Why is Job Hopping Not Good for Your Finances and Career?

Many young professionals move from one job to another until they find the perfect role and environment. The employers find it difficult to trust someone with a long-term plan if their resume has too many short tenures. Consequently, you will find it hard to get a job unless the credentials are perfect for the profile.

It is recommended only if you have difficulty selecting a permanent profession. Sometimes, the raise offered is too good to turn down. Whatever it may, people neglect the financial drawbacks of the job-hopping majority of the times.

In this article, we have mentioned the impacts of job-hopping on the finances and career of the professionals.

Unemployment Time

As mentioned above, your resume will not be preferred by the managers. You may not get shortlisted frequently based on the qualification alone. Therefore, the unemployment phase may last longer if you don’t have a job before quitting.

You will live on the savings until you find a new job. It may take a few weeks before you find what exactly is your passion. There are guaranteed loans for unemployed that will help you during this phase.

Fewer Opportunities

Even if you are hired, managers aware of your record will take time to build trust. A new person with a record of jumping ships is not the candidates for critical responsibilities. Everyone has to prove their reliability and loyalty before being trusted.

This reduces potential opportunities and underutilisation of skills in the workplace. Your career graph might face a plateau for some time because the existing employees will be preferred for promotion. Your paycheque will remain small along with the designation below the name.

Job Security

The pandemic is the recent lesson about the importance of job security in life. Millions across the world lost their job because the business wanted to cut cost. The management will protect the employees with a long tenure with them.

You might be the first to leave if you have joined the organisation in recent time. And there is no point to argue against the employees who know the ins and outs of the business better than you. Those people have a stronger relationship with the management and organisation.

Vacation Time

Many organisations pay their employees for unused vacation days as reimbursement. You either take time off without salary deduction or work to have some extra income. However, your employer might not have the same terms in the job agreement.

You will lose the vacation time if they are not used before switching jobs. It is a benefit that should be used while searching for the job or just a day to relax. Ask the HR about the policy and take your days off if they will not pay for it.

Days Off for Interviews

You might have to take days off for the interviews if the process lasts more than your break time. The final paycheque will suffer because of the leaves. A reduced income means the finances will tough till the next paycheque.

There are many ways you can reduce the number of days off from work. Ask the potential employers to conduct interviews during the break or after hours. If possible, use video conferencing for the interviews.

Another solution is to save enough money before job hunting. The savings will cover the bills and other expenses in between the job change. You can also apply for quick loans in the UK to get temporary financial support.

Lost Investments

The unemployment phase might leave you with no space to continue the investment or mortgage repayment.  You no longer can afford the retirement fund until a new job is secured. You are also forced to sell the investment to make a living if the savings account is all used up.

You should always leave a job after securing financial commitments. Getting a job before the resignation is always a smart idea. Also, start aggressive savings to manage the investments and debt repayment during the unemployment period.

Lifestyle

Salary hike is one of the most common reasons for job-hopping. You may think the finances will get easier to manage after the raise. However, your spending will also increase as there will be more money to spend.

Some people experience lifestyle deflation once they leave a job. In those situations, it is better to share the financial troubles with the other half. They might support you by restricting your expenditure until you receive the next paycheque.

To Conclude

To sum up, loyalty and reliability are two traits every employer search in their desired candidate. You may have every skill set in the book. Still, there will be many rejections in the interviews. And the financial impact is quite evident with unemployment and limited professional growth.