When should I stay for a promotion vs. switching jobs in 2025?

Should You Stay for a Promotion or Switch Jobs in 2025?

Navigating career decisions can be challenging, especially in a rapidly changing job market. As we step into 2025, professionals are faced with a unique set of circumstances that make the decision to stay for a promotion or switch jobs more complex than ever. The landscape has shifted so that the financial benefits of switching jobs—a concept known as the "job-hopping premium💡 Definition:The amount you pay (monthly, quarterly, or annually) to maintain active insurance coverage."—are now almost non-existent. Here's a closer look at when staying put might be the better option and when a job switch could still make sense.

The Financial Landscape of 2025

Shrinking Wage Premiums

Historically, switching jobs often came with a significant salary bump. In 2022 and 2023, job switchers enjoyed raises of 7.7% or more compared to those who stayed in their roles. However, as of early 2025, this premium has shrunk drastically. Job switchers now see a median annual pay increase of about 4.8%, while those who stay see a nearly identical increase of 4.6%. This narrowing gap suggests that the financial incentive to switch jobs has diminished significantly.

Promotion Rates and Job Openings

In addition to the reduced wage premiums, the rate of promotions has also declined. In 2025, only about 10% of workers receive a title bump with a raise of at least 5%, down from 14.5% in mid-2022. Furthermore, job openings have decreased from over 11 million in 2022 to around 7.4 million by mid-2025. This reduction in opportunities further complicates the decision to switch jobs.

Weighing Career Growth and Stability

Staying for a Promotion

Staying for a promotion can offer several advantages:

• Continuity of Benefits: Remaining with your current employer allows for uninterrupted benefits, including health insurance and retirement💡 Definition:Retirement is the planned cessation of work, allowing you to enjoy life without financial stress. contributions.
• Lower Risk: Staying reduces the risk associated with new job probationary periods and potential mismatches with company culture.
• Potential for Long-Term Growth: Internal promotions can lead to steady career progression and skill development within a familiar environment.

Switching Jobs

While the financial perks of switching jobs have diminished, there are still non-monetary reasons to consider a move:

• Career Pivoting: If you're looking to change industries or roles, switching jobs might be necessary.
• Work-Life Balance: A new position might offer better hours or a more favorable work-life balance.
• Location and Remote Work: Opportunities for remote work or relocation can be a significant factor for some professionals.

Real-World Examples

Consider a professional working in the tech industry. In the past, a job switch might have brought a 10-15% raise. Now, they face a raise of about 4.8% for switching versus 4.6% for staying. Given this small difference, pursuing a promotion internally becomes more appealing, especially if a 10-20% raise is likely within two years.

In contrast, a marketing professional who values work-life balance may choose to switch jobs for better flexibility despite the marginal pay increase. This underscores the importance of weighing personal priorities against financial incentives.

Common Mistakes and Considerations

• Overlooking Non-Monetary Factors: It's crucial to consider job satisfaction, company culture, and career growth potential in addition to salary.
• Ignoring Economic Uncertainty💡 Definition:Risk is the chance of losing money on an investment, which helps you assess potential returns.: With high interest rates and a cooling labor market, job switching can be riskier and may not result in the expected financial gain.
• Industry-Specific Trends: Some sectors, such as tech, are experiencing wage stagnation, making promotions within the same company potentially more rewarding than switching.

Bottom Line

In 2025, the decision to stay for a promotion versus switching jobs hinges on more than just potential salary increases. With the job-hopping premium nearly disappearing, staying put often provides comparable financial benefits, coupled with greater stability and security💡 Definition:Collateral is an asset pledged as security for a loan, reducing lender risk and enabling easier borrowing.. However, personal goals and non-financial factors should play a significant role in your decision-making process.

Ultimately, carefully evaluate the likelihood and timing of a potential promotion, assess your current job satisfaction, and consider the broader economic climate before making your choice. Whether you decide to stay or go, aligning your decision with your long-term career aspirations is key.