Leaving your current employer to take a job with a new company that pays more isn’t a novel concept. Sure, you can benefit from an immediate increase to your income when you change companies. But, if you play your cards right, you can also make more money in the months and years to come.
Make More Money Today and Tomorrow
Over the course of my career I’ve changed companies many times. Each time I leveraged my new job to make more money (and accelerate our path to financial independence!). But several years ago I accidentally discovered a way to make significantly more money when I changed companies.
I call this strategy the Triple Payout, and it can pay off in more ways than you might expect. Here’s how…
Single Payout: Increase Your Income Immediately
This is the most obvious benefit of changing companies. With some decent negotiation, you should be able to increase your income immediately by at least 10-15% when you change companies.
Double Payout: Negotiate Your Next Promotion
Don’t be short sighted and only consider the immediate pay increase when you change companies. Instead, negotiate your next promotion.
Many individuals try to negotiate a bigger job title when changing companies. But, if your desire is to maximize your earnings – do NOT do this. I repeat – do NOT negotiate a bigger job title. Instead, agree to the offered job title and ask your potential new boss if he/she would consider reviewing your candidacy for a promotion within 12-18 months.
This does two things for you:
- It shows your new manager that you’re hungry to advance and sends a signal that you are a high potential employee. Both are key factors that will work in your favor to make more money!
- It sets you up to gain a second pay increase in a relatively short period of time. You still need to work hard and deliver results, but you now have clear line of sight to how your efforts can payoff with a promotion and pay increase.
Triple Payout: Increase Your Value to Future Employers
By changing companies and setting yourself up for a forthcoming promotion, you’ve just increased your value to future employers. Your resume not only shows you’re adaptable (working at more than one company) but it also shows career advancement.
Stay at your new company for 2-3 years and you’ll be able to rinse and repeat the Triple Payout.
The Triple Payout in Action
I’ve personally deployed the Triple Payout twice in my career. The first time was about 12 years ago. And it was completely by accident that it worked out the way it did. However, the second time I maneuvered a triple payout was two years ago, and this time it was entirely on purpose. And the payoff both times was huge! Let me explain…
The Accidental Payout
Back in 2005 I began looking for a new job. I wanted to advance my career and make more money. Shortly after interviewing for a director-level position with a new company, I was super excited to receive a job offer that exceeded my income expectations – 20% pay raise!
But, there was a catch. The job title had been changed from director to manager. It felt like a bait and switch and I was incredibly disappointed.
I went back to the hiring manager to discuss the job title, but she wouldn’t budge. Instead, she offered to work with me on a plan to develop into a director-level position over time.
I’m not going to lie; I hated her proposal. I coveted a director title! Although I had some serious reservations, I decided the pay increase was worth it and accepted the position with the hope that she would fulfill her promise.
As fate would have it, after spending her entire 25+ year career with the company, my new manager quit about 9 months after she hired me. Leaving me without a path to that promotion! At least that’s what I initially thought…
A few months after her replacement was hired, I made my new boss aware of the agreement his predecessor had made me with me when I was hired. In response, and much to my surprise, he immediately worked with HR to push my promotion forward.
One year after I was initially hired with a 20% pay increase, I was promoted to director and received another big bump in salary!
In total, I grew my income 40% in 12 months. This would never have happened if I had solely fixated on negotiating my immediate job offer and title.
A lesson that I took with me when I changed employers again 10 years later.
The Purposeful Payout
Fast forward to 2015. I was happily working for a mid-size technology company when a new opportunity presented itself. It was a senior-level role at a much larger, global technology company. After months of interviews, I was finally offered the position.
The financials of the job offer were solid – 15% pay increase. However, the job title/grade was less desirable. This time I knew exactly what to do. Repeat the Triple Payout!
My number one priority was to make as much money as possible (so I could achieve financial freedom as quickly as possible!). The job title was less important to me, BUT my future employer didn’t know this. So, I made the job title a key part of my acceptance terms.
Rather than negotiate a bigger job title, I indicated my strong desire to advance and asked that I be considered for a promotion based on my performance in the coming 12-18 months. My new boss agreed.
And as it turned out, 18 months after starting at my new company, I did get that promotion and a second big pay raise. In total, I increased my annual earnings by more than 40% in less than two years. Success!
Not a Slam Dunk, But Nothing to Lose
Now, I’ll admit that deploying the Triple Payout when changing companies isn’t a sure thing. There’s no guarantee you’ll get promoted or get that second bump in pay. Your new boss may leave the company or choose not to follow through with a promotion. But what do you have to lose?
If you want to make more money at work, change companies and put the Triple Payout in motion. Forgo the bigger title. Instead, negotiate a near-term promotion opportunity into your job offer. Best case, you get two healthy pay raises in less than two years and increase your market value. Worst case, you still make more money at a new company. That’s better than nothing!