How Long Should You Stay At Your Job?

Summary

In 2024, a significant number of American workers, driven by the desire for higher salaries and career advancement, are considering job changes. The data indicates that job switchers tend to experience faster salary growth than those who remain in their positions. However, experts advise a strategic approach to job hopping to avoid negative perceptions and ensure skill development. The optimal job tenure varies by age and career stage, with younger workers having more flexibility to switch roles. Ultimately, focusing on skill acquisition and personal growth, rather than just salary or job duration, is recommended for long-term career success.

Takeaways

• 📈 A significant number of American workers (95%) plan to seek new job opportunities in 2024, with higher income being a primary motivator.
• 💰 Salary increases are found to be more substantial for job switchers compared to those who remain in the same position, with an average increase of 5.9% versus 5.1%.
• 🚀 Strategic job moves are crucial for career advancement; rapid rises in rank can lead to vulnerability during economic downturns.
• 🤔 Companies often expect a level of loyalty that may not align with the reality of the job market and employee needs.
• 💡 The optimal time to stay at a job varies and should be based on career advancement, salary growth, and personal well-being.
• 🧗 Job hopping is driven more by age than generation, with younger workers staying at jobs for shorter periods.
• 🎯 Career aspirations and personal growth are significant factors influencing the decision to leave a current position.
• 🌟 Long-term loyalty and tenure can lead to higher compensation and senior leadership positions within a company.
• 📉 Economic conditions and the job market affect the feasibility and timing of job changes.
• 🔍 Employers are increasingly understanding of gaps and short-term experiences on resumes, recognizing the complexities of the modern job market.

Q & A

What percentage of American workers planned to look for a new job in 2024?

95% of American workers said they planned to look for a new job in 2024.

What is one of the main reasons cited for American workers wanting to switch jobs?

One of the main reasons is the desire for a higher income, with 45% of workers stating they need higher earnings.

How does job switching affect salary growth compared to staying in the same position?

Job switchers tend to increase their salary more quickly than those who stay in the same position. In February 2024, those who stayed at their job for more than three months saw a 5.1% salary increase year-over-year, while job switchers experienced a 5.9% increase.

What is the importance of being strategic about job moves according to hiring professionals?

Being strategic about job moves is important to avoid rising too quickly in ranks and becoming an expensive head that's easily let go in a downturn. It's also about making it seem like you're committed to the company for the long term.

What are some common reasons for leaving a job?

Common reasons for leaving a job include seeking higher salaries, desiring more growth opportunities, obtaining better benefits, escaping a toxic work environment, and improving work-life balance.

How does the desire for higher salaries influence job hopping?

The desire for higher salaries may lead people to job hop, as switching companies is often the fastest way to achieve a higher income level and a more senior role.

What percentage of Gen Z prioritizes advancement opportunities more than other generations?

Gen Z is 36% more likely than other generations to prioritize advancement opportunities.

What is the median tenure for American workers in 2022?

In 2022, the median tenure for American workers was 4.1 years.

How does the optimal time to stay at a job vary by age?

The optimal time to stay at a job varies by age, with younger workers typically staying for shorter periods. For example, between 2002 and 2022, workers aged 20 to 24 usually stayed at their jobs for less than one and a half years.

What advice do recruiters give for job switching, especially for younger workers?

Recruiters suggest that there is more leeway for job switching earlier in one's career, particularly for Gen Z and millennials in their early 20s. However, as they reach their late 20s or early 30s, they should be more strategic and intentional about their moves.

What should workers consider instead of focusing solely on the length of time at a job or salary?

Workers should focus on the skills they are acquiring and their career development rather than just tenure or compensation. It's important to assess whether they are gaining the right skills and are ready to move on to the next level.

Why do some companies adopt a more forgiving attitude towards job hopping?

Some companies adopt a more forgiving attitude towards job hopping because they understand that employees may be pursuing opportunities to learn more, advance their careers, and gain broader experience with a clear career goal in mind.

