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Staying With One Company For Over Two Years Cost Employees 50% Potential Earnings

Staying With One Company For Over Two Years Cost Employees 50% Potential Earnings

Recruiter Farid Affy’s viral post suggests staying put in your job for too long could halve your income potential in 10 years.

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The conventional wisdom that loyalty pays may not hold in the Malaysian job market, according to recruiter and career coach Farid Affy.

In a recent social media post that has gone viral, Farid referenced a Forbes article highlighting a stark reality facing long-serving employees.

The claim that has sparked widespread debate suggests individuals who remain with the same employer for more than two years could see their income potential reduced by half over a decade unless they secure annual raises of at least 10-15%.

This is a far cry from the average Malaysian salary increment of 3%, with an additional 5% performance bonus, which is particularly concerning when juxtaposed against the current inflation rate of 3.8%.

Farid’s post on the X platform outlined the issue: “If we stay with the same company for more than two years, we will lose 50% of our income in 10 years unless annual salary increases continue to increase by at least 10-15%.”

The assertion is that while many employees in Malaysia exhibit company loyalty and express gratitude for modest increases, they may be unaware that changing jobs could potentially yield a 10-20% salary hike.

Individuals have sometimes secured 30-50% increases, depending on their qualifications and industry.

Unveiling the Dynamics of Job Loyalty and Financial Growth in Malaysia

The economic downturn has been cited as a reason for the stagnation of high salaries and raises within companies.

Farid suggests that fear of job change amidst economic decline and companies’ reluctance to increase wages despite profits contribute to this trend.

Furthermore, Farid encourages job seekers to utilize platforms like LinkedIn and company websites and to look beyond their comfort zones for better opportunities.

He emphasizes the importance of leveraging the internet for job searches and not to shy away from the effort required to improve one’s economic standing.

The debate continues as to whether job loyalty truly hinders financial growth.

While some argue that stability and incremental growth within a single company can lead to long-term benefits, others advocate for the financial gains associated with strategic job changes.

As Malaysia grapples with these contrasting viewpoints, it remains clear that employees must navigate their careers with caution and ambition in a rapidly evolving job market.

Navigating Salary Growth and Career Progression in Malaysia

However, the reality of this assertion may not be so clear-cut.

According to a report by the Malaysian Employers Federation (MEF), salary increments in the country have averaged around 5-6% annually in recent years, significantly below the 10-15% suggested as necessary to avoid income loss.

Moreover, a study by JobStreet Malaysia indicates that while job-hopping can lead to higher immediate salary gains for some individuals, long-term career progression and earnings can also be significantly influenced by factors such as skill development, performance, and promotions within the same company.

It is important to note that individual experiences can vary greatly.

Some employees may find that staying with one employer allows them to build expertise and negotiate higher raises over time, while others may experience stagnation or slower growth.

Pay Disparities in Urban and Rural Settings

Meanwhile, the location also influences the availability of higher pay options, especially in smaller towns and cities.

Conversely, large cities provide higher salaries, but increased living costs accompany them.

As such, the claim that staying with one company for over two years leads to a 50% loss in potential earnings over a decade does not universally apply to all situations.

Career decisions should be based on various factors, including job satisfaction, career development opportunities, work-life balance, and overall compensation packages.

For a more comprehensive understanding of the impact of job tenure on earnings in Malaysia, further research and analysis are required.

Employees are encouraged to consider their unique circumstances and career goals when deciding whether to stay with an employer or seek new opportunities.

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