Work in Progress, Worklife, Workplace, TIME

March 27, 2008 9:30

Switching jobs—again? It'll cost ya

Posted by Lisa Takeuchi Cullen | Comments (8) | Permalink | Trackbacks (0) | Email This

Early in my career, I was a habitual job hopper. I held my first four jobs in five years. The restlessness wasn't without source; I was in the midst of a search for a vocation that would define me, if I want to be all existential about it. The good news is I found it. Here I am, an 11-year veteran at the same dang employer. The bad news is I've been eating the same cafeteria food for over a decade now. You know you've been here too long when you've memorized the daily soup special.

It's nice to settle down, job-wise, if only to avoid the hassle of ordering new business cards every 12 months. But it turns out I'm also scoring major financial gain by staying in place. New research finds that workers who change jobs a lot wind up earning less than those who stay put.

The study, published in the February issue of the American Sociological Review, the journal of the American Sociological Association, sought to determine the impact of career mobility on worker’s wages. Sociologist Sylvia Fuller of the University of British Columbia tracked nearly 6,000 workers during their first 12 years in the labor market.

Here's why job-hopping costs workers:

• In the first five years of a job, Fuller found each year of tenure is associated with approximately 2.4% higher wages for men and 2.9% higher wages for women. In other words, earnings, like interest, compounds; if you miss the raises that come with tenure, your later earnings will reflect that loss.

• Job-hoppers tend to spend a greater proportion of time unemployed.

• A greater proportion of their job changes are the result of layoffs.

Fuller doesn't address the oft-heard argument that the best way to get a raise is to take a new job. But she does find that job-hopping "can be a wage asset when it is concentrated in the early years of employment and not coupled with layoffs, discharges, employment gaps or family-related leave. In this case, moderate or even high levels of mobility can lead to equal or better wage outcomes than stability."

So hop away, young 'uns. Just settle down before too long. You could always skip the caf and brown-bag a sandwich.

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Reader Comments (8)

JB:

ok, first, you do make it a bit difficult to comment on the blog (the whole, set up an account thing turns people away, I'm sure).

But now that I'm on...I just wanted to say I was at a career discussion a few weeks ago and an executive recruiter was saying that 9-10 years into a job is a great time to LEAVE, especially if you've shown steady progression. It shows that you're loyal, but still hungry.

When you stay at a place longer than that (say 15 years) and then try to leave, prospective employers start to wonder why you were at your old place so long. Were you too comfortable? Were you still contributing? Or were you hanging on?

Just a different perspective, and it made sense to me.

Posted by JB | March 27, 2008 8:57 PM

JB:

ok, first, you do make it a bit difficult to comment on the blog (the whole, set up an account thing turns people away, I'm sure).

Just a different perspective, and it made sense to me.

Posted by JB | March 27, 2008 8:57 PM

JB:

sorry I posted twice. The thing said my post wasn't accepted.

Posted by JB | March 27, 2008 8:58 PM

Prklypear:

Re *JB*, it's a quirk with the system - ignore it. Says something like "you are forbidden to post" but still posts your comment. I made the same mistake :) Hey, Lisa, can you fix this??

Posted by Prklypear | March 28, 2008 9:58 AM

Prklypear:

Oops, forgot to post my comment! I stayed at my first job for 16 years - way too long! Every year I said I was gonna leave, but it was just too comfy and I was well-paid. Finally jumped ship when new bosses decided not to continue my 4-day flex work week (you know, where you do 5 days worth of work in 4 days, but only get paid for 4). I was pregnant at the time - about to go on my third maternity leave (thank you FLMA!)- so I took my paid leave and then quit. Best move I ever made - since then I've had my own business and worked in several different careers, each of which has been interesting and rewarding. Plus I've been able to balance family and work. On the financial side, though, I made the most money in those first 16 years :(

Posted by Prklypear | March 28, 2008 10:11 AM

Lisa Takeuchi Cullen

sorry the tool is such a pain, guys. i'll onpass to our tech guru. thanks for sticking it out.

Posted by Lisa Takeuchi Cullen | March 28, 2008 11:31 AM

Jacob Johansen

I agree, job hopping a lot could be damaging to your wage earnings, but a lot of industries don't pay much, so if you are indeed talented, it might behoove you to move on.

Remember, you're only as good as the opportunities that you create for yourself.

Plus, after you've spent many, many years with one company, it might be time to do something fresh. Challenge yourself.

If there's one thing I'm learning in 2008, it's that it's good to push your comfort zone!

Posted by Jacob Johansen | April 5, 2008 11:40 PM

TO8

Something about getting that job; taking a job interview;
http://www.bizcovering.com/Employment/Taking-a-Job-Interview.94459

Posted by TO8 | April 7, 2008 12:55 AM

About Work In Progress

Nina Subin

Lisa Takeuchi Cullen is a staff writer for TIME. She blogs about work. Why? Because TV was taken. Think of her as the grumpy colleague ranting by the water cooler.
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lisa_cullen at timemagazine.com