Why staying in your ‘safe’ job is costing you $5700 a year

May 15, 2026 — 5:01am

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In today’s uncertain economy, there is something comforting in having a safe job.

It sometimes feels like our headlines are inundated with news of mass lay-offs, claims that artificial intelligence is going to take your job, and recently, a risk of impending recession. So, it’s no surprise many see secure employment as a victory.

But what if I told you this could come at a cost? Research from e61 Institute finds that job switching is associated with pay increases 9 percentage points higher than staying in the same job. For the average worker, this amounts to $5700 per year.

This is because when your company hires externally, it has to attract talent and match market-level wages. When you stay, they only have to give you a small percentage pay bump, if at all.

You may be doing the same work as a new hire sitting next to you (or probably even more) but earning less simply because you have been there longer. Economists refer to this as a “loyalty tax”.

The job-switching effect is even bigger for younger workers. It is estimated those aged between 21 and 34 years old gain $7500 more per year from switching, compared to job stayers.

Whatever you do, don’t........

© The Sydney Morning Herald