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Grass Is Not Greener: When Staying Put in a Job Pays Off

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At some point in your career, you will invariably face a choice of staying with your current employer or taking a job at a new company. The enticement could be better pay, rosier opportunities at the new firm — or to escape a toxic work environment. But is it necessary to change employers to move ahead? And how do the benefits of moving firms compare to upward mobility at your current employer?

In their research paper, “Shifts and Ladders: Comparing the Role of Internal and External Mobility in Executive Careers,” Wharton management professors Matthew Bidwell and Ethan Mollick found out that employees receive the greatest long-run benefits by taking different roles at their current company. “It is those internal moves that lead to advances in pay, rank and responsibility, and provide long-term gains in pay and satisfaction,” Bidwell says in this interview with Knowledge@Wharton. By contrast, switching employers led to initial increases in pay but smaller career advancement benefits. Moreover, the number of times that workers moved across firms had little impact on how they were paid in the long run.

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