Sunday, July 3rd, 2022

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Does being a loyal employee pay?

Does being a loyal employee pay?

Ever wondered what is driving you to your next move? Do you think about being an “ever present” at your company? What benefits would I gain by moving jobs?

These are all questions we have asked ourselves at some point in our career and will continue to do so in the search for the “perfect” job or employer. There are arguments for and against staying with an employer for many years, but is being a loyal employee really going to benefit you in the long term? The answer possibly is, no.

Employers will always try to gain the trust and respect of their employees in a number of different ways but higher wage increases do not necessarily engender improved employee loyalty or retention. The general insurance market is competitive, like any industry, but you’d be surprised how many employers are seeking staff to fill the voids left by staff moving on in search of a “new challenge” and who see a move as the best way to enhance their career. This is often true as moving jobs and taking on new roles can empower you as a more “marketable commodity” in the current insurance market.

In today’s competitive market the fact you have moved jobs every few years for financial and professional gain and a different employer experience can be perceived as positives. Being institutionalised in one company for a long period of time could actually be harmful when it comes to employers looking to recruit their next underwriter, account handler or claims handler. But why? Well, here are some pointers to take into account when thinking of that next move:

  • Recent research suggests that replacing a member of staff costs over £30,000 – if you stayed in your current role, what increase in salary would you get? Certainly not £30,000.
  • Staying at a company too long could hinder your development and ability to understand other environments and methodologies in the industry
  • Could you increase your salary quicker and move up the salary ladder by changing jobs
  • Moving jobs and gaining more exposure in other companies will only help to drive on your career and your appeal to prospective employers

So what happens if you decide to leave and your employer counter offers you to stay? Employers are progressively realising that it pays them to try and counter act people leaving by offering them more money and promises to be loyal.

As enticing as a counter offer may appear, remember to keep a clear head and refer back to the reasons that you started to look for a new job in the 1st place and the reasons why you resigned. Ultimately there could be a number of reasons why an employer might want you to stay, which could include:

  •  It might mess up their budget to re-recruit
  • They have not got time to recruit
  • Replacing an employee can be expensive
  • It may affect their staff retention rates

There is rarely a good reason to accept a ‘counter-offer’ and stay where you are. You wanted to move; you’ve been through the recruitment process, been successful and secured your ideal job that ticks all your requirements. This is your opportunity to make that move and secure the job that will take your career to the next level, stick with it!

The economic conditions in a country can create either an “employees market” with lots of jobs and a limited talent pool, or an “employers market” with few job opportunities and lots of competition for each role. The regional general insurance market is no different and you may take the view that playing it safe and staying put in a role is better for you in the long run. However there is a strong argument that making that move now in a difficult market will help you to establish yourself as a driven and determined person and someone who takes control of their own destiny and who is willing to forge their own career path in a difficult, but moving market place.

What will YOU do?

Barker Munro, insurance recruitment specialists in Kent and the South East have established themselves as leaders in the South East Insurance market. Keep up to date with insurance jobs in Kent and other market news via our Twitter page and following us on LinkedIn for the latest jobs, news, contents, blogs and career advice.