Skip to comments.Employees Who Stay In Companies Longer Than Two Years Get Paid 50% Less
Posted on 06/23/2014 12:08:26 PM PDT by SeekAndFind
The worst kept secret is that employees are making less on average every year. There are millions of reasons for this, but were going to focus on one that we can control. Staying employed at the same company for over two years on average is going to make you earn less over your lifetime by about 50% or more.
Keep in mind that 50% is a conservative number at the lowest end of the spectrum. This is assuming that your career is only going to last 10 years. The longer you work, the greater the difference will become over your lifetime.
Arguments for Changing Jobs
The average raise an employee can expect in 2014 is 3%. Even the most underperforming employee can expect a 1.3% raise. The best performers can hope for a 4.5% raise. But, the inflation rate is currently 2.1% calculated based on the Consumer Price Index published by the Bureau of Labor Statistics. This means that your raise is actually less than 1%. This is probably sobering enough to make you reach for a drink.
In 2014, the average employee is going to earn less than a 1% raise and there is very little that we can do to change managements decision. But, we can decide whether we want to stay at a company that is going to give us a raise for less than 1%. The average raise an employee receives for leaving is between a 10% to 20% increase in salary. Obviously, there are extreme cases where people receive upwards of 50%, but this depends on each persons individual circumstances and industries.
(Excerpt) Read more at forbes.com ...
If you stay in the same job longer than 7 years they can hire someone new at less money.
Our economy does not reward longevity.
In the 1980’s I was a 20-something. I was earning about 10% less than the engineers doing the same job who had been there 20-plus years. I figured this was due to the awesome retirement program. But I had to be there 10 years to vest and you had to stay for some number of points, which I can’t recall. They were composed of your age and years of service. But to get the maximum you’d basically have to have started at 20-something and stayed 30 years. By the 1980’s it was impossible to stay that long and they would lay you off depending on where you stood in the retirement system, meaning if you weren’t “connected” you wouldn’t get the maximum points. So, the engineers who stayed were screwed.
Now the same is true of salary shrinkage, but there is no defined benefit retirement plan. (Unless you’re in government. Then, not only is retirement a good plan, with medical, but they can’t or won’t lay you off. You can be a dead man at work and they won’t fire you.)
If you hop every 2 years, you will soon be unemployable.
Yes, a few well-timed moves is the best way to boost your salary.
No, you can't jump to a new job every 2 years without leaving the impression that you never get anything done and can not be counted on.
Worse, you can give the impression that you are always just one step ahead of being found out for incompetence.
Job hopping is a great way to increase your wages, but the cost is life stability. It’s hard to get roots when you switch jobs all the time, since eventually that will mean switching towns, states, maybe even countries. Not to mention the fact that as you keep increasing your price tag you keep increasing what they expect. Nope, I’m very OK making less money without moving or working overtime.
Not any more. 2 year is maximum. If you are not able to move within your company then it is time to move to another. It is up or out. Anyone stagnating is just lazy.
In general, recruiters are targeting the same set of job hoppers with attractive offers which have to be attractive to get the job hoppers to take them.
During the worst of the Obama recession, some friends and I put together a serious proposal to rent some of the glut of vacant office space and charge people a nominal fee to work for us so they would have the prestige of a job and an office cube from which to be recruited.
We debated about the deception such a plan would entail and, in the end, decided not to go forward with it for that reason.
Yes, I tried this lousy advice once.
I moved from a job where I was respected and had friends, to a job where my boss was an idiot (thought degrees Rankine and degrees Kelvin were the same thing, went through three textbooks that showed he was wrong, and still thought they were the same) and a crook (stole, and used, patented designs from his previous employer).
I learned that if you are only working for the money, it is unlikely the you will be happy with your job.
No one got a 3% raise this year where I work. A few of us got 2.5%.
No. This isn’t amusing. Not in the slightest.
It is if you leave out gasoline, utilities, food, entertainment, and automobiles.
lack of commitment = gubmint sistance
There is a big difference between 10 years of experience, and 1 year of experience 10 times.
What is not factored into the equation is the value of your personal network that gets developed over time. You establish a reputation when you are a long-timer at a significant company. You learn how the organization works, and if the company is large enough, how the entire enterprise works.
Nobody can do that in a series of 1-2 year hops.
Man, has this guy been brain washed or what? What freaking planet has he been living on?
Get a brain and get out the house once in a while Cameron King!
The worst thing a software guy can do is become the world’s authority in a technology only one company in the world cares about.
If these raise percentages cited apply to both public-sector, and private-sector jobs, then it looks like the private sector is not giving raises at all. ?
I believe that no one where I work has gotten a raise in the past 3 to 4 years.
I read that if food and fuel were added back into the calculations for the CPI, inflation would be well over 10-12%. Can’t find that now.
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