Here's What Happens When You Stay in the Same Job Too Long

When you work for a company you like, staying long term can be tempting. After all, you understand how the business operates, are comfortable with your coworkers, and know how to do your job well. But there are also some financial disadvantages to consider. If you hope to continue increasing your income, you may want to reconsider staying at your current job for a long time and instead prioritize getting a new job with higher income potential.

It can be hard to increase your income

If your goal is to increase your income to prioritize your personal finance goals, it's worthwhile to consider whether your current job will continue to meet your income needs. As you gain more experience in your career, you'll likely want to make more money.

But staying in the same role can impact your ability to increase your income -- which impacts your checking account balance. According to Indeed, salary increases and bonuses may stagnate the longer you stay with an employer. Plus, not every employer offers salary increases or bonuses; even if your employer does, the increases may be minimal.

The ADP March 2023 Pay Insights Report shows that job changers had the most success achieving wage growth. For workers who stayed in their jobs, year-over-year median gains were 6.9%. However, the median pay growth for workers who changed jobs was 14.2%.

What about taking on a new role with the same organization? Limited promotion opportunities may be available within your current company. If limited positions exist, meeting your new income goals could be challenging if you stay with your current employer.

Tips to boost your income potential

If you feel like your chances of making more money at your job are minimal, it may be time for a new strategy. Here are some steps you can take to increase your chances of boosting your income potential as you continue to work your current job:

• Ask for more money: If your employer hasn't offered you a raise recently, you can ask for one. But make sure you do thorough research and come prepared for the conversation. Before you ask for a raise, research salary tends and be able to explain the ways you add value to the company.
• Learn new skills: Learning new skills is never a bad idea. Whether you take on new responsibilities in your current role or explore a new side hustle in your free time, learning new skills can make yourself more marketable to future employers.
• Stay alert for internal opportunities: If you feel stuck in your current role, but have yet to land a new job, consider internal opportunities that may arise. You may be able to gain more experience and boost your income by taking on a new role with your employer.
• Apply for jobs with other companies: You may be able to increase your salary by getting a new job with a new employer. There are other opportunities out there, and some come with a higher paycheck. Research salary data and brush up on your negotiation skills so you're prepared for when you're offered a new job.

Don't give up on your financial goals

If you're unsatisfied with your current salary, don't let your disappointment get you down and don't give up on your financial goals. Your current situation isn't forever. If your current job hinders your ability to reach your financial goals, you might consider seeking other work opportunities that offer better pay.