New data says job hoppers pocket double the salary bumps of those who stay put. Can existing employers compete?
The employee considered her options: She could jump to a job at a new company, collecting a 25% salary boost, or stay put at the company she’d worked for since the pandemic, where she had many strong relationships. She looked at her retirement-account balance, and decided to take the leap. Wallet loyalty trumped corporate loyalty.
She is far from alone. Sixty-four percent of employees believe that strategically jumping ship is the only way to earn substantially more money, according to a survey by Side Hustle, and their hunch has been borne out: Over the last three years, job hoppers’ salaries have risen by 35%, compared to just 18% for tenured employees, according to the same data. “If you want to make a big leap, you’ve probably got to go outside,” says Andrés Tapia, senior client partner at Korn Ferry.
The current moment is particularly ripe for leaping. Just 1 in 10 employees are getting promoted annually, down 23% from 2022 figures, according to one report. At the same time, companies are holding back on salary bumps, with 2025’s average increase projected at 3.7%, according to recent estimates. Many firms are being conservative with their hiring spends due to uncertainty about both the policy environment and the consequences of AI.
High turnover can be harrowing for firms, which are faced with the dual horrors of watching top talent walk out the door and undertaking expensive hiring and onboarding efforts. “I don’t want employees to be thinking and feeling this way, but I know that they do,” says Ron Seifert, North America workforce reward and benefits leader at Korn Ferry.
To be sure, job hopping carries a host of risks for employees too, especially as more firms consider layoffs in this uncertain economy. Without a doubt, job security has become a bigger issue for workers: Korn Ferry’s Workforce 2024 data found that compensation and job security are employees’ second and third priorities, after flexible hours. Concerns about a potential recession are undoubtedly encouraging workers to stay put. “People are still getting laid off, and I’m not sure that firms are putting a whole lot of budget into replacement salaries,” says David Ellis, senior vice president for talent transformation at Korn Ferry. Yet those chasing high salaries feel they have no choice.
Korn Ferry recruiters have seen numerous job-hopping phases over the years. Even if a job hopper might in practice prioritize pay, they note, there are usually underlying issues pushing them toward another job. Simply put, people don’t usually leave beloved jobs. “The other variables driving the push need to be top of mind,” says Flo Falayi, senior client partner in the Leadership and Executive Development practice at Korn Ferry.
Experts advise potential candidates to look beyond salary. “It’s more about cultural and strategic fit, and long-term value,” says Seifert. For those determined to raise their pay, experts suggest making attempts in-house, which requires managing both objective value and also the perception of that value. The best way to make your case for a raise is to quantify your value to the organization or customer. “That’s your best bet—there’s less wiggle room,” says Tapia.
Ultimately, a pay raise is a recognition of value to the organization or customer, says Kate Shattuck, managing partner at Korn Ferry, and getting one requires more than simply jumping ship. At high levels, it requires some form of differentiation. “Typically, you need to deliver value in a way that touches customers differently,” she says.
