Companies Do Not Care About Staff Loyalty (Anymore) - How Money Works | How Money Works

Nov 19, 2025

The podcast explores the dwindling significance of employee loyalty in today's job market. Statistics reveal that job tenure has plummeted to around four years, with those staying over two years often facing a 50% pay penalty. The discussion highlights how technology and automation are reshaping the workforce, driving shorter tenures. Companies lean on graduate programs for cost-effective talent and often prefer external hires to internal promotions. The ease of job switching and the rise of gig work further complicate long-term employment stability.

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INSIGHT

Loyalty Is No Longer Rewarded

Company loyalty is largely dead and long-tenure workers are skewed by near-retirees.
Full-time employees who stay over two years earn about 50% less on average than job-hoppers.

INSIGHT

Tech Creates And Destroys Jobs Fast

Rapid technological change creates new roles and makes others obsolete, reducing job tenure.
Workers in automatable roles face shorter stays as companies replace functions with machines or software.

INSIGHT

Outside Hires Bring Cheap Talent And Insights

Companies value hiring graduates from elite programs because they provide cheap labor and resumebuilding experience.
These hires also bring competitor insights and practical experience that benefit future employers.

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Companies Do Not Care About Staff Loyalty (Anymore) - How Money Works

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How many people do you know that have been with their current employer for more than 10 years? Well according to the US Bureau of Labor Statistics it’s actually 29% of people, which sounds suspiciously high until you consider that a vast majority of this group are made up of workers on the verge of retirement, which is important to remember for later.

Amongst all workers in the US the median was just over 4 years.

In fact multiple studies have suggested that full time workers that stick with their employers for more than two years on average get paid FIFTY PERCENT LESS.

This is an unbelievably large gap, ESPECIALLY when you consider that the average of the loyal working group will be drastically inflated by senior executives and the c suite who tend to have more tenure. In plain English, for regular Joes like you or me, this 50% figure is likely understated.

So why aren’t companies stopping this? Surely having to pay tens of thousands of dollars to advertise a position, interview candidates, onboard new staff, train them and wait for them to get up to speed with their new role is not sustainable if it has to be done over and over again every 2 years… right?...

Well you would think so, but there are a few reasons why companies don’t care about employee loyalty… anymore…

#Career #Jobs #HowMoneyWorks

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Link to my vid on BS Jobs - https://youtu.be/uK3OBAxCi6k

Link to my vid on retirement - https://youtu.be/Q5sF0MbfVn8

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