The data on this is fairly consistent: job switchers earn 15–25% more on average than people who stay in the same role, according to multiple studies over the past decade. The "loyalty premium" — the extra pay you get for staying — has largely disappeared in most industries. In fact, the opposite is often true: long-tenured employees frequently fall behind market rate as companies optimise spend on new hires rather than retention.
But job hopping isn't cost-free. Here's how to think about when it's worth it.
The case for moving
Moving companies is the most reliable way to get a step-change in salary. Internally, most companies have rigid compensation bands and annual increase cycles that cap how much they'll move your pay in a single year. Externally, you can skip bands entirely — a company hiring you doesn't know (or care) about your current band; they're anchoring to what the role is worth to them.
If you're more than 15% below market (check your percentile with our free salary tool), an external move is almost certainly your fastest path to correction.
The case for staying
Continuity has value that doesn't show up in a salary comparison. Domain knowledge, relationships, accumulated trust, faster promotion tracks, and reduced risk all favour staying. If you're on an upward trajectory internally — taking on more responsibility, clearly on track for a promotion — the total return of staying may exceed what you'd get from jumping.
The maths changes if you're stuck. If you've been at the same level for 2+ years with no clear path forward, the promotion isn't coming — and you're paying an opportunity cost while you wait.
The hidden costs of switching
- Onboarding tax. The first 3–6 months in a new role are lower-productivity. You're learning systems, relationships, and context. This has a real cost, even if it's not visible in your salary.
- Vesting cliffs. If you have unvested equity or bonuses, leaving before they vest is a real financial cost. Always calculate your true walk-away number.
- Pension and benefits. UK and European pension contributions, health insurance, and other benefits vary significantly. A higher salary at a company with worse benefits may not actually be a better deal.
- Risk. New jobs carry more risk. Probation periods, cultural mismatches, and "the role wasn't as described" scenarios are real.
A simple framework
Ask three questions: (1) Am I below market rate at my current company, and has internal negotiation not resolved it? (2) Is there a clear external opportunity that pays materially better? (3) Do the hidden costs (vesting, benefits, risk) not outweigh the salary gain?
If yes to all three, moving is probably the right call. If you're not sure about question 1, start there.
Check your market rate in 30 seconds — it's the only objective input you have before deciding.