Employees Who Stay In Companies Longer Than Two Years Get Paid 50% Less

6/30/2015
Cameron Keng

The worst kept secret is that employees are making less on average every year. There are millions of reasons for this, but we’re going to focus on one that we can control.  Staying employed at the same company for over two years on average is going to make you earn less over your lifetime by about 50% or more.

Keep in mind that 50% is a conservative number at the lowest end of the spectrum.  This is assuming that your career is only going to last 10 years.  The longer you work, the greater the difference will become over your lifetime.

Arguments for Changing Jobs

The average raise an employee can expect in 2014 is 3%. Even the most underperforming employee can expect a 1.3% raise. The best performers can hope for a 4.5% raise.  But, the inflation rate is currently 2.1% calculated based on the Consumer Price Index published by the Bureau of Labor Statistics. This means that your raise is actually less than 1%.  This is probably sobering enough to make you reach for a drink.

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