June 23, 2014 at 13:19Employees with experience in the company for more than 2 years earn 50% less
Forbes magazine drew attention to an interesting topic that is not customary to talk about: the dependence of the employee's salary on the length of service in the company . It turns out that not the loyal employees can count on the maximum salary, but quite the opposite - those who often change jobs.
There are several reasons for this phenomenon. One of them is the personnel policy of most companies, which sets a ceiling on the maximum increase in employee salaries. On average, in 2013, salaries within companies increased by 3% . Weak employees can expect an increase of 1.3%, and the best - 4.5%, but no more. This roughly corresponds to the inflation rate (2.1% last year).
At the same time, when changing an employer, the average increase in salary is from 10% to 20%, and sometimes more.
It got to the point that even recruiting companies recommend that employees change jobs every 2-4 years. The calculation shows that if you do not do this, then in 10 years you will earn much less.
The graph shows the annual income over a 10-year career, taking into account the annual increase in salaries by 3%, as well as the schedule taking into account the change of work every two years with an increase in salaries by 10%. In this situation, an employee who remains loyal to the employer in 10 years will earn one and a half times less than his colleague, “flyer”.
Due to the recession, many firms “froze” salaries for old employees, while at the same time raising offers for new employees in order to be competitive in the labor market.
The situation with “fines” of loyal personnel is observed in many industries, including IT. Too many companies are simply not ready to raise their employees' salaries by 20-50%, although they may well offer this amount to a new person.
There are several reasons for this phenomenon. One of them is the personnel policy of most companies, which sets a ceiling on the maximum increase in employee salaries. On average, in 2013, salaries within companies increased by 3% . Weak employees can expect an increase of 1.3%, and the best - 4.5%, but no more. This roughly corresponds to the inflation rate (2.1% last year).
At the same time, when changing an employer, the average increase in salary is from 10% to 20%, and sometimes more.
It got to the point that even recruiting companies recommend that employees change jobs every 2-4 years. The calculation shows that if you do not do this, then in 10 years you will earn much less.
The graph shows the annual income over a 10-year career, taking into account the annual increase in salaries by 3%, as well as the schedule taking into account the change of work every two years with an increase in salaries by 10%. In this situation, an employee who remains loyal to the employer in 10 years will earn one and a half times less than his colleague, “flyer”.
Due to the recession, many firms “froze” salaries for old employees, while at the same time raising offers for new employees in order to be competitive in the labor market.
The situation with “fines” of loyal personnel is observed in many industries, including IT. Too many companies are simply not ready to raise their employees' salaries by 20-50%, although they may well offer this amount to a new person.