Pros and Cons of Job Hopping in Tech
Do you have a past of job-hopping or are you considering making your first hop? Normally, this may be frowned upon by future employers, but if you are in tech, it is so common that it’s not nearly the blemish it would be in other industries.
Even though it’s not something to be concerned about with your future tech employment opportunities, there are still a few things to consider.
Pros of Job Hopping in Tech
One of the biggest supporting reasons for job-hopping is the likely salary bump you’ll receive by making the jump. Change is hard and to slick the tracks and encourage you to hop to a new employer, it is very common to receive an offer well above your current pay.
Let’s say you actually enjoy your current projects and your employer but received an offer from a new tech company. You are in a place of power and safety. Even if their offer is more than generous, you can ask for more. Get creative. It can be more vacation days, the ability to work from home, or stock options.
Greater Growth Opportunities
Even though change is hard, challenges are exciting. Not only will you be thrown into a whole new team, but you’ll likely have new projects that will take you out of your comfort zone and possibly reinvigorate your passion for your work.
If you hate your current workload, boss, or employer, then a change of scenery may just be a career-saving move. It’s easy to stay in an unfulfilling or toxic situation, but it’s a risky move. Why waste away when there is a whole world of opportunities where you can be valued and psyched to be a part of a rock star tech team.
Cons of Job Hopping in Tech
Miss Retirement Savings
The biggest one I see, but I never see anyone address is that you may constantly be missing out on the super valuable aspect of retirement accounts. Some employers require you to wait a year before having access to the 401(k) plan. Or they may have a vesting schedule, which only allows you to keep a small percentage of the employer match.
Level Up : What to Do With Your Old 401(k)
The new total compensation package is less than your current employer. Salary and 401(k)’s are not the only parts of your compensation package to weigh. You want to look at the whole picture. Some tech employers may offer some random fringe benefits like a foosball table and beer on tap, but then forgo health insurance and tuition reimbursement.
Risk of the Unknown
Have you ever heard the saying “ a bird in the hand is worth two in the bush”? Basically, you can see the single bird in your hand. You know what it’s about. There are two in a bush, but you don’t know if they are actually better than the one in your hand because you can’t see them. More isn’t always better.
Strength of Network
Do you think you build stronger relationships with someone you’ve spent less than one-year working with or one that you spent three-years working with? Having a strong network is one of those invisible assets that are worth a lot. You don’t know the power of your network until you need them.
Should You Job Hop in Tech?
More money is cool, but it shouldn’t be the sole factor in your decision making. Instead view this important decision from a total quality of life stand-point.
If you feel that you make enough money, but do not know how to maximize your financial situation, please reach out. I enjoy helping tech professionals take their financial confidence through mentorship, coaching, and building strategy guides to make things clear.
Lucas Casarez is a Certified Financial Planner™ Professional serving tech professionals virtually out of Fort Collins, CO