Outlines

00:00

💼 Job Hopping for Salary Growth and Career Advancement

The first paragraph discusses the trend of American workers planning to look for new jobs in 2024, primarily due to the desire for higher salaries. It highlights statistics showing that job switchers tend to increase their salaries more quickly than those who stay in their current positions. The narrative includes personal accounts of significant salary increases following job changes. However, it also emphasizes the importance of being strategic about job moves to avoid becoming an 'expensive head' during economic downturns. The paragraph touches on the expectations of loyalty from companies and the strategic approach employees must take to manage these expectations. It also explores the reasons behind job hopping, such as seeking higher salaries, advancement opportunities, and better work-life balance. The paragraph concludes by questioning the optimal duration of employment for career growth, salary, and well-being.

05:03

🏢 Changing Perceptions of Job Tenure and Loyalty

The second paragraph delves into the changing perceptions of job tenure and loyalty across generations. It discusses how the traditional expectation of staying with one company or within one career for life has shifted. The paragraph highlights the impact of reduced incentives like pensions on loyalty and the importance of considering long-term benefits when job switching. It also addresses the introspective questions Gen Z and millennial professionals are asking about their career paths and the flexibility allowed for job switching early in one's career. The paragraph advises focusing on skill acquisition rather than job tenure or compensation and considers the long-term rewards of loyalty and tenure within a company.

10:03

🎯 Prioritizing Skill Development and Strategic Job Movement

The third paragraph emphasizes the importance of upskilling and the role of companies in retaining talent through strong learning cultures. It discusses the 'Goldilocks dynamic' of turnover, where some industries may not mind high turnover rates. The paragraph suggests that modern employers, particularly from younger generations, are more empathetic and understanding of gaps or short-term experiences on resumes. It concludes by reinforcing the idea that individuals must make career decisions based on their personal circumstances and goals, as each career path is unique to the individual.

Keywords

💡Job Switching

Job switching refers to the act of changing employers or positions within a short period of time. In the context of the video, it is highlighted as a strategy for increasing one's salary more quickly than staying in the same position, with statistics showing that those who switch jobs experience a higher year-over-year salary increase compared to those who stay in their positions. The video also discusses the strategic considerations involved in job switching, such as the potential for career advancement and the importance of not appearing too transient to future employers.

💡Salary Growth

Salary growth refers to the increase in an individual's income over time. The video emphasizes the desire for higher salaries as a primary motivator for American workers to seek new employment opportunities. It also contrasts the rate of salary growth for those who stay in their jobs versus those who switch jobs, indicating that the latter often leads to quicker salary increases.

💡Career Advancement

Career advancement involves moving forward or up in one's professional career, often through promotions, skill development, or acquiring new experiences. The video discusses the importance of career advancement as a reason for job hopping, with many workers, especially from Gen Z, prioritizing advancement opportunities. It also touches on the idea that changing companies might be the fastest way to reach a higher level role, both in terms of seniority and income.

💡Workplace Loyalty

Workplace loyalty refers to the devotion and commitment an employee has towards their employer. The video script suggests that companies often expect a high level of loyalty, but employees may feel that they are at the mercy of the company's decisions. It also challenges the traditional notion of staying with one company for life, which was more common in previous generations, and instead promotes the idea of strategic job moves for career growth.

💡Toxic Work Environment

A toxic work environment is one that is harmful to employees' well-being, often characterized by negative dynamics, poor management, or a lack of support. In the video, leaving a toxic work environment is cited as one of the common reasons for employees to seek new jobs. It underscores the importance of a positive workplace for employee satisfaction and retention.

💡Work-Life Balance

Work-life balance refers to the equilibrium between an individual's professional responsibilities and their personal life. The video discusses better work-life balance as a factor that influences job changes, with employees seeking positions or companies that allow for a healthier integration of work and personal life. This concept is crucial in the modern workforce, as it directly impacts job satisfaction and overall well-being.

💡Negotiating Power

Negotiating power is the ability to influence the terms of a negotiation, often through factors such as market demand, personal skills, and available alternatives. In the context of the video, workers have more negotiating power when they are in high demand and have multiple job offers, which can lead to better compensation and benefits. This power dynamic is a key factor in the decision to switch jobs.

💡Career Aspirations

Career aspirations are the goals and ambitions an individual has for their professional life. The video emphasizes that workers may leave their current positions if these do not align with their career aspirations or if they do not see opportunities for growth within their existing roles. It suggests that individuals should be strategic about aligning their job moves with their long-term career objectives.

