The Math Behind the Loyalty Penalty

Two coworkers start at $60,000. Ten years later, one earns $78K and the other earns $103K. Same work. The difference? One of them switched jobs three times. This is the math behind the loyalty penalty: why staying at one company has often meant slower pay growth, and why companies sometimes pay new hires more than the loyal people already doing the job. But in 2025, the data did something surprising. In this video: The 10-year math: 3% raises vs. switching jobs every 3 years How a $25,000-a-year gap (and about $90,000 in total pay) builds up Raise budgets vs. hiring budgets: why new hires can get paid more The "anchor effect" and how switching resets it What the Atlanta Fed Wage Growth Tracker shows, and why job stayers out-earned job switchers in early 2025 A simple yearly routine to make sure you're paid what you're worth Chapters: 0:00 Same job, same salary 0:33 Meet Sam and Alex 0:53 Running the numbers 2:00 The 10-year gap 2:30 Why companies pay strangers more 3:19 The anchor effect 3:40 What the data showed 4:11 The twist 5:30 Your yearly market value check 6:58 What Sam did 7:30 The real power move Are you a Sam or an Alex? Has switching jobs ever raised your pay? Tell me in the comments. Subscribe to Stick to the Money for a new money video every week. #jobhopping #salary #careeradvice Disclaimer: The salary example is a hypothetical scenario (3% yearly raises vs. 13% increases when switching). Wage growth data referenced: Federal Reserve Bank of Atlanta Wage Growth Tracker, 12 months ending February 2025. This video is for educational and entertainment purposes only and is not financial or career advice.