“Should You Ask for a Raise or Change Jobs? Factors to Weigh”

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Asking for a Raise vs. Changing Jobs: What to Consider

Every worker wants to be compensated fairly, especially during times of persistent inflation, high grocery bills, and steep interest rates. If your current salary isn’t cutting it, you face a tough decision: Should you ask for a raise or look for a new job with better pay?

This decision isn’t simple. There are many factors to consider, from benefits to job satisfaction and career growth potential. Here are some ways to decide between changing jobs and asking for a raise.

How Much Can I Make From a Raise vs. Moving Jobs?

Most employers increase pay by 3% to 5% annually, but you might get a more generous raise with a promotion or if you’re a top performer. However, many employers limit salary increases, so switching to a different company might offer higher starting pay.

In pre-pandemic 2019 and 2020, changing jobs could result in around a 10% pay increase, according to a 2023 Bank of America report. During the “Great Resignation” starting in 2021, job-switching could mean around 20% higher pay. By April 2023, this increase shrank to 13% due to a loosening labor market and rising wages from inflation.

Do I Really Want to Stay?

A job is about more than just money. Consider other impacts of staying versus going. Does your current position offer great benefits, room for growth, job satisfaction, work-life balance, and purpose? Or are these things missing for you? Weigh all aspects of work and decide if more money alone is worth staying or going.

Can I Ask for Anything Besides a Raise?

If you feel undervalued but unsure a raise is possible, consider negotiating other benefits or perks. Ensure your requests add enough value to overcome a smaller (or no) raise. Consider negotiating:

• More vacation or sick days
• Additional flexibility (remote working, a four-day workweek, or flexible hours)
• A higher title
• Changes to your role or responsibilities
• A guaranteed timeline for promotion
• Employer-paid professional development, certifications, or tuition assistance
• More stock options or equity
• Higher retirement account match
• Commuter benefits
• Health benefits, such as a gym membership

When Should You Ask for a Raise?

There are compelling reasons to stay at your current company and advocate for a raise rather than leaving. Here are a few situations when that could be wise:

• You really like your job: If you enjoy your day-to-day work, company culture, or coworkers, it could be worth staying and asking for a raise.
• You’ve had recent success: If you’ve just completed a major project or your company exceeded profit goals due to your work, seize these moments to lobby for a raise.
• You have valuable benefits: If you have access to valuable employee benefits, these perks may make your job worth keeping, especially if you can also negotiate higher pay.

When Should You Change Jobs?

On the other hand, there are times when it may be better to look elsewhere, including when:

• You don’t have solid (or any) benefits: If you lack essential benefits like health insurance, changing jobs could net you more money-saving benefits plus better pay.
• You want a bigger change: If you’re unhappy at work beyond your paycheck, a raise may not be the answer. This could be an opportunity to find a better fit elsewhere.
• Your salary and growth potential are too low: If you’re told you won’t get more than a 3% raise each year or that higher positions are unavailable, consider leaving for another job with more room for growth.

Frequently Asked Questions

• How Often Should You Switch Jobs?
• How Often Should You Ask for a Raise?
• What Is a Typical Salary Increase When Switching Jobs?

Leverage a Potential Job Change for a Raise

Some employers are more open to negotiating a raise when countering an offer from another employer. If you’re considering leaving due to pay and land a job offer elsewhere at your desired salary, reveal the job offer to your workplace and ask if they’ll negotiate your pay to keep you. Even if they can’t match the offer, you might get a higher raise than without this leverage.

Regardless of the statistics or norms, this is a personal decision about what’s best for you and your loved ones. If you’re struggling to pay your bills, getting higher wages may be your sole objective. But if you have more wiggle room, consider all aspects of your compensation package and work-life balance. If you can’t get more pay through staying or leaving for now, focus on living within your means until you can score a raise. This could mean getting on a budget, consolidating your debt, or picking up a side hustle.

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