💡Job Hopping

Job hopping is the practice of frequently changing jobs, often for reasons such as seeking higher salaries, better benefits, or career advancement opportunities. The video discusses job hopping as a common trend, particularly among younger generations, and how it can lead to quicker salary increases but also warns of the potential risks associated with it, such as being perceived as lacking commitment by future employers.

💡Employee Retention

Employee retention refers to the strategies employers use to keep their workforce stable and prevent turnover. The video mentions that companies are increasingly focused on employee retention and are recognizing the importance of helping employees upskill to keep them engaged and satisfied. A strong learning culture within a company is presented as a key factor in improving retention rates.

💡Intergenerational Workforce

An intergenerational workforce is a diverse group of employees from different age groups and generations working together. The video discusses how different generations may have different attitudes towards job loyalty and career progression, with younger generations like Gen Z being more likely to prioritize career advancement and change jobs more frequently.

Highlights

95% of American workers plan to look for a new job in 2024, with money being a primary motivator.

45% of American workers express a need for higher income, driving job change considerations.

Job switchers experience faster salary growth compared to those who stay in the same position.

In February 2024, job stayers saw a 5.1% salary increase, while job switchers saw a 5.9% increase.

Strategic job moves are crucial to avoid becoming an 'expensive head' easily cut during downturns.

Companies may expect a level of loyalty, but workers must navigate this with strategic career moves.

The optimal time to stay at a job varies for career advancement, salary, and well-being.

Desire for higher salaries and lack of growth opportunities are common reasons for job departures.

Job hopping can be a fast track to seniority and higher income levels.

Gen Z prioritizes advancement opportunities 36% more than other generations.

Workers have more negotiating power when recruited by employers than through internal promotions.

Better benefits, escaping a toxic work environment, and work-life balance are also reasons for leaving jobs.

Higher pay does not necessarily equate to higher job satisfaction due to treatment and work conditions.

Career aspirations and personal growth are key factors in deciding to leave a job.

Americans typically stay at jobs for 3 to 4 years, with median tenure being 4.1 years in 2022.

Younger workers have less job tenure, with those aged 20 to 24 staying less than a year and a half on average.

Job hopping is more influenced by age than generation, with similar quit rates across different age groups.

Long-term loyalty and tenure can lead to higher compensation and senior positions within a company.

Focus on skill acquisition rather than job tenure or compensation for career progression.

Employers are increasingly understanding of job changes, especially for learning and career advancement purposes.

Transcripts

95% of American workers said they planned to look

for a new job in 2024.

Money's a big part of this. 45% of American

workers say they need a higher income.

Job switchers increase their salary more quickly,

on average, than those who stay put.

In February 2024, people who stayed at their job

for more than three months increased their

salary by 5.1% year-over -year, whereas those who

switched jobs increased by 5.9%.

I ended up almost doubling my salary after a year and

a half, and then from there, each year, I

probably increased my salary from anywhere to

$15,000 to $35,000 or $40,000.

But hiring professionals stress that it's important

to be strategic about job moves.

You don't want to rise up the ranks too quickly and

then be this expensive head that's sort of easy

to chop in any kind of downturn.

I think companies do expect an unrealistic

level of loyalty, but unfortunately we're at

their whim a lot of times, right?

So we do have to play the game, and that game is

making it seem like you're going to spend the

rest of your life there. They really do want to be

lied to you.

So how long is the optimal amount of time to stay at

your job for your career advancement, salary, and

your well-being?

The survey data about why people leave their jobs is

pretty consistent across the board.

Ranking at the top of the list are wanting a higher

salary and not feeling like they have room for

growth at their current job. The desire for higher

salaries may lead people to job hop, which is when

a worker jumps from job to job within a short

period of time.

Oftentimes, switching companies is the fastest

way to get to that next level role in terms of

seniority and in terms of your income level.

And the reality behind that is in your current

company for you to get promoted, for you to get

to the next level, that position needs to open up

in a way that it's either someone leaves or they get

promoted or the company is growing.

Gen Z is 36% more likely than other generations to

prioritize advancement opportunities.

