Should I leave a job for more money?

In today’s skills-short market, Australian companies are using offers of salary increases or spot bonuses to poach top talent.

Although it might be tough to resist the dollar signs when a better offer comes along, a salary alone shouldn't be the main factor when changing roles. Poor work-life balance, a lengthy commute, or uninteresting work won't be fixed by a pay raise.

So when might leaving a job for more money make sense?

Here are four questions to consider before making a decision.

Should I leave a job for more money before speaking with my current employer?

The short answer is no.

In reality, it costs companies a lot – both in resources and money – to replace tenured talent. This means employers are often willing to come to the table to meet the needs of their existing staff.

However, it’s not always that clear-cut.

While it’s worth speaking with your employer about your frustrations and having an open discussion about your pay, it’s crucial you get the timing right.

Waiting until you’ve already started looking for open roles or secured a new position is a bad idea.

Using another offer as leverage to get a pay increase not only signals you as a flight risk to your existing employer, but accepting a new position you don't intend to show up for can taint your reputation.

Word could spread that you wasted a company’s precious time and resources just for the sake of using them as leverage.

Instead, approach your employer early. And backup your query about pay with proof that shows the results you’ve achieved for the company in your time as an employee.

PRO TIP: Where possible, quantify your achievements. A graph showing how you helped increase sales from $2 million to $4 million in one year is far more persuasive than simply saying you’ve helped the company grow profits.

Should I leave a job for more money but the same title and responsibilities?

Again, the short answer is no.

If you’re considering moving companies just for the money, it may not be worthwhile in the long run. The truth is, you may find yourself starting from the bottom rung of an organisation, which is likely to slow down your long-term career progression.

Although that’s not the only consideration. Because remuneration alone doesn’t paint a full picture of your role.

So, when should you consider leaving a job for more money but a similar position?

Here are three good reasons:

1. You’re being underpaid compared to the market rates.
2. Your employer is not prepared to listen to your frustrations about remuneration or willing to negotiate on your salary.
3. You’ve found a new job that has a clear career progression, flexibility, work-life balance, and company culture that exceeds your current position, and while the higher salary is a plus, the role in its entirety is more compelling and could take you further.

I feel underpaid in my current role – what should I do?

Firstly, check the market rates

Are you already being paid fairly for your role, or are your incremental raises not keeping up with the Australian market rates?

But, also consider your current roles and responsibilities compared to other job positions.

If a new role lists extra duties or has more difficult tasks, it might mean signing up for more money and also more responsibilities.

Related: Wondering how your salary compares? Check out our Australian Salary Guide.

Next, make a list of your skills

There’s no point approaching your employer for more money or starting a job hunt unless you can justify that you really deserve more.

Consider the reasons why your current pay should be higher:

• How do you go above and beyond in your daily duties?
• What new skills have you acquired since your last pay increase?
• How have you helped the company achieve big gains in the past year?

Also, consider your existing skill sets - how are they transferable into other roles or in other industries?

For example:

• A background in business development – with skills in planning, developing processes and timelines, and organising a team – would be valuable for a project manager position.
• High attention to detail is just as valuable for a bookkeeper keeping a company’s accounts and financial records in order as it is for a programmer who reads through code to fix any mistakes.

Then, make a list of what you want out of your career and how the current role aligns

Perhaps your career goals have shifted significantly since you began your current position.

Consider factors such as:

• Does your role still offer promising long-term prospects?
• Are you given enough learning and development opportunities?
• Do you enjoy a great work-life balance?
• Does your position continue to challenge you?

Related: Need some help with your career planning? Read our tips on setting and achieving your career goals.

Finally, talk to your employer

Unfortunately, not all companies are in a position to offer higher salaries.

But remember to factor in your entire package – not just the salary. Perhaps your employer can offer additional benefits if they cannot meet your monetary request. Consider if benefits such as more flexible working hours or the option to work from home improve your employee package.

Keep an open mind when you approach your employer. Then use their response to help guide your next steps.

What are some signs I should leave my current role for more money?

While there are particular signs to suggest leaving a current job or company might be a good idea, it can be more difficult to pinpoint why money alone should be your motivator.

Here are some signs to look out for:

• If you’ve checked the market rates and found you’re being under-compensated, it’s worth talking to your employer.
• You genuinely believe you deserve more - but the company is unwilling to meet you halfway.
• Your personal circumstances have changed – you bought a new home or you have a newborn baby coming soon – and you really need a higher salary.
• You found a company and role offering both a higher salary and added benefits. Some workers are nervous about leaving the comfort of a steady job to try something new, even if the rewards are clearly obvious.

Where to from here?

Most of us spend many decades in the workforce, so you deserve to spend your days doing work that is not only meaningful and engaging but pays what you deserve.

If you think the timing is right to leave your job for more money, see what Australian positions are currently available on our job board: