A recent article in Forbes magazine issued a dire warning that staying in the same job for more than two years could cut your lifetime earnings in half. It’s one more good reason to search jobs regularly so you do not miss out on your full potential.
The calculations were based on human resource practices that have evolved in the wake of the 2008 recession. The average raise this year is 3% but that translates into 1% when you adjust for inflation. By comparison, the average salary increase for people who switch to a new company is between 10% and 20%.
The fact is that staying on a job too long could actually cost you much more than half your income. These figures are based on just 10 years. The disparity is expected to grow even wider the longer your career lasts.
The explanation for all this is that many companies have frozen pay and slowed down promotions since 2008. To find better opportunities you may need to move onward.
Of course, there are risks and rewards attached to all your career decisions. If you are in an industry where you feel like you may be punished for making too many jumps, you may just want to keep your eyes constantly open for the best opportunities while you pace yourself to make an acceptable number of transitions.
At the same time, keep in mind the drastic impact an income difference this large could have on your life. It could determine whether you can ever buy your own home or what schools you can afford to send your children to. It could mean the difference between scraping by or feeling secure.
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