Even if there are opportunities for

promotions within their current workplace, they

may still find it easier to leave.

A lot of employers are reaching out to people and

recruiting them.

Workers have more negotiating power that

way. You can also find out more easily what wages

are available just by, you know, going on

ZipRecruiter and looking at job postings, whereas

perhaps finding out what the opportunities are

within your company involves sort of an

uncomfortable conversation with your

manager.

Other common reasons for leaving are to get better

benefits to escape a toxic work environment,

and for better work life balance.

The ancillary thing is, if I pay people more, would

they be happier?

If that were true, then investment banks and

private equity firms law firms would be the

happiest places in the world to work.

They notoriously aren't viewed that way because

there's a certain way that you treat people,

whether it's benefits or whether it's time off or

compensation or, quite frankly, just how you

treat people on a day in and day out basis with

interpersonal skills.

Those are the things that end up being more

important.

Workers also have career aspirations that may not

be fulfilled in their current positions.

Early in my career, I always had the goal of

eventually working for myself. So I told myself

around the age of 30, try and get enough experience

and exposure to the things that are required

to have a consulting firm.

So each job that I've worked, I've always left a

company, if I felt like I had already obtained the

skill that I needed to obtain. And if I wasn't

getting opportunities to obtain the skills that I

needed, I went to the next place.

As humans, we tend to change every 2 to 3 years

in terms of our goals, our priorities, our stages

of life. And now the younger generations ask

themselves, well, how does my career serve me

and not the other way around?

There's never a wrong reason to want to leave.

If you want to leave, you can leave, right?

But you have to be smart about leaving.

Americans consistently stay at their jobs for a

median of 3 to 4 years.

In 2022, the median tenure was 4.1 years.

In 2002, it was 3.7, and back in 1983 it was 3.5

years. But breaking those numbers down by age paints

a clearer picture about how long Americans should

stay at their jobs.

Between 2002 and 2022, workers aged 20 to 24

typically stayed at their jobs for less than one and

a half years. As you look at older workers, the

median tenure increases with each age group.

I think a lot of people think of job hopping as

being generational, but it's actually more driven

by age than generation.

So our parents generations at the same

age as young people today, a lot of the data

shows that they quit at very similar rates.

A Bureau of Labor Statistics study found

that American adults born between 1957 and 1964 held

an average of 12.7 jobs between the ages of 18 and

56, with nearly half of those jobs held before the

age of 25.

I think the idea that you have to stay at one

company for an extended period of time comes most

probably from our families and our parents,

because their expectation and their version of

success was to stay within one company, or at

least within one career, their entire life.

Our parents would get pensions, they would work

for a company for a certain amount of time,

retire and be paid for the rest of their lives.

So the incentives have shrunk and so the loyalty

is just not there.

Another thing to consider is a lot of benefits

accrue over time. So if you switch companies too

quickly, you could be leaving money on the

table. For example, some employers won't allow you

to keep your 401(k) match until you've been there

for a certain number of years.

I see a huge wave of Gen Z and millennial

professionals asking themselves: is this job,

is this career right for me?

And what do I want for my career to look like and to

feel like and where do I find this career?

Versus feeling like I have to stay doing what

I've been doing in my career.

Recruiters say there's more leeway for job

switching earlier in your career.

Gen Z can do that right now because they're in

their early 20s, but when they get to their late 20s

or their early 30s.

They can't be moving like that. You're 22 years old.

You're not making any career mistakes right now.

There are so many places that you could go, and

none of them would be a mistake. Because you're so

young and you have so many years to figure out

what you want to do.

When you're 35, not really right?

Ideally, you're in your career and you're making a

good salary with great benefits.

And once you have that, you need to be more

strategic and intentional about those moves that you

make, because now you can make a really bad career

mistake.

Instead of asking how long you should stay at your

job, career experts suggest shifting your

focus to how much you've accomplished. I think the

biggest risk with job hopping or leaving your

job too early is you not understanding where you

are in your development.

And that's why I try to tell people remove your

focus on money, especially if you're being

compensated okay, and you're able to pay your

bills and survive.

Don't focus on just getting a huge pay bump

before you are actually ready, before you have

gained the right skills.

