While it used to be quite common to stay at the same company throughout your life, it is no longer unusual for an employee to change jobs several times throughout their working life. We show what advantages frequent job changes can bring.
Employees in Germany have become much more open to changing jobs in recent years. This is the result of the “Job Change 2019” study, in which 1,000 employees were asked about their career plans on behalf of JobUFO. 54 percent of Germans stated in the study that they were open to changing jobs or were already about to do so. The reasons for changing jobs can be numerous; Many people are certainly hoping for a higher salary. Wage increases within a company are often not so easy to implement and are actually not as high as you might think.
Salary increases are necessary to compensate for inflation
The reason for this is the inflation targeted by the European Central Bank. The Federal Statistical Office’s records since 1991 show that the percentage change in the consumer price index in Germany has always been positive. In 2018 and 2019, for example, prices increased by 1.9 and 1.4 percent, respectively, compared to the previous year. If you compare these numbers with the development of nominal wages, you will see that the nominal increase in salary alone does not say whether you actually earn more money. According to the Federal Statistical Office, average nominal wages in Germany rose by 3.1 percent in 2018, but after deducting inflation, the real salary was only 1.3 percent higher – in 2019 it was only 1.2 percent. If the nominal wage increase is even lower, it may be that even less of the wage increase remains.
This means: Even if you are satisfied with your current salary, you should negotiate salary increases with your employer at regular intervals. Because of the positive inflation rates, a lack of a salary increase actually acts like a “salary reduction”. Therefore, the percentage increase in wages should at least correspond to the inflation rates.
Changing jobs can result in a 10 to 20 percent increase in salary
In contrast to earlier times, it is no longer so commonplace these days to work in the same company throughout your life. What’s more, some experts even recommend actively changing jobs to improve your own financial situation.
In an article in the business newspaper Forbes, economist Cameron Keng calculated how much money is estimated to be lost by employees who stay at the same company for years: “If you stay at the same company for an average of more than two years, you will earn over the course of your time 50 percent less in life,” claims the expert as a result of his research. According to him, the average salary increase that an employee receives when changing jobs voluntarily is between 10 and 20 percent – and thus significantly higher than the expected salary increase in a permanent, long-term employment relationship.
In addition, employers try to “tempt” with further offers; in addition to a salary increase, more flexible working hours or a promotion in the position can possibly be achieved.
Salary increases when changing jobs depend on the industry
Of course, these numbers always depend on the employee’s individual conditions and industry; Nevertheless, according to the expert, regular job changes are still worthwhile. The financial difference can be particularly large, for example, in sectors with a shortage of skilled workers, as the pressure on employers is increased here.
Changing jobs should be consistent with the employee’s life situation
However, the Forbes article points out that a job change should also depend on other factors. While so-called “job hopping” can be very promising in terms of salary, Andrew Bauer, CEO of Royce Leather, also advises taking into account effects such as “quality of life, mental health, physical health and better moral standards.” According to the expert, a job change is only really advisable if these also correspond to the employee’s life situation.
Pauline Breitner / editorial team finanzen.net