What Is ‘Job Hugging’ and How Is It Hurting Your Wallet?
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Most people have heard of the term “job hopping,” where a person leaps from job to job quickly, sometimes jeopardizing their ability to get hired by not staying at any one job long enough. In this economy, however, where tariff-induced price hikes, fears of increasing inflation and new jobs seem scarcer, more Americans may be leaning into “job hugging.”
Job hugging is when you stay too long in a single role or company, according to global organizational consulting firm Korn Ferry. While it’s perfectly fine to keep a job you love or that is right for you over time, if you’re staying out of fear or unearned loyalty, it could be hurting you financially.
Financial Costs of Job Hugging
In the current economic conditions, where the recent jobs report shows only 22,000 new jobs added to the economy and a leap in unemployment, companies have less incentive to hand out raises or bonuses, according to Market Watch. If your job feels limiting or you’ve been waiting for the right time to jump, it may be worth looking around. Some of the costs of job hugging include:
- Lower salary growth: Those who switched jobs over hugging their job are historically more likely to earn higher salaries or better perks, according to Forbes.
- Missed promotions: People who stay put, especially if they’re not happy in their jobs, tend to stop seeking ways to promote up, whether taking on new responsibilities or learning new skills.
- Retirement impact: Earning lower wages means smaller retirement contributions and smaller employer matches.
Emotional and Career Downsides
Beyond just financial impacts, job hugging can lead to other negative conditions, such as stagnant skill development, which puts workers at risk of becoming less marketable. Additionally, it may create stress or dissatisfaction at feeling stuck and make it harder to negotiate a better salary at your next job.
Signs You Might Be Job Hugging
If you’re not sure if you’re job hugging, here are some signs:
- You haven’t asked for or received a raise in several years.
- You feel stressed at work but afraid to leave.
- You don’t seek out or you resist learning new responsibilities or skills.
What To Do About Job Hugging
If you are, indeed, job hugging but would like to seek a new job, consider trying to build your skills while in your current job, with things like certifications, classes or workshops that can make you more marketable. In this AI-leaning marketplace, learning those skills could make you more competitive at your next job.
Here are some other steps you can take:
- Benchmark your salary: Use sites like Glassdoor or Payscale to determine what you’re worth.
- Ask for raises more often: Don’t wait for annual reviews.
- Upskill or reskill: Take advantage of online courses and certifications.
- Consider strategic job switching: Consider changing jobs every few years if you can earn more.
Job hugging may feel safe, but it can silently drain wealth-building potential. Financial growth comes from balancing stability with the courage to seek new opportunities when they align with your skills and goals.
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