I stayed for 8 years and got a $2,600 raise. A colleague who quit got $15,000 more. Do I have to leave to get paid?

For some employees, regular raises are one big perk of working in corporate America. In fact, the average base pay increase in the U.S. in 2027 is expected to be around 3.5%, which is just a bit higher than the actual 3.4% average pay increase employees received in 2026.

While salary bumps help workers maintain their buying power as prices increase naturally over time, the vast majority of raises are more than mere cost-of-living adjustments, with 89% of pay increases offered due to merit.

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Unfortunately, far too many workers aren't aggressive about negotiating their salary, as 57% of employees admit they've never asked for a pay increase. This can leave workers falling behind, especially the most loyal ones in high-paying positions. In fact, among workers earning $125,000 or more, 30% of tenured employees end up making less than newer coworkers.

This is exactly the situation Joe is facing. Let's pretend Joe worked for the same company for eight years. He's received good reviews and modest pay increases totaling $2,600 over that time. But now Joe discovered that his coworker Tim quit, but was lured back with a $15,000 pay increase. This news has Joe wondering if he must leave for the company to know his worth.

So, should Joe quit, or is there a different approach to take?