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Financial Juneteenth | Study: Employees who keep the same job longer earn less money

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April V. Taylor

Forbes was recently reporting on the pay of American workers.  While it is no secret that most employees continue to earn less on average year after year, some may be shocked to learn that one of the contributing factors to lower pay is the length of time an employee stays with the same company.  Forbes is reporting that employees who are with the same company for more than two years stand to earn less than half of those who stay for shorter periods over the course of their lifetime.  The statistic is based on a career only lasting 10 years, so employees who work longer actually stand to lose more.

In terms of raises, the average employee is expected to receive a 3 percent raise, with lower performing employees receiving a raise of around 1.3 percent.  However, when the inflation rate, which is based on the Consumer Price Index, is factored in at 2.1 percent, these raises all but evaporate.  The average employee winds up receiving less than a 1 percent raise which helps support the notion that changing jobs may be the best way to increase pay.  The average employee can increase their pay by 10 percent to 20 percent simply by finding a new job.

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