Employees Who Stay In Companies Longer Than Two Years Get Paid 50% Less Link inside

shodown

Employees Who Stay In Companies Longer Than Two Years Get Paid 50% Less - Forbes


The worst kept secret is that employees are making less on average every year. There are millions of reasons for this, but we’re going to focus on one that we can control.
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
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 management’s 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 person’s individual circumstances and industries.

Iristheangel

Yep. Sounds about right on average

Chitownjedi

/popcorn

Good reads

W Stewart

Interesting read but a raise matters less and less to me as a get into a higher salary range. I just made it from 12.50/hr to 35/hr in a span of 3 years so if I don't get a raise for another 3 years then I think I'd be fine at least until I get that urge to make 100k a year just to say that I'm making a 6 figure salary. For now though, as long as I'm making around market rate, money isn't everything.

Danielh22185

Obviously a raise and a promotion are two very different things.

If you can stay at your current company and become promoted within a 1-2 year span then I would say stay. My company for example is so massive so promotions / lateral moves for more pay is easy to do at least in the beginning. It's not until I get into the jobs that pay deeper into the six figure range that things start to slow down as the jobs are much less available; which plays into what this article is talking about where I would have to wait several years with minimal raises to obtain a new position when I could do it faster for some other company.

The key is about marketing yourself for what you want to / foreseeably can obtain next and doing it at the RIGHT TIME.

My .02 on the matter is stick with it as long as you are making rapid movements once it becomes stagnant within 2-3 years its time to move up or move on.

Too many times I've worked with people who have been with the company 10-20 years and I am making more than them. These people are the ones that get comfortable and afraid of change and are only getting 1-3% raises annually.

Also these people are generally the least productive (just my personal experience)

CyberfiSecurity

I could not agree more. I was in that situation, for my last project I was there for 6 years.

N2IT

I recently received 4.5% and it felt like cost of living even though according to the article is was much higher.

I find hopping while not the best for a nice looking resume seems to get me payed more.

Thanks for the post and article.

olaHalo

I cant remember where I heard it but someone said something along the lines of
If you stay at a job longer than 2 years and you have not been promoted or received a significant raise then its time to move on

Personally I cannot wait longer than a year though. The hopping hasn't hurt me yet; I think...

no!all!

A good read, indeed. I'll be coming up on 2 years at my current place of employment but I'm a contratcor. I'm waiting to see if they'll hire me full time over the next few months. If not I'll probably starting looking elsewhere for employment...

shodown

I have moved and I have went from high 50's to over 150K. If I had kept my 1st job I would be at 90K max, even if I got promotions.

RomBUS

Curious...is it illegal for companies to not provide a yearly raise for their employees? I've been at a company that do not supply raises for ANYONE (except maybe the higher ups) since I've been hired and some employees have been there for almost a decade and not a single raise to their name either. Quite a detrimental factor to employee morale if you ask me

impelse

RomBUS wrote: »

Curious...is it illegal for companies to not provide a yearly raise for their employees? I've been at a company that do not supply raises for ANYONE (except maybe the higher ups) since I've been hired and some employees have been there for almost a decade and not a single raise to their name either. Quite a detrimental factor to employee morale if you ask me

That's sad.

Heero

Nothing illegal about not offering raises. In most places in the US, there is nothing illegal about firing someone for no reason. Considering that, not giving pay raises is minor.

shodown

I wonder why those employees even stay. 10 years and no raise is crazy

jibbajabba

RomBUS wrote: »

Quite a detrimental factor to employee morale if you ask me

Clearly not if people put up with this for a decade ...

Jon_Cisco

Heero wrote: »

Nothing illegal about not offering raises. In most places in the US, there is nothing illegal about firing someone for no reason. Considering that, not giving pay raises is minor.

Keep in mind that companies are free to cut your pay as well. Some employees might have contracts to protect against this but it is completely legal to cut your pay. They just need to inform you of the change before they do it.

There is always something more to the story.

Chitownjedi

shodown wrote: »

I have moved and I have went from high 50's to over 150K. If I had kept my 1st job I would be at 90K max, even if I got promotions.

