mesaEmployees Who Stay In Companies Longer Than Two Years Get Paid 50% Less
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Article is nearly 10 years old.
Article contains no studies or surveys showing this result.
The 50% figure is calculated by assuming a paltry annual raise and consistent large pay bumps by switching companies.
maegul (he/they)That being said, word is that in the tech industry at least, hiring budgets are clearly higher than promotion budgets and that moving every 2 years or so is clearly the best strategy for career advancement.
Just one industry, of course, but the pattern certainly seems to have settled in there, and it may not be a stretch to speculate it will spread to other industries perhaps under the shitty influence of AI.
Backing up “word is” by an article that says “word is” is kinda meager though. There are many things widely believed to be true that are not, or only mildly so our in specific circumstances.
Backing up “word is” by an article that says “word is” is kinda meager though.
Well I’m relaying what is basically common knowledge in the industry shared by people in the industry. The thing about promotion/hiring budgets is something I know directly or through people at their companies.
Sure, it may not be industry wide, of course, but I’ve not seen any hint of a countervailing trend or pattern. What’s more, in the tech industry, it makes sense. There’s a fair amount of pivoting which is often deemed to be done best by hiring (at least some) new staff with the required expertise/experience. And maintaining existing/legacy systems is often de-prioritised such that those who’ve been at the company for a while who understand the existing systems well are not as valued as those who may help the company “grow”. Which is why I bring up the possibility that these patterns may spread to other industries.
The countervailing trend in the tech industry is layoffs.
I’m not sure what you’re saying. The size of the labour force and the way salary “growth” relates to employer movement rate seem to me relatively independent dynamics. Moreover, I’d imagine increased layoffs positively correlate with the advantage that regularly moving employers can provide.
Am I missing something?
Some of the companies that pay the most are the same ones doing the layoffs, like Google.
Trading up for money could add extra risk exposure to layoffs.
But if every job change is seen as a pay raise opportunity, I guess layoffs are speeding the process along for you.
AFAICT, lay-offs are pretty widespread. Sometimes the bigger employers just give the smaller ones “permission” first.
I haven’t heard of any smaller companies in my network doing layoffs, but I’m sure there are some out there.
Yea interesting. I have no numbers and I’m not really “plugged in” at all … but I’ve certainly heard of smaller places doing layoffs after Google etc. No idea how widespread that is though.