I’ve been with the same firm for three years now, but I’m starting to wonder if my loyalty is costing me. Most of my friends in accounting who switch jobs every year or two are pulling in way higher salaries than I am. Is it better to stick it out for long-term stability, or is job hopping the only real way to get a decent raise these days?

My biggest salary increases were when I jumped. Usually upwards of 20%-30%. I typically jumped every three years. Would do it all over again the same way. No place has treated me well enough as a company to win my loyalty at the sacrifice of my pocketbook.

I have a completely different take than everyone else. In the early days of my career, people left, and in the short run they temporarily made more than me, but in the long run, I did much better. Those short hops left the others as not experts in anything in particular, and in their futures there were unemployment gaps as the market changed, and they were never able to attain as high a level as I did at the firm I stayed at. In public accounting, you eventually become an owner of the firm, and your finances change dramatically. I can’t tell you how many ex-coworkers over the years gave me a call over the years looking for their next opportunity after a layoff or RIF or even company bankruptcy for those who switched to private. I came out significantly ahead, though in those early years I questioned it the same way you are. Now if you aren’t well liked at your firm, if your reviews aren’t glowing and if your clients don’t really view you as the person they need to call, and if you don’t have a niche area you can develop exploit as an expert over the future, this may not be the answer for you. But, when you stick it out in public, the bumps you get at the top, or near the top as other firms and companies start to view you as a rare commodity they would like to obtain, usually wipe out those short term gains your friends made. That was my experience and the advice I would still give.

At three years, you haven’t accumulated enough knowledge to be the important person at a firm you jump too. And, if you switch to a new group or specialty your learning curve takes a detour. You are often one of the first laid off when things get rocky, as they hired you at a premium for your position and you may not have the knowledge base that your coworkers at the same level who haven’t hopped around have. Look at the partner group at your firm - chances are a lot of them are home grown.

Usually those you do change companies every 2-3 years see a bigger jump in their salary vs those who stay at the same company for 10+ years.

Many companies only give around 2-3% merit raises each year, where those who switch every 2-3 years results in an average pay increase of 10% to 20%, with some high-demand sectors seeing even higher jumps of 20-30%.

This "job-hopping" strategy often leads to significantly higher income growth compared to the 3-5% annual raises typical for employees who stay at the same company.
Key Insights on Pay Increases

Target Range: A conservative goal for a job switch is 10%, but 15-20% is common and recommended to justify the risk.

The "Job Hopping" Premium: Over a career, regularly changing jobs can double an employee's lifetime earnings compared to someone who stays put.

Internal vs. External: Internal raises often only keep pace with inflation (~3%), while new employers pay market rates, which are usually much higher.

Factors Affecting the Increase
Industry Demand: Tech, AI, cybersecurity, and healthcare often offer the largest salary bumps (20-30%+).

Current Salary: If you are currently underpaid, you may see a 30%+ increase. If you are already at market rate, the jump might be smaller.

Job Market Strength: During high-demand periods (like 2021-2022), increases were higher; in cooler markets, they might drop toward 5-10%.

Negotiation: The final percentage is heavily dependent on negotiating your offer rather than accepting the first number provided.

I stayed put about as long as you and realized my raises weren’t keeping up either. The biggest jumps I’ve seen came from switching, not waiting.

"Loyalty" is over rated these days. There is a HUGE difference in definitions between "Company's " loyalty" to you" & an Employee's "loyalty" to the company they work for". You are the only one truly looking out for YOUR best interests. If you want a raise, YOU have to make that happen! I wish I had someone tell me that info LONG ago!

I think it’s “business” nature…loyalty means nothing except that you’ll do what you’re asked. The only way to truly keep pace with the market is to leave. Unless your company is known for maintaining salary adjustments…but that’s doubtful

Agree with the comments above, you will make more if you make the switch. I also think it depends what you want to do long term, whether your current firm will help you get there or if you want to gain experience in other areas!