As we have reviewed in other posts, job hopping is not usually helpful for your career. However, there are risks to staying in one company too long. It is important to know what those risks are, and to know when it might be time to seek out new opportunities to expand your network and skillset.
Compensation and Seniority
When you work in one company, compensation can fall behind the market rate for your role. Changing jobs is often accompanied by a boost in compensation. Your firm’s management won’t necessarily have the incentive to give you the raise you would receive if you moved to a new institution. Furthermore, it’s possible that you won’t receive equity or other kinds of compensation that would be part of your package in a new role.
If you started working at a company early in your career, it may be a struggle to get recognition that your skills have expanded over the years. You may be viewed perpetually as more junior than you are. It may also be difficult to achieve the level of seniority you could if you took a new position elsewhere. It is easy for your manager to pigeonhole you as less experienced, or to take your contributions for granted without giving due credit.
You may also find it harder to get promoted to the most senior levels. If you’re staying at the same institution, receiving a promotion depends on the company having new opportunities or on senior staff leaving to create openings. In the case that someone vacates a role you want, you will then have to compete with other talent at your company and with outside candidates. Institutions value new perspectives and initiatives, and you may not be first in line for a position even if one opens.
Skillset and Network
When you stay in the same place for more than five years, you limit your ability to learn new approaches. This can negatively impact the quality of your work. Moreover, it can impede your mobility if you decide to pursue new opportunities elsewhere because your perspective may be limited. Most professionals change institutions at least a few times over the course of their careers. If you stay in one place for too long, it can make recruiters and hiring managers worry whether you are not a strong enough worker for another firm to poach. It can also make them worry that you interviewed elsewhere and were not good enough to find roles outside of your current firm. They may question if you were just good enough not to get fired but not good enough to get hired away.
Staying in one place can also limit the size and diversity of your network. Building connections is a critical part of building your career. Especially later in your career, the ability to bring clients and relationships to a role can be a critical part of your value-add as a new hire. Though it is possible to do this while working at a single firm, it is more difficult.
Changes in Management
Spending a significant amount of time in a single firm may make you a target for termination if management changes. While your familiarity with the institution and operations could be a strength under other circumstances, new managers often identify long-tenured members of the firm as obstacles to the changes they want to make. It is common for new management to clear out senior staff of an institution to make it easier to implement new approaches. If you are fired, you will then have to deal with the other risks mentioned above. You may find that hiring managers think of you as a weaker candidate because of your previous tenure.
There are many benefits to staying at a single institution for a long period of time: you may receive significant compensation in carry or stock; you can become a go-to person on your team and at your firm; you can receive plum assignments, be first in line for promotion, and get included in serious strategic decision making for the business. As you progress in your career, you should be aware of the pros and cons of staying at one firm. That way, you can make decisions to maximize your skillset and open doors to the opportunities you want to pursue.
