With the possibility of a better salary or title, it’s no surprise that job hopping has become a common trend across various industries. Gone are the days when employees stayed with one company for decades, working their way up the ladder in a single, stable environment.
Now, many professionals are more eager to jump ship with the hope of finding bigger and better opportunities. But how does this trend affect their earning potential, especially in a structured field like accounting?
In this blog post, we'll explore how job hopping impacts earning potential. Additionally, job hopping can affect intangibles like networking, skills development, and salary negotiation power. Keep reading to see how job hopping can hinder or benefit CPA salaries and long-term career growth in this field.
When Is Job Hopping Beneficial?
For employees feeling stuck in an earnings rut, changing jobs could lead to a salary bump. Many companies follow a traditional salary model tied to fixed schedules or minimal performance raises.
The problem with this model, however, is that an employee’s salary will always be the baseline number for a raise. By moving to a new company, however, accountants can negotiate a higher starting salary. They could even land at a higher number than they would have received from an annual raise at their current job.
This practice can be particularly beneficial for accountants in the early to mid stages of their careers. Job hopping every two to three years can yield a significant salary increase with a savvy approach to negotiating.
Employees who switch jobs frequently can see around a 10% increase in salary compared to those who remain loyal to one employer. In an industry where certifications such as CPA (Certified Public Accountant) are valuable assets, accountants with diverse experience may find themselves in higher demand. And that can only drive up their earning potential.
Develop New Skill Sets
Another reason to jump into job hopping is to increase the breadth of what you can do. In an accounting role, gaining exposure to a variety of industries, clients, and accounting systems can only benefit your skill sets.
Every new job presents opportunities to develop new skills or refine existing ones. And for accountants, that can mean honing their understanding of financial management, compliance, auditing, and taxation.
Further, accountants can become familiar with different accounting software programs and boost their soft skills. They gain exposure to a range of personalities and unique leadership styles. Absorbing these experiences can result in stronger client interactions and more commanding communication skills. Employers often see accountants who have worked across different sectors as versatile and capable, which can lead to better compensation packages.
By contrast, accountants who stay in the same role for extended periods risk stagnation. While a role may feel comfortable, it may not offer enough challenge. Accountants could miss out on the chance to diversify their skill set, which could limit their long-term salary growth.
Expanding Your Network
One often overlooked advantage of job hopping is the ability to create a bigger network of contacts. Each job change introduces accountants to new clients, managers, and colleagues, which can be beneficial when looking for future job opportunities.
A robust professional network can be a valuable resource for learning about higher-paying roles. Accountants also can take advantage of new professional development courses or mentorships that may not have been available at a previous employer.
Ultimately, in fields like accounting, networking plays a critical role in career advancement. All it takes is one new colleague or acquaintance to alert you to an upcoming job opening, for instance.
Plus employers often prefer candidates who come recommended by a trusted professional in their circle. Building relationships across multiple companies helps accountants position themselves for future roles that offer better compensation.
Negotiating a Better Salary
A better salary isn’t always an automatic consequence of job hopping. You’ll need to use some negotiating tactics to make that happen. Employees would be wise to start comparing CPA salaries across firms with available data to know what they can realistically expect. Employers are often more willing to offer a competitive salary to attract talent from outside the company, which gives job hoppers an advantage.
Alternatively, remaining with one company for a long period could stifle the possibility of a negotiated salary increase.
Even if an accountant excels in their role, they might be limited to the company’s standard pay raise structure. And that typically results in smaller percentage increases. Accountants hoping for a higher salary trajectory may have more luck with job hopping than staying loyal to one company.
Understanding the Risks of Job Hopping
While job hopping can lead to substantial salary growth, it’s not without its risks. Frequent job changes can stamp a red flag on your resume, particularly in a field where stability and trustworthiness are highly valued.
Moreover, potential employers might be concerned about an accountant’s commitment to the company and question whether they’ll stay long enough to justify the investment.
Constantly changing jobs can cause professional development gaps, too. Some workplace-specific skills - like mastering a company’s internal accounting systems or managing long-term client relationships - require time and commitment to develop.
Accountants who move on too quickly may miss out on the deeper experience needed to secure higher-level roles. Rather than ascending to the rank of a senior accountant or finance director, they could plateau instead.
Striking a Balance Between Stability and Growth
Job hopping can be a powerful tool for accountants looking to boost their salaries and build their networks. Even so, accountants don’t want to risk being perceived as disloyal or underqualified by changing jobs too often.
It’s critical to strike a balance between leveraging new opportunities and building long-term career stability. The right strategy - and strong negotiation skills - can pave the way for steady salary growth and valuable professional development