Don't focus on time.

Don't focus on money.

Focus on skills.

And if you are comfortable in the skills

that you are acquiring, then you are ready to move

on to the next level.

Workers may also want to consider looking at their

career as a whole, rather than honing in on only

tenure or compensation.

I took a $20,000 pay cut when I dropped hopped the

first time, and I knew that was okay because it

would come back tenfold based on the experience I

was going to be getting at the new place of work.

So I don't focus on the money.

And I know that's a privileged thing to say

because my roles compensate me well.

And at the time when I started in my career, I

just really shrunk my cost of living.

I would say I lived in a house with seven other

people and my rent was like $500.

So after I took the $20,000 pay cut, I ended

up almost doubling my salary after a year and a

half. And then from there each year, I probably

increased my salary from anywhere to $15,000 to

$35,000 or $40,000.

And now that I'm an independent consultant, I

mean, this is the most that I've earned ever.

While it could deliver a quicker pay raise to

switch jobs, often long term loyalty and tenure

are rewarded in the end.

And so if you look at the top five highest paid

people within a company, they're often the veterans

who were there from the start. The company may

only want people in senior leadership

positions who have a demonstrated track record

of reliability, of sustained performance, and

of loyalty to the company. Companies don't

do promotions that often.

They might do them once a year, twice a year.

And so if you have only stuck around two cycles,

but the company has a policy of promoting people

about once every three years, you know, you may

miss out on that big payday if.

You are not a self-aware person and you don't do a

lot of introspection for what you are and are not

ready for, job hopping is not wise in my opinion.

If you're not really able to assess your true skill

set, it's going to be hard for you to get the

opportunities that you want or reach your end

goal.

Timing and the broader economy are important

factors as well. How difficult would it be to

find a new job.

In January 2024, the Glassdoor Employee

Confidence Index fell to its lowest point since

2016.

You need to figure out like the strategy before

you give that notice, because it is taking

people 6 to 12 months to land a new position.

A 2023 survey from Insight Global revealed that 55%

of unemployed adults said they've been searching for

a new job for so long that they are completely

burnt out. This trend is hitting Gen Z the hardest,

with two-thirds of them suffering from application

burnout. But 75% of Gen Z workers would quit their

jobs without having a new one lined up.

I personally would never leave a job if I don't

have another opportunity already lined up.

Another part of being strategic is thinking

about how employers are viewing a candidate's work

history.

For employers, turnover is challenging and very

expensive because hiring realistically takes a lot

of time and a lot of resources.

90% of organizations are concerned about employee

retention. Helping employees upskill is a key

component to retaining talent.

Companies with strong learning cultures see

higher rates of retention, more internal

mobility, and a healthier management pipeline

compared to those with smaller levels of

commitment.

But there's also a goldilocks dynamic to

this. Sometimes companies don't mind turnover.

People think that employers don't want any

turnover. I disagree with that belief, and I think

the companies that don't want turnover are actually

creating more problems and mistakes, because that

would imply that every person you hire was right.

And I have never met anybody who's perfect at

anything.

There are many industries that don't seem to mind

high turnover very much.

But some companies may be taking on a more forgiving

attitude when viewing work history.

I think employers are very, very suspicious of

workers who switch jobs for a tiny incremental pay

raise, but they understand if people are

pursuing opportunities to learn more, to sort of

advance their careers, to get broader experience

with some career goal in mind.

I think the people who are in hiring positions now

that are millennials and 15 years into their career

have just a lot more empathy than older

generations, and they don't expect the lifelong

loyalty that older generations expected.

Most people realistically have some sort of a gap on

their resume, and the longer you are in the

workplace, the higher the chance that you will have

a gap, or you will have a short-term, three month

experience on your resume because that didn't work

out. Employers are human, and they know that.

They understand that. And the chance that the hiring

manager that you're talking to has gone

through that themselves is actually very high.

You have to figure out what is the best decision

for you. And the only person who can do that is

you. And people come to me all the time, like,

just tell me what to do.

And I tell them, I can't tell you what to do.

I can tell you like what I would do in this

situation, but I can't tell you what to do

because this is your career and it's going to

affect you.