Loyalty to Employers Leaves U.K. Millennials Out of Pocket
via Bloomberg Quint : Loyalty to employers leaves U.K. millennials out of pocket
Millennials may have a reputation for job hopping but new U.K. research shows that the reverse is true. And that’s hitting their pay packets.
One in 25 Britons born in the mid-1980s moved jobs before turning 30, about half the rate for those who were born a decade before them, according to data compiled by by the Resolution Foundation. That means they’re not benefiting from the double-digit pay rises that earlier generations gained by changing employers.
The report also confirms that millennials aren’t seeing the rewards of staying with the same company longer — something the research group suggests may stem from a lack of confidence in looking for work. The annual real pay increases companies offer to their long-serving staff at this age has fallen from around 4 percent to near zero.
“Young people are prioritizing job security and opting to stick with their employer,” said Laura Gardiner, a senior policy analyst at the Resolution Foundation. “With the typical pay rise for a job mover in their mid-20s at around 15 percent, and evidence that employers have essentially stopped rewarding their long-serving staff with real annual pay increases, such job loyalty can be very costly.”
The data follows research published earlier this month that showed by the time they turned 30, millennial men earned 12,500 pounds ($15,600) less than the generation before them as they shifted into lower-paid employment.
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