This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Memo to College Grads: Quitting Your Job Is a Great Career Move

NEW YORK ( TheStreet) -- Given the state of our economy and the constant plea for more jobs, this may seem like a silly headline. But what's silly is the idea that anyone would consider leaving potentially 50% of their lifetime's earnings on the table just for the sake of showing job loyalty.

Millennials are entering the workforce with the expectation that if they work hard, good results will come. They have dreams of making their mark and seizing that corner office by climb the corporate ladder.

But these days, companies are only as loyal to an employee as they have to be. Shareholders demand higher profits and corporate leaders have no choice but to deliver -- or else.

When It Makes Sense to Take a Loan From Your 401(k)

5 Financial Stats Pointing to an Improving Economy

GoPro Future Is Foggy Despite Picture-Perfect IPO

Getting to the top of the ladder in such an environment is much quicker by jumping ship to a new company. Loyalty is what your grandfather understood. Not today. This is what Apple (AAPL), Google (GOOG), Intel (INTC) and Adobe (ADBE - Get Report) realized when they signed a pact to not poach each others talent. All four were named in an employee lawsuit, claiming they conspired to keep salaries down by not recruiting each others workers.

According to court documents, deceased Apple co-founder Steve Jobs once told Google co-founder Sergey Brin, "If you hire a single one of these people that means war." This was according to Brin's description of the conversation.

The case was settled in May for $324 million. Neither Apple or Google could be reached for comment.

Still, this is an example of the losing battle employees have against large corporations, especially in an age where unions are losing negotiating power for the workers they represent. However it also affirms the leverage talented workers sometimes forget they have. Companies are willing to "go to war" to preserve their talent. 

There will be millions of college graduates entering the workforce this summer. And many millions more entering their second year on the job. But according to a recent Forbes article by Cameron Keng, employees who stay at their jobs longer than two years are paid 50% less than those that are newly hired.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADBE $94.22 0.00%
SBUX $56.23 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs