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%.”
Kalau stay kat sesebuah syarikat tu lebih dari dua tahun, kita akan rugi pendapatan sebanyak 50% dalam masa 10 tahun unless kenaikan gaji tahunan consistent 10-15% minimum.
— Farid Affy (@faridaffy) January 2, 2024
Ini thread 🧵 pic.twitter.com/CxJyQ1A1pY
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.
Saya ditemuduga oleh HOD dari Jerman 3 kali. Masih teringat soalan dia tanya kenapa nak change job. Dia dah bekerja lebih 30 tahun di company sama sejak habis degree. Interviewer lain juga memang setia lebih 20 tahun.
— Twt_Bajet 🇵🇸 (@twt_bajet) May 10, 2022
Saya jawab terus terang sebab nak gaji yang lebih.
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.
Dear corporate malaysia,
— Lumrah Lanyard (LL) (@LumrahL) November 8, 2023
Finding a job is not easy. People have to battle their workday fatigues and juggle home duties to apply for jobs
If it’s wasn’t important, they wouldn’t do it
Denying someone because you rasa that’s not a valid reason to job hop is peak toxicity
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.
Dekat ipoh kalau lompat nk demand gaji mmg tak byk beza. Thats why ramai stay dgn same company je.
— Grumpycats 🐱 (@twtna___) October 18, 2021
Ipoh nama je bandar, tapi tak banyak peluang pekerjaan mcm di KL. "Knp tak pindah KL?"
Some ppl mmg dh settle down ipoh, taknak hadap jam, rumah mahal, kos hidup tinggi, etc https://t.co/bEuwbGgGjn
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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