I take it more than anything its CCNP Voice that's doing a lot of heavy Lifting? I debated between Design and Voice, but I hear if you do Voice, it kind of makes our R/S kind of wither away.

FloOz

Great article, thanks for posting. Couldn't agree more with what was said. If I stayed at my first IT job it would have taken 10+ years to get to the pay I have now.

Trifidw

To counteract that I've doubled my pay in 6 years working for the same company... (I do accept that I am the exception for every rule though...)

RomBUS

jibbajabba wrote: »

Clearly not if people put up with this for a decade ...

Honestly, they would have no where else to go... for some of them this has been their only job (or best paying) since being in the states. I see at as the company taking advantage of that...

shodown

If I had stayed at my 1st job I would have still gotten those certs, but i'm pretty sure the salary would be the same. The guys who haven't moved are making around that amount give or take a few dollars. They all have CCNP V,

datacomboss

RomBUS wrote: »

Honestly, they would have no where else to go... for some of them this has been their only job (or best paying) since being in the states. I see at as the company taking advantage of that...

There is always somewhere else to go.

Deathmage

it's so true... eek it's coming up on 3 years for me.... I should start looking!

Danielh22185

To add an additional comment...
I originally started in the IT field just a mere 4 years ago making 35k/year. I received a promotion within a year to bump me to 55k/year (good promotion). Less than a year later I left for an originally contracted position making 90k and then was hired on full time with the same company for 75k. My track record is about every 1-2 years I am making a 20%+ increase. I am sure I will slow down a bit as I settle but hope to make another 10-15% increase here very soon.

I have nothing against job hopping so long as you do it at the right time and you have marketed yourself well for the new position. I feel in the IT world too this is especially significant with the fast changing industry.

philz1982

shodown wrote: »

I have moved and I have went from high 50's to over 150K. If I had kept my 1st job I would be at 90K max, even if I got promotions.

I echo this statement, just be careful what you sign. If you sign the wrong employment agreement, you will be stuck due to IP protections and non-compete clauses. Then you will struggle to change roles.

philz1982

Also, make your jump be about developing in demand future skills not just pay.

shodown

philz1982 wrote: »

I echo this statement, just be careful what you sign. If you sign the wrong employment agreement, you will be stuck due to IP protections and non-compete clauses. Then you will struggle to change roles.

Be very aware of this. I got stuck at one job due to taking training and relocation bonus. I got a job with a very well known place and had to stay cause I would have owed the job 10K. The next job was willing to shell it out, but then I would have been in debt to them so I had to pass.

kohr-ah

Danielh22185 wrote: »

To add an additional comment...
I originally started in the IT field just a mere 4 years ago making 35k/year. I received a promotion within a year to bump me to 55k/year (good promotion). Less than a year later I left for an originally contracted position making 90k and then was hired on full time with the same company for 75k. My track record is about every 1-2 years I am making a 20%+ increase. I am sure I will slow down a bit as I settle but hope to make another 10-15% increase here very soon.

I have nothing against job hopping so long as you do it at the right time and you have marketed yourself well for the new position. I feel in the IT world too this is especially significant with the fast changing industry.

Very true.
My case was started making 40k.
Got a raise a year and a half later to 46k
Raise a year and a half to 50k

Hopped jobs and went to 65k (and 1/3 the work)

That job relocated and I went to a contract position that paid 75k and that company hired me on full time for 80k + 10% bonus.

I dont regret hopping at all. From here I just hope to go to a place where I want to stay and continue being promoted within. There is always better things they can give me than money.

pinkydapimp

I agree with this article. you never want to be known as someone who hops around. But i would say at the 2 year mark its always a good idea to look at where you are and decide if you can learn anything new in the current role. if you cant, it may be time to look at other options. But obviously, when you have a family or if the job market is bad that changes things a bit.

goldenlight

Being Laid off in 2012 was a wake up call for me. Earned a couple of BS degrees, and one Associates degree at company expense,so it wasn't a total lost. Will always be looking for opportunity to improve my career. With job uncertainty switching employers every couple of years is the new norm. I might even switch sooner since my salary sucks.