Employees with experience in the company for more than 2 years earn 50% less

Forbes magazine drew attention to an interesting topic, which is not customary to talk about: the dependence of an employee’s salary on his work experience in the company . It turns out that not 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 for the maximum salary increase of an employee. On average, in 2013, wages within companies rose by 3% . Weak employees can count on an increase of 1.3%, and the best - by 4.5%, but no more. This roughly corresponds to the rate of inflation (2.1% over the last year).

At the same time, when changing employers, the average salary increase ranges from 10% to 20%, and sometimes even more.

It got to the point that even recruiting companies recommend that employees change jobs every 2-4 years. Calculation shows that if you do not do this, then in 10 years you will earn much less.
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The graph shows the annual income over a 10-year career, taking into account the annual salary increase of 3%, as well as the schedule taking into account a job change every two years with an increase in salary of 10%. In this situation, an employee who remains loyal to an employer, in 10 years, will earn one and a half times less than his colleague, the “pilot.”



Because of the recession, many firms “froze” the salaries of old employees, while at the same time increasing the supply to new employees in order to be competitive in the labor market.

The situation with the "fines" of loyal staff is observed in many industries, including IT. Many companies are simply not ready to raise salaries to employees by 20-50%, although they may well offer this amount to a new person.