Employees who stay in the same job for more than two years will earn 50% less over their lifetime than people who change companies more frequently, research has found.
The average raise a worker could expect in 2014 was approximately 3%, but with inflation at 2.1%, that raise equates in real terms to just 1%, according to Forbes magazine.
By contrast, the average raise an employee receives for leaving their company is between a 10% to 20% increase in salary. In some cases, that figure can be as high as 50%.
The reason company-loyal employees lose out in the long-run is that many businesses have been forced to freeze payroll and decrease salaries as they navigated themselves out of the recession in 2008.
‘The Hays UK Salary & Recruiting Trends 2015 showed that 57% of accountancy and finance professionals expect to move jobs within the next 12 months, and this year we have seen that many finance professionals are focused on finding a new employer,’ says Karen Young, director at Hays.
‘Employees rarely move due to salary alone, but it is still an important factor and we do see a lot of people moving jobs regularly to increase salary. While there are financial benefits of moving jobs regularly, it is also very important that you show commitment to your role and can justify your reasons for moving jobs so that you do not appear to be a serial job hopper, which can be off-putting to employers at a future date in your career.’
Another benefit of moving jobs regularly is an added ability to accelerate your career progression and prospects, through exposure to different types of work and the building up of new skill sets – something that could certainly prove beneficial to you in achieving the ACCA performance objectives.
‘Regularly moving jobs is a fantastic opportunity to explore the jobs market and develop your experiences in your chosen profession,’ says Nikki Turberville, Michael Page Financial Services. ‘It will enable you to discover the type of industry you want to work in, the people you want to work for and the company culture you wish to be part of. It is also a great opportunity to change roles within your company to improve your transferable skill sets.’
In addition, you will meet a large network of professionals who will likely be useful for future job opportunities.
However, moving roles regularly in the permanent market can be risky, including an increased likelihood of being perceived by employers as inconsistent and lacking in commitment and loyalty.
Most employers will look unfavourably on full-time professionals who have regularly flitted from job to job, so if you’re not operating on a contract basis, make sure you have given a clear explanation for your regular role-hopping.
‘If you are looking to regularly move jobs, operating as a contractor is your best option,’ advises Joss Collins, a financial services specialist at Venn Group.
‘Not only will you experience different roles at various companies, but you will also develop your skills far quicker than you would if you were at one organisation.’