Many young professionals move from one job to another until they find the perfect role and environment. 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 be, people neglect the financial drawbacks of the job-hopping majority of the time.
What is Job Hopping?
Job hopping is a term that has been used for those individuals who used to switch their jobs after completing a small term in a company.
These people tend to change their jobs frequently according to their wishes rather than for reasons like layoffs or the company being shut down.
However, this practice was more in trend a few years back. Nowadays, it is not considered good at all, and most companies do not consider the job applications of such individuals.
Job hopping puts a negative impression on someone’s resume. At the same time, a few employers are still open to hiring individuals who generally do job-hopping.
Overall, companies do favour only those candidates who can serve for a longer duration for their business growth.
Impacts of Job Hopping on your Personal Finance
In this article, we have mentioned the impacts of job-hopping on the finances and careers of professionals.
1. 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. There may be a few weeks before you find what exactly is your passion. You may take out loans in Ireland with no credit check facility, which will help you during this phase.
2. Fewer Opportunities
Managers aware of your record will take time to build trust even if you are hired. A new person with a record of jumping ships is not the candidate 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.
3. Job Security
The pandemic is a recent lesson about the importance of job security in life. Millions worldwide lost their jobs because the business wanted to cut costs. The management will protect the employees with a long tenure with them.
You might be the first to leave if you have recently joined the organisation. And there is no point in arguing 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.
4. 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 a job or just a day to relax. Ask HR about the policy and take your days off if they will not pay for it.
5. 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 be 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 funding options from responsible money lenders in Dublin to get temporary financial support.
6. 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.
7. Lifestyle
A 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 more money will be spent.
Some people experience lifestyle deflation once they leave a job. In those situations, sharing the financial troubles with the other half is better. 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 searches for in their desired candidate. You may have every skill set in the book.
Still, there will be many rejections in the interviews. In addition, the financial impact is quite evident with unemployment and limited professional growth.
Job hopping may be good if you find any employer misbehaviour or any other problem. Still, it is not a good option to choose if you do just to make profits or gain more salary.
In a nutshell, you should forward every step carefully. Job hopping is still a wrong concept if you do it intentionally. To make your resume strong, keep it out of it and make a good impression in front of new employees.
Caleb works as a senior content writer at Financealoan for the past 3 years. He is a writing enthusiast and invests a good time in exploring and writing about financial trends. His keenness in exploring a topic to create a research-based piece is simply unmatched. He believes in including a texture of authenticity with real-time examples and facts.
Caleb’s blogs and articles reveal deep-seated knowledge and expertise. His educational qualification forms the base of his excellent command over the industry and Jargon. He is a postgraduate in Finance and is currently involved in exploring the world of the stock market.
