Is Changing Jobs Frequently Financially Wise?

By BankBazaar | June 1, 2018

The grass isn’t always greener on the other side. Every job has its pros and cons which you must evaluate before making a decision.

Is Changing Jobs Frequently Financially Wise?

Gone are the days when people stuck to one job throughout their life. Youngsters now see greater prospects in shorter stints with a job, often moving cities and countries to chase their dreams.

Additional Reading: Planning To Quit Your Job? Here’s How To Be Financially Ready For It

And more money is often the motivation. However, frequent changing of jobs could be hazardous to your career. Although the increments might appear promising, they could actually hurt you financially in the long run. Let’s look at some of the well-known impacts:

You May Lose Out On Promotions

Before rolling out promotions, a company takes into account the track record of an employee. So, a long-term stay with a company indicates stability and loyalty, which works in favour of the employee’s chances of a promotion.

Also, if you approach a new employer with your resume showing frequent hops, you could be viewed upon as someone lacking stability, often leading to a compromise on your position and future financial gains.

You May Lose Out On Retirement Benefits And Perks

As per the Payment of Gratuity Act, you are entitled to receive gratuity on completion of five years of continuous service with an employer. This gratuity is payable on superannuation or retirement or resignation. However, if you are a habitual job hopper, you would lose out on this benefit.

Bonuses, rewards, and increments are often given out to employees on completion of a long duration in the company. So, make sure you weigh what you are losing before you quit a job.

You Would Be Considered A Bad Investment

The decision to hire a resource is based on various factors. The cost a company has to incur to hire and train an employee is one of the aspects taken into consideration. These costs become a burden if an employee leaves very early. Hence, employers check the background of a candidate before hiring him or her.  A candidate who seems to have made many hasty moves is considered a bad investment and is often offered only a marginal salary increase.

How To Deal With The Habit Of Job Hopping

Usually what triggers an employee to look for a job change is either dissatisfaction with the pay, their boss, the work environment or simply boredom. However, remember that changing a job is not the only way to salvage a situation.

Here are a few things you might want to chew on if you are considering a job change:

You Will Have To Start All Over Again

Firstly, you must understand that employment with any organisation has its pros and cons. And unless the cons outweigh the pros, you don’t want to quit an otherwise good job and start all over again. The grass, after all, might not be all that greener on the other side. Sometimes, all that you need to do is probably talk about your challenges with your manager and colleagues.

Change Departments If You Wish To

If your profile doesn’t match your interests, consider exploring the option of working with another department within the same company. Talk to your manager and figure out if there is an opening in a department of your choice. Many companies allow inter-departmental transfers to control attrition and retain their employees.

Choose Your Job Wisely

If you take up a job in haste, your likelihood of landing up with something unsatisfactory is high. It’s common, especially for newbies, to apply anywhere and everywhere to find an entry to the industry. However, this could potentially go wrong, leading to even more switching of jobs. You can put a check on this behaviour by applying for jobs that match your skill set and offer better growth opportunities in the long run. It will help you stick longer to the job.

In A Nutshell

Don’t let minor challenges in your workplace be the reason you quit your job. That should be your last option. And before you exercise it, explore all possible options in order to get the best exposure, experience, perks, and benefits from your current job.

Additional Reading: Why Women Shouldn’t Shy Away From Negotiating Their Salary

Just so you know, we’ve got your back for everything financial – loans, Credit Cards, investments, and even great financial advice. And if you’re looking for a job change, we’ve got great opportunities too. Click the link below to check them out.

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