New report finds workers are prioritising job stability over mobility, as job changes emerge as a greater financial risk
Employees are now seeing job hopping as a financial risk as they put more focus on job stability over mobility in the wake of layoffs and economic pressure, according to a new report.
Job hopping refers to the practice of changing employers or roles frequently, usually within a year or two, in an attempt to secure higher salaries or higher positions at work.
But a new report from MyPerfectResume shows that the benefits of job hopping may no longer be as significant as it did before, with 43% of workers in the poll noting little or negative financial improvement from their most recent job change.
On the other hand, just 35% of employees reported meaningful financial gains after leaving their previous job.
"Workers are realising that career mobility no longer guarantees financial mobility," said Jasmine Escalera, Career Expert at MyPerfectResume.
"For years, changing jobs was viewed as the clearest path to higher pay and better opportunities. But as inflation continues to outpace wage growth and economic uncertainty reshapes the labour market, many people are becoming more cautious about taking financial risks that may not deliver the payoff they once expected."
The financial ease of staying put
According to the report, 56% of employees now believe that switching roles today carries a greater financial risk than it did three to five years ago.
Nearly half (49%) also said staying in their current job is the safest way to maintain income, with those who believe changing jobs is the best path to higher earnings down to just 19%.
"This represents a significant shift from the mindset that dominated the labour market just a few years ago, when workers frequently changed jobs in pursuit of higher pay and stronger leverage," the report read.
Job hugging already present
The findings come in the wake of widespread layoffs across the world and poor employment sentiments in the workforce, leading employees to a practice known as "job hugging."
The trend, which emerged over the past few years, refers to employees' practice of staying in their current roles out of fear and economic uncertainty, rather than genuine engagement or career ambition.
But experts have cautioned employers on being complacent because employees are job hugging, warning that they can still switch jobs if they remained dissatisfied in their current workplace.
According to MyPerfectResume's report, money is still the biggest driver of career decisions, and 32% of employees already think their most recent compensation change fell slightly behind costs, with another 17% saying it is "significantly" behind costs.
Matt Bohn, senior client partner at Korn Ferry, also previously pointed out that employers can end up becoming "comfortable perches" where employees are in holding patterns.
"Firms run the risk of becoming comfortable perches from which workers can jump when the time's right," Bohn warned. "That's the danger of this job market."
