Too many get comfortable and stay in one job for a good portion or all of their career, thereby losing out on compounding raises along the way. Staying in one job and just getting the minimum percentage raise year in and year out is not likely to set you up to retire early.
Raises from new jobs tend to be significantly larger than the minimum raise most moderate to large companies pay out annually. Move onto new jobs every 2-3 years, or 4 at the max. This will give you enough time to settle into the job, develop new skills, become a subject matter expert, and build relationships that will set you up for a future (or next) job.
The network you build up by positively (always leave on good terms) cycling through jobs every 2-3 years will become an important asset that will work for you in your career. After all, there is something to be said about it is who you know. While not all jobs come down to this, some do, and this is where that network of relationships will be an asset.
To really accelerate your income, strategically apply for and take new jobs in the first two months after receiving your annual raise. Getting this timing right just 1-2 times in your career will dramatically grow your income.
Many will leave their company to a new one for greater pay. This works, but you also lose benefits such as built-up vacation/Paid Time Off (PTO) days, along with having to start over and rebuild your brand. If you work in a moderate to large size company, there is likely a healthy posting of jobs. Start there first and don’t be afraid to apply for jobs in other businesses or skill areas than where you are currently.
Leverage your internal brand recognition to help setup your next job and ultimately that pay raise. If the internal job market is not healthy or you need a fresh start, then explore externally. If you enjoy the company you work for but are having a hard time finding another job internally to scale your pay, then consider the strategy of leaving for an external job, stay there for a year, but then come back to the original company at a much higher pay. This works well in moderate to large size companies as they often recruit external talent at a much higher starting pay scale than they offer internal candidates.
The compounding effect to growing your income is critical to reaching financial freedom and moving on from corporate office life. Just like the way your 401k or brokerage balance compounds over time, so does your income. Don’t sit still and accept the minimum, if anything, annual pay increases in the same job.
What other tips do you have to maximize your income in Corporate America? Leave a comment below.