A long tenure with one organization offers numerous benefits, including the ability to build trusted relationships, a deep understanding of the company culture, familiarity with the industry landscape, and comfort with direct teams and daily tasks. Establishing a set routine can be advantageous, providing stability amidst the constant changes of life. Given these advantages, why would one consider leaving their current position, organization, team, and established professional routine?
There are key pitfalls to staying too long in one company or industry. Consider the uncertainties surrounding AI and its potential impact on your profession in the near future. With significant experience in the People and Talent space, I have observed a shift from leadership’s preference for long tenure to a desire for a diverse industry background that demonstrates agility in an ever-evolving global marketplace. The key will be skills-driven adaptability—employees who can learn agile-based skills to adapt and propel their organizations forward.
Another key pitfall of staying too long in one organization is that you may never reach true market pay compared to new peers within your current organization or peers in other organizations. When you finally consider leaving, you often find that the marketplace values your experience and skill sets more highly. Many people are surprised to receive a 15% to 20% or more increase in base salary upon leaving. For instance, I once worked with an individual who had been with the company for over 10 years and had been promoted several times, eventually reaching an executive level within their business function.
Although this individual was receiving recognition and promotions, their salary never matched true market value. Their peers were earning over $50,000 more in annual base salary. Consider starting a career at the Manager level in an organization where annual salary increases are typically only 2-3%. Market rates, influenced by inflation, far outpace these modest increases. This individual received four promotions over 10+ years but missed out on the market value salary at each promotion level. Consequently, they are now below the market baseline compared to recent peers who joined the organization within the last two years. This tenured individual is the lowest paid among executive peers due to the reasons mentioned. Unfortunately, if this person were to leave their role today, their replacement from another organization would receive a true market salary, exceeding the tenured employee’s by a minimum of $50,000.
As noted above, there are indeed wonderful advantages to remaining with an organization long-term. However, there are also some clear disadvantages. Each individual must weigh their professional desires against personal life circumstances. The path is not always clear, but understanding both sides of the equation can help in making an informed decision.
