It often comes with a pay raise, which is always good. It can represent a boost in responsibility, pushing your career forward.
But here’s a question few have asked—is a promotion the best way to boost your income?
Let’s do the math.
The average income boost from a raise is 3%.¹ If you earn $60,000 per year, then you can expect a raise to give you an annual boost of $1,800. That’s $150 per month.
Depending on your situation, that could make a huge difference for your financial picture. But it pales in comparison to other income-boosting strategies. For instance, changing jobs can boost your salary by 14.8%.² The average annual income boost from starting a business is $14,705.³
Suddenly, 3% doesn’t seem all that impressive!
Again, this isn’t to detract from getting a promotion. It’s a testament to your work ethic and grit.
But if your entire career arc hinges on landing one promotion after another, you may need a better strategy.
¹ “What to Expect from an Average Promotion Raise,” Indeed.com, Feb 22, 2021, https://www.indeed.com/career-advice/pay-salary/average-promotion-raise
² “Average Salary Increase When Changing Jobs Statistics ,” Chris Kolmar, Zippia, Dec 28, 2021, https://www.zippia.com/advice/average-salary-increase-when-changing-jobs/
³ “STUDY: Millions of Americans have a ‘side hustle’ to boost their incomes and pursue their passions,” Vista Newsroom, Aug 1, 2019, https://news.vistaprint.com/side-hustle-study-us