Is it ok to switch a job just after getting a salary increase?

Question

I've spent a decent amount of time with my current company (more than a year), and I'm looking for a job change as things are now at a saturation point (learning wise).

My increment is due after a month and I am getting some interview calls from decent companies, but I am regretting this time as it's only a month more and I can certainly negotiate a better offer once I'm making more at my current job.

Is it ok to take the increase in pay, and then immediately begin looking and interviewing for new jobs?

Answer 1

If you're pretty much guaranteed of the increment after a month, then any company hiring you now should take that into account in the offer they make you. If an opportunity presents itself, then go for it, but make this point to the recruitment consultant or HR department.

Depending on your market, the process may well take more than a month to reach completion anyway, but it's best to make anyone looking at you aware of the likely uptick up front in my opinion.

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Another approach, of course, is to talk to them about your feeling of lack of opportunity for further learning and growth. If you have an increment pending, and have had a good appraisal, then they obviously do value you - you might need to suggest to them ways that show you that fact effectively, like a new opportunity internally, some training courses, that sort of thing.

The question to ask yourself is this: is it your current role or the company that you feel is holding you back?

Answer 2

If you turn the question around slightly and ask:

Is it OK to make an employee redundant just after they've had their appraisal?

and consider that the answer virtually all employers would give:

Yes

Then you can see that it is OK. They wouldn't have any qualms about letting you go if the business changed so that it became necessary.

While loyalty to a company is nice - you should always remember that (except for the very few truly ethical companies out there) the company will show no loyalty to you. You should have respect for the company, but that doesn't extend to foregoing what's due to you.

It should be noted that in the current (2012) economic climate in the UK an increasing number of firms are keeping staff on despite lack of work (reducing hours, cutting salary, etc.) as they know that when the upturn happens they'll need the skilled and trained staff at short notice.

Answer 3

Yes it is OK to switch after an appraisal. Many people, at least when the economy was good, would leave if they didn't feel that they received a large enough raise. The fact they gave you an increase in pay doesn't require you to stay for another year.

If the appraisal will result in a bonus, then you would be wise to stay long enough to get the bonus. They are rewarding you for your hard work.

If you are planning on leaving you should make sure that you are not leaving any money or benefits on the table. Some companies give bonuses, or lump sum vacation on a set schedule.

Also make sure that if the company paid for you to move, or for part of your schooling that you have met the minimum amount of time you agreed to stay. Some companies will want full or partial payback if you don't stay the required number of years.

Once you receive the increase in salary, then use the new salary as the baseline for comparison. You should let potential employers know the new salary if they want to know what you currently earn. But be careful about estimating future salary, especially if this is your first review with the company. Unless you have a contract, there is no guaranteed minimum increase. So don't tell a potential employer that your current salary is X% higher, or you might price yourself out of a job.

Answer 4

My increment is due after a month and I am getting some interview calls from decent companies, but I am regretting this time as it's only a month more and I can certainly negotiate a better offer once I'm making more at my current job.

No.

You can always negotiate a better offer than your current job, regardless of what you're currently making.

How?

Prove your value. Companies don't create and fund jobs out of the goodness of their hearts. They do it because they need something done.

Scenario

Let's say that you're currently working for $36,000/year at Acme, Inc., because it was your first year out of University and you didn't know any better.

You research Frobozz Corp and discover that you can produce $500,000 worth of profit per year or save $400,000 worth of expenses per year. You present your plan to the Frobozz hiring manager and get an offer.

It is entirely reasonable to demand a salary of $300,000 per year.

"B-b-but," you say, "you were only making $36k before. That's not fair!"

You're right. It isn't far: it is business. Acme, inc's estimation of your value has nothing to do with your value to Frobozz, none at all: they're different companies, you're doing different projects, and they have different products.

Answer 5

Sure, it's fine to leave just after they've raised your salary. Remember, they've just raised your rate, they have not paid you a lump sum that they will lose if you leave. You're leaving, so they won't even have to pay out much money to you at that higher rate.

If you respect the company and they are truly interested in why you are leaving, you are of course welcome to tell them honestly whether you are leaving because you are dissatisfied with the pay or whether it's for another reason.

There is another reason that the company might be unhappy with you leaving, though: usually much of your first year will be spent learning, and subsequent years tend to be considerably more productive than the first one. They may feel that they wasted the money to train someone who then decided to move on to greener pastures.

However, that's just the company's perspective. They don't own you. And if they really want you, then they can offer enough money to make it worth it to you to stay.

I wouldn't worry too much about what your soon-to-be-former employer thinks of your leaving unless one of the following applies:

• You need a good recommendation from someone there or they have influence on other employers that you might want to work for. In other words, if you think it might affect your professional reputation.
• You might want to go back to work for them someday, or partner with them in some other way (e.g. as a consultant). If you live in a small-ish city like me, you can't afford to be angering people you might have to do business with in the future.
• You genuinely like them on a personal level (usually applies mostly to small employers).

Keep in mind that most companies will fire you without a second thought if they think it makes business sense to do so. You are in business to serve your own interests just as much as they are to serve theirs. If you feel your interests no longer coincide with theirs, then it is perfectly reasonable to consider leaving.

Answer 6

It is absolutely Ok to wait for a salary increment before looking for a new job, at least in India.

I have seen most of our senior employees switching after getting appraisals. The reason behind that is

• In india it really matters how much you made in your previous job. Like if you are appearing for an interview at present, you would be telling them that you made 30K per month. After a month, you could be telling them you made 35K. That will create a lot of difference.
• The second reason I found was, after getting an appraisal they got a reason to leave the job. In our company, the increment of every employee varies. When an employee gets small increment, he has a reason to ask for better increment or even to start looking for another job.

I would prefer to wait for the increment before looking for a new job.