The hidden costs of loyalty explained
Employees in the UK could be losing out on a 6 per cent salary increase by simply staying with their current employer and not looking around for a similar role at a different company.
UK business energy comparison service QuoteMyEnergy has investigated what it costs to remain loyal to an employer and found out that the average Brit could be banking on a salary increase of 10 percent by switching employers. That doesnโt seem like much considering the stress and insecurity that a new job might bring but when you put it against the average 4 per cent an employer receives, it could be more than worth it. That difference of 6 per cent means that the average Joe or Sarah could be earning an annual salary of ยฃ29,920 instead of ยฃ28,288 by switching employers and starting a new job. Rather than upping your savings goals for 2018, it might pay off to up your earnings instead!ย
The report also delved into other areas where loyalty doesnโt pay off, such as energy providers and telephone contracts, and found similar results to those reflected in the research findings by Citizens Advice last month. However, the study conducted by QuoteMyEnergy has taken the investigation one step further by comparing all basic costs of living, including car insurance, travel insurance, ISAโs and gym memberships to determine how much money Brits are wasting by sticking to their current providers.
Katy Sparkes, the Managing Director of QuoteMyEnergy.co.uk says: โUnderstandably, for many people the thought of switching jobs or service providers is an unnecessary hassle, or they feel a loyalty to a particular brand or company theyโve worked with for years.ย Not only is changing your lifestyle now easier than ever, whether itโs your job or your gym membership youโre looking to change, our new research shows that not switching may be costing people substantial amounts each year that they stay loyal.โ –
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