of the range, which could be something like $75K-$125K.
Here’s how this typically works in practice:
- If I find a candidate with 4-6 years of experience, my expectation (to be confirmed in interviews) is that their salary would likely fall within the $75K-$100K range. Someone closer to 4 years might be offered $75K, while a candidate with closer to 6 years could be offered $100K.
- On the other hand, a candidate with 8 years of experience would likely fall on the higher end of the range, around $115K-$125K.
All of this is validated during the interview process, of course. It’s not uncommon to assess someone with 8 years of experience and find they’re missing key skills, which might result in an offer closer to $110K.
By the time the company has narrowed it down to their top candidate, it’s common for that person to have more experience and command a higher salary. Why? Because a new hire is an opportunity for a manager to fill skills gaps on their team and align with their future goals. For example, someone with 5-6 years of experience might be replaced by someone with 8-9 years, which explains why the salary bump from an external employer can be so much bigger than an internal raise.
It also comes down to risk. Most people aren’t going to leave a secure job where they’ve proven themselves—and are receiving bonuses—unless the new role offers a compelling financial incentive. For example, if someone is earning $80K at their current job and the new role offers $90K, they might think, “Wow, that’s a $10K increase! My current employer would probably only give me $85K.”
But here’s what many people overlook:
- Changing jobs often means forfeiting one, or even two years’ worth of bonuses, depending on timing.
- Many companies don’t allow you to take PTO during a probation period, which could impact your quality of life.
- You’re also going to need to prove yourself and your abilities all over again, so you’re likely looking at longer hours and more stress for at least a few months.
In short, companies know they need to incentivize you to take the risk of switching jobs. If the pay increase isn’t enough to outweigh the uncertainty and potential downsides, you wouldn’t make the jump. And that’s why salary bumps tend to be more substantial when you change employers—it’s all about risk and reward.
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