Job hopping vs. company loyalty: Which is better?
- From August 2019-2022, the Bureau of Labor Statistics found that the national unemployment rate was around 3.7% or 6 million.
- A Pew Research 2019 report found that from 1954, the share of American labor union workers had fallen from 35% to just 10.5% in 2018.
- The August 2022 Job Openings and Labor Turnover Survey (JOLTS) from the Bureau of Labor Statistics (BLS) found that over 4.2 million Americans quit their jobs between June to August that same year.
- In 2022, CNBC reported the top 10 companies employees didn’t want to leave were the following: HSBC Bank USA, Neutrogena, Merck & Co., Thomson Reuters, Pakistan International Airlines, TAP Air Portugal, Egyptair, Mary Kay, KLM Royal Dutch Airlines, Virgin Atlantic.
- Walmart has the highest number of employees than any other US company, ranking at around 2,300,000 as of August 2022, and with a market cap of $355.85 billion.
Gina (Company Loyalty)
Whether romantic, platonic, or professional, all relationships have one thing in common: trust and loyalty are at the forefront. Business owners have a huge amount of pressure on their shoulders. When surrounded by a team of loyal and trusted employees, they show their gratitude in big ways, such as paid education or offering other benefits such as yearly bonuses or special trips. Many employers have tuition reimbursement, allowing the employee to broaden their skillset and the employer to have a further accomplished member on their team.
In a recent survey of 2500 people who recently changed jobs, 72% of them said they experienced 'Shift Shock,' proving the grass is not always greener on the other side. The risk of bitter colleagues, micro-managers, or bad culture may not be worth the extra cash or easier commute to entice a person to leave their old job. Job loyalty also builds strong relationships with co-workers and managers, allowing for more flexibility when time off is needed or an emergency arises. MSG writes, 'Healthy relationships among employees play a crucial role in times of crisis.' This offers peace of mind and allows you to be more present with one's family and friends outside the workplace.
Another example of loyalty paying off is seniority. Not only can one be compensated handsomely, but the opportunity to be part of the decision-making process is rewarding. Having a platform to share one's unique ideas and perspectives contributes to the company's growth and makes for an excellent addition to one's resume. Insider.com shares ten inspiring stories of people who worked their way up from entry-level positions to CEO in the same company. It is indeed possible and worth every effort.
Chad (Job Hopping)
Today's job climate makes it more advantageous to hop around jobs rather than stay loyal to one company. In the past, staying with a company meant pensions, retirement, bonuses, and other perks. But, today, many of these are no longer common, and for most jobs, no additional benefits are given to those who spend their entire lives with a company.
In fact, staying with companies for two years or more can mean 50% less income over one's life as a company is no longer incentivized to increase the employee’s pay. Sometimes, a salaried employee announcing they are moving to another company could cause a bidding war where the current company increases benefits, forcing the newer company to add additional perks to convince the employee to leave.
Regardless, staying at the same job indefinitely is not always best for one's long-term career goals or beneficial to one's future employability. Instead, workers should shoot for landing at the top end of their earning potential.
Today's jobs are evolving fast. It’s smart to stay relevant in this climate by continually learning new skills like adapting to change. Job hopping helps contribute a wide range of experiences to an employee's arsenal and make connections that can help them expand their career later on. Employees who stay put may find themselves in the 375 million jobs worldwide that will be redundant or obsolete by 2030. Job demands change rapidly, and automation will ensure that those who don't possess other skills and experiences will find themselves lost or out-qualified. The only way to avoid this is to become an agile and multi-skilled employee. The old advice of company loyalty is outdated and doesn't reflect the exponential age we currently live. Today's job market selects those who adapt quickly to change, not those who resist it.