I have been at the same company for 5 years and my base has gone up about 18K total. Friends who moved companies twice are making 30 to 40K more. Is loyalty costing me money, or will tenure eventually pay off?

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I've noticed this as well. I've stayed at my current job because I'm comfortable but I'm noticing that my wages are stagnant and have been for a long time. I don't want to leave my job, but I feel like I have to in order to grow in my salary.

I think you know the answer to that question based on the numbers you gave. Loyalty may have paid off decades ago, but it's not how things work anymore, at least not at most businesses. Companies pay more to attract new hires, and the best way to grow your salary quickly is by taking advantage of that.

Yeah, man, loyalty is absolutely costing you money in terms of raw base salary; pretty much every data point out there backs that up. Over five years, an 18K total increase works out to roughly 3-4% annual raises on average (depending on your starting point), which is standard for internal merit increases. Companies budget tight for existing employees because they know most people won’t leave over it.

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