Job Loyalty Yields Benefits

Research suggests that there are benefits for employees who are loyal. Employees who work for a single company rather than job-hop, tend to be better compensated. According to a Stanford University study, most workers benefit if they stay put for five to ten years. Employees who job-hopped typically received raises of 5% a year, whereas employees who stayed at least five years with a single employer typically received raises of 8% a year. Although this research was conducted only on software employees, Kathryn Shaw, the conductor of the study, says that she also found a similar pattern among workers with relatively less desirable skills, such as car windshield installers.

Most employees are better off if they stay at the same company for 5 to 10 years. However, Shaw does provide an exception – young workers. She believes that young workers should search for a company that “offers the right match for their talents and interests.”

Research also indicates that loyal employees tend to be more creative and productive. Mark Keefe, a human resources manager at Atlantic Health System, says, “[t]he more that you’re familiar with the organization… the more you can look at it and say there’s another way to do it.” Atlantic retained 98.5% of its employees last year by merit-based pay increases that are higher than competitors as well as other incentives.

To read more about the benefits of staying loyal, please read the Wall Street Journal article written on June 21, 2011, entitled “A Health Dose of Loyalty: Being Loyal Is Our Innate State, Scientists Say; It Yields Benefits” by Shirley S. Wang.


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