Changing jobs can shake up your professional journey. It’s like taking a leap of faith into new opportunities, paving the way for personal growth and boosting your bank account. In Singapore’s bustling job market, it’s worth considering potential salary changes after switching jobs. Learning how to ensure you’re getting fairly compensated is crucial.
This article delves into salary bumps when changing jobs in Singapore. Whether planning a move or prepping for the future, understanding the ins and outs is key. Explore typical salary increases, influencing factors, and tips to maximise earnings.
The typical salary increase from job change in Singapore
In Singapore, changing jobs can also lead to a substantial salary increase. Average job hoppers in the country can expect an average salary increase of 5% to 20%. This is due to the competitive job market, where companies are willing to offer higher salaries to attract top talents. A more significant jump is possible, especially if your current salary falls below the market average for your position.
On top of that, it’s important to note that the salary increase you can expect will depend on several factors, such as your industry, job level, and negotiation skills. Let’s explore those factors!
Factors influencing salary increments
1. Industry
One crucial factor is the industry and market rate. Industries with high talent demand, such as Tech and Fintech, typically offer higher salaries closer to or above the market rate. In contrast, established industries might have lower average raises. Understanding the market rate for your desired role within a particular location is essential. In Singapore, resources such as salary benchmarking websites can help you accurately determine the market rate for your target position.
2. Your experience and skills
Another factor that affects salary increment when changing jobs is your experience, skills, and market rate. When highlighting your qualifications during the interview, connect them to the market rate. Demonstrate how your skills and experience position you competitively within the market and justify a salary increase that aligns with your value. If your skills and expertise are exceptional, you can leverage market data to argue for a raise closer to the market average, even in a lower-demand sector.
Also, highlighting your unique value proposition, such as future growth, expansion of skills, and how it aligns with the company’s goals, can strengthen your negotiation for a higher salary.
3. New role vs. current role
Another essential factor to consider is the new role versus your current role and market rate. For significant jumps in responsibility, transitioning to a new industry, or career advancement, aim for a raise that reflects the market rate for the new role.
Research the market rate for your target position and use it as a negotiation point. The market rate can vary slightly for similar roles depending on company size, location, and specific requirements. By researching the market rate, you can understand the typical salary range and negotiate for a raise that positions you competitively within that range.
4. Negotiation skills
Strong negotiation skills are crucial for maximising your salary increase. Researching salary benchmarks, confidently presenting your value proposition, and being prepared to counter initial offers can make a significant difference in your final compensation package.
5. Company profitability
It’s also essential to consider the company’s compensation philosophy and budget. Some companies have a set salary budget for each position, limiting their ability to offer higher salaries. Others might have more flexible compensation policies and offer more significant salary increments. Understanding the company’s compensation philosophy and budget can help you manage your expectations and negotiate effectively.
Ultimately, several factors can affect salary increment when changing jobs in Singapore. Understanding the market rate, your experience and skills, the new role versus your current role, and the company’s compensation philosophy and budget can help you negotiate effectively and secure a salary increment that aligns with your value.
Additional tips to maximise your salary increase
Maximising your salary increase is an essential part of your career growth. You can follow additional tips to ensure you get the best possible pay for your skills and experience.
Evaluate your skills
Before negotiating your salary, take a step back and evaluate your skills. Are you up to date with the latest industry trends and advancements? Have you taken courses or certifications to boost your knowledge and expertise? These factors can significantly impact your salary negotiation.
If you’ve invested time and effort in developing your skills, make sure you highlight them during the negotiation process. Employers value employees who continuously seek to improve their skills and bring additional value to the company.
Timing is everything
Negotiating your salary at the right time can make all the difference. Make sure you bring the topic up during your annual performance review or when you’ve demonstrated significant contributions to the company.
If you’ve received a new job offer, don’t hesitate to negotiate your salary before accepting it. You’re in a stronger position to negotiate before you accept the job, and once you’re hired, it can be harder to negotiate a salary increase.
Leverage your network
Networking is vital in any industry. Use your connections to research salary benchmarks and learn about the company’s compensation practices. Reach out to former colleagues or industry peers to gain insights into their earnings.
You can also use your network for mentorship and guidance on negotiating your salary. They can provide you with valuable information and support during the process.
Be prepared to walk away
Negotiating your salary can be emotional and stressful. It’s essential to stay objective and be prepared to walk away if the negotiation doesn’t go according to plan.
If you’ve done your research and know your worth, you can confidently hold firm on your salary expectations. Walking away shows that you value your skills and contributions and won’t settle for less.
Negotiate other benefits
Remember that the total compensation package is not only about the base salary. Consider other benefits that can contribute to your financial well-being, such as health insurance, retirement plans, bonus potential, and training opportunities.
You can negotiate these benefits just as you would your salary. For example, suppose the base salary doesn’t meet your expectations. In that case, you can negotiate a higher bonus potential, additional paid time off, or training budgets.
All in all, maximising your salary increase requires preparation, research, and confidence. By following these additional tips, you can get the best possible pay for your skills and experience. Remember, your worth should be reflected in your salary, and negotiating the best deal is critical to your financial success and career growth.
In conclusion, changing jobs in Singapore can lead to significant salary increases, ranging from 5% to 20%, depending on factors such as industry, experience, skills, negotiation skills, and company profitability. Understanding the market rate for your target position and leveraging your unique value proposition during the negotiation process to maximise your earnings is crucial.
Additionally, evaluating your skills and investing time and effort in developing them can boost your salary negotiation. Singapore’s competitive job market provides ample opportunities for career growth, and by understanding the ins and outs of salary increments, you can ensure you are fairly compensated for your hard work and dedication.
With the right approach, changing jobs can lead to personal and financial growth and take one’s professional journey to new heights.
