In the last several months, millions of people have chosen to leave their jobs for varying reasons. According to new data by Consumer Affairs, it’s paying off for them in a big way.
The company surveyed 1,000 respondents who left their jobs for greener pastures, and found that less than half of the survey’s participants quitting their jobs felt financially prepared for the move – but, 60% of people who left their job came out ahead financially. Even more interestingly, only 6% ended up in a worse position.
Other key findings include a deep dive of exactly how people took the plunge, and what made them feel financially secure enough to leave their jobs.
Although experts say that the average saving an American worker needs to feel comfortable quitting their job is $33,424 2 in 5 people surveyed said they had less than $1,000 saved prior to turning in their pink slip. Those who left with little more than a month’s worth of their expenses saved up said they were often motivated to make a change in search of better pay (47%) and better benefits (42%), and many reported that their needs weren’t being met by their former employers (40%).
The study points out the insights showed people who quit seemed better positioned for long-term success, both financially and career-wise. Sixty-three percent called their new jobs better, and 60% said their financial situations had improved.
On average, employees said they saw an 11% increase in their annual earnings after leaving their previous employer, and 86% said this was due to better compensation at their new place of employment. As the report points out, many employers are struggling to fill empty roles and are boosting salaries to entice candidates, which explains the higher wages.
Workers were also also asked to share details about what they find to be better in their new roles. Job satisfaction topped the list. Though many people left their jobs specifically for better pay, a common pleasant surprise was fulfillment— 56% noticed an improvement in this area. Fifty-five percent reported pay improvements, while 53% said they’d found a better work-life balance.
As far as those who can’t relate to this overall improvement after leaving their jobs, they shared their experience as well. The study’s findings said:
Life wasn’t exactly a walk in the park, with many reporting strained finances between jobs. More than half said they had to dig into their savings, while 44% had to reduce their monthly expenditures. (In recent years, the average American’s savings account balance has been about $3,500, which can disappear quickly during times of no income.)
More than a third had to increase their credit card usage or borrow money from friends or family, and 35% had to reduce spending on essentials like food and housing. More than 1 in 10 job-hoppers had to go as far as selling their possessions.
Leaving a position can be intimidating for these reasons, but considering the job satisfaction respondents reported after making a change, it seems the plunge can be worth it.