Why Australian workers are losing out on pay rises, promotions and it’s time to move to a new job

Too many Australians are stuck in a rut at work and are missing out on more lucrative pay packet. Here’s how you can change that.

Aussie workers are sacrificing pay and promotion by staying in the same job for too long, an expert warns.

Too many Australians are stagnating in their current role and missing out on more lucrative pay as a result, according to career coach Leah Lambart.

These “job clingers’’ could make tens of thousands of dollars more by changing to a new role at least every four years, Lambart says.

“If you’re a junior person and you move to another company, where your skills are desired, you might be able to step up (your salary) by 10 grand – for some people (in more senior positions), it might be $50,000,’’ Lambart, founder of Relaunch Me, says.

“If you want to be earning more money and get more opportunities longer term, then you need to be thinking about what’s next after about four years (in your present role).’’

Sweet spot

Lambart says changing jobs every two to four years, whether it be within the same company or a new one, will reap the biggest salary rewards.

Staying in the same role past five years will likely only achieve a CPI-aligned pay increase – if any at all – with workers considered ``stale’’ and overlooked for promotion by their manager, she says.

“You see these job clingers that have been in the same job for the same company for a long time and people start to think there must be a reason why they haven’t been promoted in all that time,’’ Lambart says.

“It (a long time spent in the same role) certainly is not a good look on your resume.’’

On the flip side, leaving a company after less than two years is also ill-advised, with Lambart

warning prospective employers will question the commitment of workers and whether investing in their future development is worthwhile.

“Job hopping, particularly if you are moving from (the current role to a new one that’s on) the same level, and you haven’t stepped up, is definitely a red flag for recruiters,’’ Lambart says.

“Recruiters definitely want to see tenure with an organisation – although that doesn’t necessarily need to be in the same job.’’

Executive-level workers may have more leeway to stay longer without financial penalty, she

says, if they are overseeing long-term projects that are not yet complete.

Robert Half director Andrew Brushfield. Picture: Supplied

Overlooking mistakes

Andrew Brushfield, director at recruiter Robert Half, says while a couple of quick job changes

can be overlooked, a succession of rapid moves – unless they are contract positions – is often

cause for alarm.

“A lot of people make a mistake in their career around choosing the wrong employer (and need to move on quickly) so if it’s happened once or twice that’s ok. Employers are forgiving,’’ he says.

“But if it happens four or five times (in someone’s employment history) then that becomes

problematic – it’s hard to convince a prospective employer that it’s not you (causing the issue).’’

He says fears of a recession, combined with cost-of-living pressures, have made workers

cautious about moving jobs and willing to stay in the same role longer than they perhaps should.

Counteroffers are also playing a part, with new Robert Half research revealing more workers are now accepting higher pay to remain with their current employer rather than move elsewhere.

“The important thing about staying in a job is that you are (continually) learning,’’ Brushfield

says.

“We all know people that stay in a job too long and they stagnate, they get lazy and their

earnings probably drop away because they are bored.

“But if people are happy and fulfilled, staying in a job is not a bad thing, so long as they are

learning and getting new skills.

“Even if your job (title) stays the same, you might get project work or inherit a new part of the business and you can show your role has evolved.’’

Anuradha Dunuhappawa who has changed jobs. Picture: Supplied

`No smooth ride’

Anuradha Dunuhappawa has changed jobs 13 times over the past 17 years and is currently

looking for new work again.

His longest role to date ended after five years but he has also accepted contract positions that

lasted just three months.

The Melbourne-based software engineering manager says the experience he has gained by

regularly moving roles has seen him climb the career ladder more quickly, significantly boosting his income along the way.

“Throughout each journey (new role), I have learned quite a lot of different software programs,’’ Dunuhappawa says.

“It hasn’t always been a smooth ride. The effort I have had to put in was a lot – when you’re

(frequently) changing jobs you have to learn the systems for one company and then when you

move you have to learn all over again.

“That’s a lot of effort if you’re not ready to do that – but it’s been good for me and I don’t regret it.’’

Time to move on

Six signs you need to change jobs:

1. You haven’t had a promotion for years and seem to be overlooked for internal

opportunities

2. You are paid considerably less than the market rate for your experience and skillset

3. Your career development has stalled and you are no longer learning

4. Your values are no longer aligned with the values of your employer

5. You can’t bear the thought of being in your manager’s role and see no career

direction internally

6. You dream of working in a new role

Source: Leah Lambart.

Originally published as Why Australian workers are losing out on pay rises, promotions and it’s time to move to a new job