Knowing when to switch roles or companies significantly impacts your career growth and trajectory and I have a simple 3P formula that can help you find the right time to switch.
- Paisa (money)
- Power (core competency growth)
- Position (ladder growth)
At any company you are working at or switching to, you should get at least two of the three Ps. If you are getting fewer than two, it is time to switch.
- Paisa (Money)
Monetary compensation is often a primary motivator for job change. Consider a switch if your current role does not provide enough or if the increments do not keep pace with industry norms. If the other two P’s outweigh your average salary, it might be worth staying at the current company.
- Power (Core Competency)
Power in this context refers to your growth in core competency and how close you are to becoming a subject matter expert in the domain you operate in. Aim to become a really good engineer, and a good job will always present you with opportunities to become one.
Assess whether your current role challenges you, introduces you to new technologies, methodologies, or projects, and ultimately contributes to your professional depth and breadth. Again, if the other two P’s outweigh the lack of core competency, it might be worth staying at the current company.
- Position (Ladder Growth)
The third P, Position, involves your upward movement in the org ladder. Your official title matters and it dictates the roles and responsibilities you have handled. Hence, an important criterion to decide if it is the right time to switch or not.
Assess if your current job provides a clear and actionable path for promotion and increases in responsibility. Stagnation can often lead to your future employer doubting your abilities and will negatively impact your career growth.
Again, if the other two P’s outweigh the lack of ladder growth, it might be worth staying at the current company. Most people remain an L5 at Google is an example of this.
I always kept evaluating my situation every 6 months and kept over-optimized for two of the three Ps. For example,
- at Practo, I optimized for Power and Paisa
- at Amazon, I optimized for Position and Paisa
- at Unacademy, I optimized for Position and Power
- at Google, I optimized for Power and Paisa
My entrepreneurial stint has been about optimizing for Position and Power with a hope for a high gain in the third P in coming years.
To me, this has been a pretty structured framework to guide my thinking process, ensuring that my career decisions are both strategic and beneficial in the long run. Hope it helps you as well.