Will my annual income increase if I change jobs?

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People change jobs for various reasons, such as career advancement or pursuing the work they truly want to do. However, the most common goal in a job change is to increase annual income.

In reality, even after changing jobs, annual income does not increase significantly.

If changing jobs alone were enough to increase annual income, many people would be switching jobs one after another, and there would be no low-income earners left in Japan.

The average annual income for Japanese people is about 4.6 million yen, and the fact that it is not easy to increase one’s income simply by changing jobs is reflected in this figure.

In this lesson, we will explore the reasons why annual income often fails to increase, and discuss effective methods to improve your earnings.

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As mentioned earlier, changing jobs alone does not lead to a significant increase in annual income.

The typical increase in annual income after changing jobs is approximately as follows.

Furthermore, the increase in income greatly depends on which company you change to, as well as your individual abilities and skills.

When changing jobs to a large company, or when moving into positions such as a department manager or through headhunting, the annual income tends to increase even more.

When changing jobs to an industry with no prior experience or to a completely different field from your current one, there may be cases where your annual income decreases somewhat.

Why doesn’t annual income increase even after changing jobs?

This is because your current annual income reflects the career, trust, and contributions you have built up within your current company. However, there is no guarantee that this level of experience will be recognized or valued in the same way at a new company.

When joining a new company, the way of working and the rules change, and it is necessary to build relationships with supervisors, seniors, and clients from scratch.

No matter how much experience and high skills a candidate has, it is uncertain whether offering a salary higher than their current one will truly result in performance and contributions exceeding those at their previous job.

In the first place, it is extremely difficult to accurately assess an applicant’s level of contribution in just two or three interviews, and therefore, the prospective employer cannot offer a significantly higher salary than the applicant’s previous job.

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People whose annual income increases when changing jobs often fall into one of these two categories. Therefore, if you meet either of these criteria, you can expect an increase in your annual income after changing jobs.

①Possess experience or skills that no one else has.

People who have experience that ordinary people rarely get to have tend to see an increase in their annual income.

For example, if someone has experience founding a company as a CEO, significantly increasing sales, and successfully establishing the business, or if they have experience launching a new business and making it somewhat profitable in their previous job, they are considered an immediate asset. From the company’s perspective, such individuals are highly sought-after talent.

If someone is a talented individual who can generate sales, the company understands that they will be a long-term asset, and therefore, may be willing to offer a higher annual income to hire them.

②Having multiple outstanding achievements and a high market value.

For example, in sales positions, individuals who consistently achieve top results and generate significant profits every month, or those who excel as managers by developing their teams and producing strong numbers, are considered valuable. This applies not only to top performers but also to those in management roles.

In short, people who can produce measurable results such as sales, productivity, or hiring rates are valued by any company and are expected to see an increase in their annual income after changing jobs.

As Japanese people, we typically do not think of changing jobs as a means to increase our annual income.

This is because annual income is not something that simply increases by changing jobs; rather, it is considered to increase by actively contributing as an immediate asset at the new company and delivering outstanding results.

Rather than simply explaining the reasons why annual income does not increase, it becomes clearer if you put yourself in the interviewer’s position and think from their perspective.

Let’s suppose you are in charge of human resources, and your job is to hire people who can bring profit to the company.

Even hiring just one employee can cost anywhere from 1 million to 10 million yen.

On top of that, a foreign applicant whose native language is not Japanese came to the interview.

Since the applicant is a foreigner, effective communication was difficult to achieve in the first place.

We tried rephrasing our questions, using simpler vocabulary, and speaking slowly, but we still couldn’t clearly understand what kind of experience the applicant had, what skills they possessed, or how they could contribute to the company.

Although we were not entirely sure if the applicant’s experience and skills perfectly matched the position we are recruiting for, we decided to proceed with hiring them.

Would you offer a high salary to that foreign candidate?

Wouldn’t you prefer to maintain the current salary level at first and observe how things go?

If the employee does not demonstrate the expected performance after joining the company, how would you handle the situation?

What would you do if the employee resigns within less than one year after joining the company?

Hiring each individual employee involves a significant cost, but what would you do if the hired employee turned out to be unexpectedly unsuitable?

From the interviewer’s perspective, it becomes clear that one of the reasons why salaries do not increase significantly after changing jobs is that it is physically impossible to fully evaluate candidates within such a short period of time.

Since it is difficult to predict whether a newly hired employee will perform well after joining the company, a significant salary increase cannot be expected initially. However, if the employee works hard and delivers results after joining, their salary will gradually increase over time.

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When foreigners living in Japan seek to change jobs, it is common for them to hope for a salary increase of around one million yen compared to their current position. However, to be honest, this is generally not feasible.

In interviews, you will be asked about your desired annual salary. However, please be careful, as stating that you want an increase of 1 million yen or more may result in rejection.

Without discussing the practical realities, although it is difficult to achieve a 1 million yen increase in annual salary after changing jobs, if you can logically and reasonably explain the reasons and basis for requesting such an increase, there is room for consideration.

How can your past experience and skills contribute to the company? And if you are hired, how will you help increase the company’s profits?

If you can provide specific and concrete reasons to support your request, you can reasonably expect a significant increase in your annual salary.

Simply stating a high desired salary will not convey your intentions to the other party at all; on the contrary, it may leave a negative impression. Taking this lesson as an opportunity, please try to logically communicate your market value and how you can contribute to the company, and negotiate your salary yourself.

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