Actually I wouldn't think that job switch is an appropriate pair with the word increment, thus the inverted comma. However, the nature is similar. I am referring to the incentives that one is looking for via the two methods. Salary is always a sensitive issue unless with your close friends, which I prefer not to pry either. I mean I'm willing to share if you ask me, but I do not see the need to know about my close friends'.
So.. increment. I would think it will be different across different industries and profiles of companies, and of course individual performance.
Factors to consider when talking about increment:
1. MNC/SME
2. Industry
3. Individual performance
4. Base salary
5. Unforeseen circumstances
Base salary affects not only on the product of percentage point, i.e. 10% increment of $3000 is $300 as compared to 10% increment of $30000 is $3000. But it also affects the 'room for improvement'? I remembered my ex-colleague saying that after her annual appraisal and review with team leader, her increment was a good one but the outcome was not really satisfying due to low base. In another instance, another ex-colleague got an increment of 10% while the other colleague got about 4%. It was understood that the colleague who got the 10% had a bigger percentage point as her base is really low as compared to the other one. Apparently a new benchmark on pay package was revised by a consultant, a new for the company. Hmm I would say their performance are similar, there isn't any thing stellar that can be done in that year. So, the consultant coming into the picture is really point 5 - unforeseen circumstances.
The information that I gathered from the forum are just ball park figures for average performers. I can't testify how much truth there is to it. I haven't experienced any real increment or sorts yet. So, typically annual increment can range from 3-5% for average companies (I don't know what is average) and even slightly more MNCs. Promotion increment 4-15%.
So that was increment for retention. Incentives for continuing employment. Then I read about the job switch. Typically people are looking for 10-20% increment from their last drawn via this method.
I would think that increment by job switch kicks in as an almost last resort method when the employee reaches a state of saturation, in terms of job satisfaction, compensation and benefits. Alright, if I have been working in a company for say 10 years, upgraded myself in terms of education and experience, able to take on bigger tasks but is not recognised, and pay becomes stagnant due to salary cap, depleting job satisfaction no new challenges, then perhaps look for a job switch. But ultimately this is a pretty dire state to reach in employment, and I would seek to have a discussion with my superior prior to hunting for a new job.
But, won't there be a bottle neck if you keep jumping ship every one or two years? in that one or two years, how much more experience would you have accumulated to command that increment? Therefore my assumption is that employees who fall into this category will continue to jump ship until they reach a destination where they feel the pay commensurate their experience and ability, and stay on till they are better qualified.
What is your take? Isn't it so tiring to look for new job over and over again? I don't like this process, or I would say I'm experiencing high job satisfaction still. I feel happy to be going into office everyday no matter how it will turnout at the end of day, my company's products are just like mine, i am proud to be part of us. Looking forward to my 20, 30 years long service award and probably a one-year sabbatical after that.
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