HRreview Header

It pays to stay: workers who spend 2 to 3 years in first job earn higher salaries over career

-

Huge decline in average time spent in first job, with millennials entering the workforce since 2010 staying on average just 1.1 years, compared with up to 5.7 years for those starting work in the 1960s

Workers who spend between 2-3 years in their first jobs earn higher average salaries over the course of their careers, suggesting a salary premium for staying put within a first role, according to new research by job search-engine Adzuna.

The study, based on analysis of 50,000 jobseeker CVs, analysed the earning potential of workers across the UK based on length of tenure in their first position, showing the pay premium on offer for staying put in a first job and revealing the optimum time to move on to a second position.

A little loyalty does give workers a long-term leg-up the salary rankings according to the findings, with workers who spent between 2 and 3 years in their first role earning an average of £37,800 per annum, and those who stuck to a first role for between 3 and 4 years averaging £37,100.

 

HRreview Logo

Get our essential daily HR news and updates.

This field is for validation purposes and should be left unchanged.
Weekday HR updates. Unsubscribe anytime.
This field is hidden when viewing the form
This field is hidden when viewing the form
Optin_date
This field is hidden when viewing the form

 

 

Meanwhile flakey first-jobbers switching positions within twelve months of starting work average earnings of just £33,000, around £4k less per year, suggesting some employers may frown on mercenary job-switching, and that this may hold back long-term pay prospects.

However, loyalty beyond the first few years doesn’t pay: workers with an average first job tenure of 4 years or more are paid an average of £35,500, £2k less than those switching earlier. This makes 2 to 3 years within a first role the salary sweet spot for new workers, beyond which the rewards on offer for staying put decrease.

Northerners make most loyal employees while Southerners switch jobs more often

The data also reveals a North-South divide in employee loyalty, with Northerners tending to stay put in a first role for longer. The North East is the most loyal region, with an average first-job tenure of 3.1 years, followed by Yorkshire & The Humber (2.8 years) and the North West (2.7 years).

Londoners are the least loyal, staying in a first role for just 2.1 years on average, followed by workers in Northern Ireland (2.3 years) and Scotland (2.5 years).

Differences are also visible between the sexes, with men tending to stay put in a first role for longer than women, at 3.9 years compared to 3.2 years.

Similarly, employees who went into the workforce straight from school show more loyalty than those with a degree, averaging 3.9 years in a first role compared to 3.0 years for university graduates.

Adding these traits together suggests that male non-graduates in the North East make the most loyal employees, while London female graduates the least.

Generational change in attitudes to switching jobs

The stats also show a huge decline in the average time people stay in a first position. Millennials are now staying in their first job for a fifth of the time the baby boomers spent when entering the workforce, suggesting changing generational attitudes to switching between jobs to climb the career ladder.

Workers who started their career in the 1960s stayed an average of 5.7 years in their first role, while those joining the workforce in the 1970s spent 5.1 years in a first position. This has since fallen significantly, with those starting a career in the 2000s staying just 2.2 years before changing employer. Recent years have seen the average first-job tenure reduce further, halving to just 1.1 years for those beginning work between 2010 and 2015.

Andrew Hunter, co-founder of Adzuna, comments:

“Switching jobs to climb the career ladder may be tempting for ambitious young workers, but patience comes with a premium. Workers who show staying power by sticking to a first role for a few years end up earning more than their flightier colleagues. Yo-yoing through a career by changing jobs often can be viewed negatively, and could harm pay prospects in the long-run. Instead, showing a little loyalty pays dividends.

“Workers are spending shorter and shorter periods within a first role, with each generation moving on more quickly then its predecessor. It used to be the norm to stay with one company for life, but now it is becoming commonplace to switch between industries and companies multiple times throughout a career. In part, the post-recession trend for shorter stints in a first job reflects the tougher jobs market. Employers have a tighter grip on their purse strings, which is forcing many workers to go elsewhere for a pay rise. In many cases, switching jobs quickly is a necessity, not a choice.”

Rebecca joined the HRreview editorial team in January 2016. After graduating from the University of Sheffield Hallam in 2013 with a BA in English Literature, Rebecca has spent five years working in print and online journalism in Manchester and London. In the past she has been part of the editorial teams at Sleeper and Dezeen and has founded her own arts collective.

Latest news

Middle East air disruption leaves UK staff stranded as employers weigh pay and absence decisions

Employers face complex decisions on pay, leave and remote working as travel disruption leaves British staff stranded in the Middle East.

Govt launches gender pay gap and menopause action plans to help women ‘thrive at work’

Employers are encouraged to publish action plans to reduce pay disparities and support staff experiencing menopause under new government measures.

Call for stronger professional standards to rebuild trust in jobs

Professional bodies call for stronger standards and Chartered status to improve trust, accountability and consistency across roles.

Modulr partners with HiBob to streamline payroll payments

Partnership integrates payments automation into payroll workflows to reduce manual processing and improve pay day reliability.
- Advertisement -

Jake Young: Strong workplace connections are the foundation of good leadership

Effective leaders are, understandably, viewed as key to organisational success. Good leaders are felt to improve employee engagement, productivity and retention.

AI reshapes finance jobs as entry-level roles come under pressure

Employers prioritise digital skills over traditional accounting as AI reshapes finance roles and raises concerns over entry-level opportunities.

Must read

Kate Palmer: What consequences does the CBI scandal have on leadership and reputation?

Is Danker’s dismissal an attempt to appease the public or a concerted effort to make the allegations plaguing the CBI simply disappear, asks Kate Palmer?

Karen Plum: Six factors to engage employees in the ever-distracted working world

How can we engage employees in the ever-distracted working world? Karen Plum from Advanced Workplace Associates delves into vision and goal clarity, social cohesion, and more.
- Advertisement -

You might also likeRELATED
Recommended to you