When you feel like you’re stuck in a rut at work—whether it’s due to stagnant pay, lack of career progression, or a sense of unfulfillment—one question often comes to mind: “Should I ask for a raise or look for a new job?” It's a tricky decision, and knowing whether to negotiate your current position or seek out new opportunities can feel overwhelming.
Fortunately, we can turn to the numbers to help guide us. Let’s dive into the statistics and see what the data reveals about the state of pay raises, job satisfaction, and the job market so you can make a more informed decision.
How Common Is It to Ask for a Raise?
First, let’s consider how many people actually ask for raises. According to a 2023 report from PayScale, only 39% of employees have asked for a raise in the last year. Shockingly, that means 61% of workers either didn’t ask for a raise or didn’t even think to request one. If you’re on the fence about whether asking for a raise is worth it, remember that many people aren’t even asking for what they deserve.
Additionally, Harvard Business Review research shows that women are less likely to ask for raises than men—a gender pay gap issue that still persists today. In fact, studies show that 44% of men ask for raises while only 35% of women do, despite the fact that women have demonstrated similar or higher performance in their roles. This gap suggests that one key takeaway is: if you don’t ask, you won’t get.
How Likely Are You to Get a Raise if You Ask?
If you’re wondering whether asking for a raise is worth it, the stats show it’s very likely to pay off. According to Salary.com’s 2022 survey, 70% of employees who asked for a raise were successful in getting one. However, the likelihood of success depends on various factors such as your industry, current performance, and the financial situation of your company.
Interestingly, employees in technical fields like engineering and IT tend to have more success negotiating raises, with 78% of tech workers receiving their requested salary increase. Compare that to employees in retail and customer service, where the raise success rate is closer to 50%. This shows that the industry you're in can play a big role in the outcome of your negotiation.
However, it’s important to note that 2023’s economic uncertainty has made some employers more cautious about salary increases. With inflation and potential layoffs, some companies are freezing or limiting raises, so it's a good idea to assess your company's financial health before starting that conversation.
How Does Job-Hopping Compare?
You may be wondering, “If asking for a raise doesn’t seem like a viable option, would switching jobs be a better route to boosting my salary?” Well, the data shows that job-hopping can indeed be a powerful strategy for salary growth. According to LinkedIn’s 2022 Workplace Report, employees who switch jobs can see an average 10-20% salary increase.
In fact, the 2023 Robert Half Salary Guide reports that job changers receive larger pay increases than employees who stay in the same position. For example, if you are a software engineer and change jobs, you could see a 20% jump in pay, while those who stay in the same role can expect a 5-7% salary increase.
Additionally, Glassdoor’s 2023 survey found that 45% of employees felt they had to leave their job in order to get a higher salary. So, if you’re feeling underpaid in your current role, know that looking for a new job may offer you the salary increase you’re looking for.
However, there’s a downside to job-hopping as well. A 2022 Gallup poll found that 58% of job switchers regret leaving their previous position after just one year. Reasons for this include feeling like they jumped for the wrong reasons, not understanding the company culture, or finding that the new job doesn’t meet their long-term career goals. Therefore, before jumping ship, make sure the new opportunity aligns with your personal and professional aspirations.
What’s Happening with the Job Market?
Another factor to consider is the current state of the job market. According to the U.S. Bureau of Labor Statistics, the quit rate in the U.S. job market is still relatively high, with about 4 million people quitting their jobs each month in 2023. This suggests that there are still plenty of opportunities available if you’re looking to make a move.
However, keep in mind that the job market has also become more competitive, especially in certain industries. For example, IT and tech jobs have seen an increase in competition due to an influx of talented candidates looking for new opportunities after layoffs. Hospitality and retail, on the other hand, are seeing lower competition as people look for more stable and flexible work.
Job-hopping may be an appealing option for salary growth, but it’s also important to assess whether the current job market is in your favor for securing a better opportunity. Researching your industry and the demand for your skills can help guide you in making the best decision.
The Bottom Line: Ask for a Raise or Move On?
Ultimately, whether you should ask for a raise or look for a new job depends on several factors, including your industry, job satisfaction, and how valued you feel at your current company. Based on the data, here are a few guidelines to consider:
Ask for a Raise if you believe your performance is strong, if your company is financially stable, or if you’ve been in your current role for over a year without a salary increase.
Look for a New Job if you feel undervalued, if your industry offers high salary growth through job switching, or if you believe there’s no room for advancement at your current company.
Remember, your career is your responsibility. Whether you negotiate your salary or explore new opportunities, knowing your worth and taking action is the key to moving forward. If asking for a raise doesn’t work out, job hopping might just be the way to go—but don’t forget to weigh all the pros and cons before making your final decision.
Good luck with your decision-making! Whether you stay or go, make sure you’re always moving toward the future you deserve.