HR expert says company loyalty doesn't pay off as job hopping gains popularity among young people – NBC4 Washington

Vera Lau, 27, has worked for three different companies in three years and belongs to a generation that seems to be questioning the concept of loyalty to corporations.

“I don't think loyalty pays off… It's all very transactional. You're only valuable as long as they see you as valuable,” Lau told CNBC Make It. “If you're not learning anything and you're not earning anything, it's time to go.”

“In the 80s and 90s, the situation was very different. People were just grateful to have a job and to get a salary,” she said. “Our attitude to work has changed… our lives are no longer built on it. [anymore] and your salary alone isn't even enough to pay the bills or buy a house.”

According to a May 2024 WorkProud study of 1,000 full-time employees, only 23% of workers age 42 and under expressed a strong interest in staying with their company long-term. Among workers age 30 and under, that share dropped to 18%.

“These findings underscore the evolving nature of workplace loyalty, especially among younger employees,” said Rick Garlick, lead researcher of the WorkProud study.

According to a report published in July 2024 by Endowus and Intellect that surveyed 1,000 employees, a full 43% of Generation Z and Millennial workers in Hong Kong and Singapore say they “frequently consider leaving their jobs, indicating significant turnover intention.”

“As factors such as work-life balance and company culture continue to be top of mind for the younger workforce, employers must adapt their retention strategies to meet the evolving needs and expectations of this demographic,” Garlick said.

Does loyalty pay off?

At a time when job hopping is becoming increasingly popular, especially among young people, the question arises: where are the “loyal” employees? Does loyalty pay off in the corporate world?

According to Jerome Zapata, head of human resources at Kickstart Ventures, “The short answer is no.”

Employees who change jobs are likely to be paid better because “merit increases are only possible up to a certain point” and candidates can negotiate from a position of strength early in their careers.

“[During previous generations]if you stay loyal to an organization … it will take care of you for life. Right now, retirement benefits are not worth living for,” Zapata said. In addition, job hopping early in one's career can even give candidates an “edge,” he said, since they often come in with more responsibility or perspective.

However, there is a stigma associated with frequent job changes. While job hopping is generally more accepted among entry-level employees, for people in senior management positions, proven loyalty is an important trait that companies look for.

“[Workers] “One should weigh the pros and cons of changing jobs, as it can be lucrative if one wants to explore new career paths or get a raise. However, if one does it too frequently, it can also be seen as a flight risk and companies may be cautious about investing in them,” Sumita Tandon, HR Director for APAC at Linkedin, told CNBC Make It.

It would be wise for employees to consider whether they have career opportunities within their existing organization through new projects or mentoring before considering the decision to change jobs, Tandon advises.

“I would say professionally and objectively it has only done me good. Honestly, I earn more, I feel like I'm a better worker, I have more perspective, I can do things better, I'm more confident, the list goes on,” Lau said.

“But emotionally and socially, you have to deal with a lot of prejudice,” she added. “There's a perception that you're weak or entitled… or 'you're just a Gen Z.' A lot of those terms are used in a very negative way… that definitely had a negative impact on me.”

In a world where corporate culture is being redefined by younger generations who reject loyalty, companies can retain talent by offering more to their workforce, Zapata says — from providing competitive compensation to prioritizing employee well-being through greater flexibility.

“The [corporate world] is ahead at the moment, but I feel the battle is losing,” Lau said. “It is inevitable that the younger generation with the new way of working will eventually prevail… at some point the man will have to retire.”

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