3 Misunderstandings When Changing Jobs That Can Reduce Your Income

In the survey by The Conference Board, up to 62% of employees expressed concern that their incoming income might not keep up with inflation. Under the pressure of earning money, employees become more anxious about their current salaries, and tend to seek environments willing to offer them more. However, jumping is easy but landing on lush or dry land, you should understand more about the overall labor market situation. 

Job hopping or promotion: which offers a high salary increase? 

Upon hearing from friends that: “The more you try job-hopping, the higher the chances of a salary increase”, Mong Diep (25 years old, Ho Chi Minh City) left her position as a content creator to find new opportunities. 3 weeks after quitting, she realized she had made a hasty decision. 

“There are very few open positions. Furthermore, positions with a better compensation than my previous one are even rarer. When I changed jobs, I expected a 10-20% salary increase. However, I had to accept an offer with 10% decrease from my previous salary. On one hand, it was the best possible offer, on the other hand I couldn’t afford to remain unemployed,” Mong Diep reluctantly shared. 

Due to a lack of market research before making decisions, many employees fall into the psychological trap of “The grass is always greener on the other side,” assuming that the market always has companies willing to generously increase salaries. The Talentnet – Mercer 2023 Total Remuneration Survey, with data from over 500,000 employees and more than 600 businesses across Vietnam, reveals that business budgets for salary increases to attract talent are currently insignificant. 

Accordingly, in the first 6 months of 2023, on average, businesses only increase salaries by 14% when recruiting new people at the Management Level, no increase for the Professional Level group, or even a 9% decrease in salary rate for the employee group (Para-professional Level). For the employee group, the decreasing salary increase rate shows that the market is full of inexperienced candidates and businesses do not have many difficulties finding the talent they need. 

Interestingly, in the case of promotions, employees’ salaries increased by an average of 18%, while specialists and managers saw an increase of up to 24%. 

Paradox: Gen Z quits their jobs just a few months before a promotion. 

Job hopping, once frowned upon by recruiters, has gradually become an indispensable part of the modern workforce. But this choice is gradually becoming an indispensable part of modern employees when, in addition to salary and position, they also prioritize work experience and finding passion. According to a survey by the U.S. Bureau of Labor Statistics, today’s employees typically change careers about 12 times throughout their careers. 

Therefore, if in the past, a detailed profile of position and work experience was a huge “red flag” in the eyes of employers, now, it can be a powerful demonstration of the candidate’s adaptability. However, if what motivates you to change jobs is a promotion opportunity, consider carefully. 

According to a survey by Talentnet, the average time for employees from other generations to get promoted is 3 years, but for Gen Z, it’s only about 2 years. The paradox is that Gen Z employees often quit after just… 1.7 years. 

According to the “Workforce Confidence Index” survey launched by LinkedIn and the “ Cigna 360° Well-being Survey”, Gen Z’s reasons for leaving work often revolve around: salary; incompatibility of work with personal values; exhaustion and stress at work… But there is also an objective reason that Gen Z learns faster and needs a new environment to develop while the traditional businesses cannot meet the requirements. Is quitting your job just 3 to 4 months before the threshold of promotion a reasonable decision? 

According to Dr. Talya N. Bauer from the Society for Human Resource Management (SHRM), 3 months is the minimum time for employees to adapt to a new environment. This means that if Gen Z employees switch jobs, they may waste 1.7 years of experience at their old company and spend an additional 3 to 4 months patiently developing skills, adding up to 3 to 4 months more to ensure the promotion goal is achieved. The decision to change jobs carries significantly more risk. 

Knowing English is no longer an advantage? 

From 2021 to 2023, according to the survey, the number of workforces in the translation industry decreased by 18%. The reason is that the foreign language proficiency (especially English) of employees is increasing, combined with the improvement of global translation technologies, leading to a decrease in the need to recruit employees in developing countries in these positions. 

In recruitment conditions, businesses prioritize Vietnamese candidates with qualifications, experience, and proficiency in their native language. The data indicates that employment opportunities remain open for candidates with the ability to use languages other than English. 

But with the rise of artificial intelligence, employees need to expand their skill sets, not relying solely on foreign language expertise. The more diverse a candidate’s skills are, especially skills that AI cannot replace, the more they will maintain a strong foothold in the competitive human resources market. 

What are some methods to help you make more accurate work decisions? 

Ms. Nguyen Thi Quynh Phuong, Director of HR Consulting Business of Talentnet Corporation, said that share 3 methods to help employees make more accurate decisions when considering changing jobs. 

Understand the current salary landscape for your position. 

You can find out the salary of your current position through chatting with colleagues and friends in the same industry; reference reputable salary, bonus, and benefits reports, and compare with the salary levels in job descriptions posted on recruitment websites. From there, determine whether the current salary is higher or lower than the general level. 

Discuss expectations with your superiors. 

The simplest way to know if you have a chance for a salary increase or promotion is to ask your manager. This way, you can also clearly know the expectations of your superiors, or the skills that need to be improved before an important move. 

Learn about the market you need to know how to deal. 

Regularly monitor job postings to equip yourself with criteria that are currently in high demand in the market. Being aware of these criteria will give you a significant advantage in negotiating benefits with potential employers in the future. 

“After all, when it comes to salaries and bonuses, every decision is important. So don’t just rely on intuition. The more information you have to support your decision, the more likely you are making the right choice,“ Ms. Quynh Phuong concluded.