Internal employer raise budgets are capped as a percentage pool divided across existing staff. External job offers are priced against competitive market rates, creating a persistent pay gap.
The Atlanta Fed Wage Growth Tracker recorded July 2026 data. Switchers earned 4.4% wage growth versus 3.6% for stayers on its three-month moving average.
The switcher premium fluctuates across economic cycles and briefly inverted in May 2025, when stayers led switchers by 0.1 percentage points. Switcher wage gaps also vary significantly across industries and career levels.
Evaluating internal growth against market offer rates keeps compensation aligned with market value.
What was your biggest single pay jump, and did it come from moving or staying?
(For educational purposes only. Not financial advice.)
