When to Make a Jump

As a CEO and former CHRO,  I am frequently asked about my perspective on when an individual should consider transitioning to a different organization. The decision to make a career change is complex and multifaceted, involving considerations such as job satisfaction, compensation, career potential, change orientation, leadership, and alignment with personal values. 

In today's dynamic work environment, tenure and organizational loyalty expectations are rapidly evolving. For the first time in history, we have five generations coexisting in the workforce, each with distinct views on career loyalty. While some may advocate for frequent job changes every few years, others still value a 40-year run with a single company. Today, the expectation for a minimum tenure in a role is around three years. In any case, a career move presents opportunities and risks that you must carefully evaluate. To help highlight opportunities and mitigate potential risks, I advise assessing the following categories: 

Complacency and Stagnation – If you lack enjoyment, meaning, or motivation in your current role or feel that your position is no longer professionally challenging, it may be time to consider a change. Stagnation will only stifle career growth and diminish job satisfaction.

On the wrong side of change momentum – Frustration and conflict may develop between you and your peers and managers if:

A.    you are attempting to drive change against a leadership team that prioritizes protecting the status quo or 

B.     you are a tenured employee resistant to significant changes driven by new leadership, 

Either way, you may find yourself at odds with the company's direction.

Lack of Sponsorship – Career advancement often hinges on having a political sponsor in addition to solid credentials and performance. Without a sponsor advocating for your growth, you may be overlooked for training and promotional opportunities despite your qualifications and achievements.

Behind or Above Market Compensation – If you have performed well in your role for several years, your compensation should at least match the 50th percentile for market-based rates. External hires often start closer to market rates, and directly recruited employees can expect a "solicitation" premium of 15% or more above typical hiring rates.  Conversely, suppose you are a mid or late-career professional who has enjoyed compounded annual salary increases over time in substantially the same role. In that case, you may be above current market rates and have more difficulty getting an increase or even retaining the current compensation upon a move. 

Missing the Promotion Window – If you are in a role where the upper echelons are occupied by late-career professionals who are not retiring or moving up, your advancement opportunities may be blocked. Consider whether you risk missing out on meaningful career progression due to these bottlenecks. 

Who You Work for Matters - As the adage goes, people leave managers, not companies. Not respecting or trusting your manager will negatively impact your overall experience and can be a compelling reason to seek a change. 

Skills and Potential Assessment- If you assess your potential and performance higher than your manager or the organization does, there will be a disconnect in compensation and future career opportunities within the company.

Values and Direction - Now, more than ever, employees seek to work for organizations that align with their values, such as diversity and inclusion, social justice, and flexible work arrangements. A significant misalignment between your values and the organizational culture can result in dissatisfaction and a lack of engagement.

If, after assessing yourself in those eight categories, you believe you should entertain a move, I recommend the following: 

Discuss your performance, compensation, career potential, and any disagreements regarding future organizational changes with your manager. These conversations can help confirm your assessment and minimize surprises. If your manager does not want to have those discussions or is evasive, that adds to your assessment. 

Don't make a move only for compensation, as that rarely works out. Make compensation one factor against a broader decision-making criterion. 

Finally, make sure you are running to something versus running from something. Don't allow your current frustration to drive your decision-making process. Every organization has positive and constructive aspects, and your goal should be to capture more positive aspects that are important to you in a new organization.

Navigating Risks in the Job Market 

In addition to assessing your readiness to make a move, it's important to acknowledge that the current job market can present significant risks that may influence your decision. Economic instability, industry-specific downturns, or shifts in the labor market can create uncertainties. These factors may result in fewer opportunities, increased competition for available positions, and longer periods of job searching. It's crucial to conduct thorough research on the job market trends within your industry and weigh these risks against the potential benefits of a career change. Balancing your desire for professional growth with a realistic understanding of market conditions will help you make a more informed decision. 

By carefully evaluating these factors and having honest conversations with yourself and your manager, you can make a well-informed decision about whether a move is right for you. Remember, the goal is to enhance your professional journey by seeking opportunities that foster growth, satisfaction, and alignment with your values.