Are you paying a ‘loyalty tax’ at work? Here’s what it’s costing you
Missed progression opportunities
Loyalty tax can create a phenomenon where employees who have been with a company for a long time are overlooked for progression opportunities because they are doing their current role well.
They may miss out on internal promotions, secondments, or professional development opportunities like training or leadership roles because the company prefers them where they are.
It’s almost understandable how this happens. In times of turbulence and change, including staff turnover, employers may find comfort and rely upon a loyal employee’s consistent output. Therefore, they avoid investing time and resources in training them for a new role.
However, it’s also a recipe for frustrated employees who have demonstrated their value and commitment to the company.
It’s a tough pill to swallow that being ‘too good’ at your current job earns you inertia and monotony as a reward for your efforts.
If nothing in this dynamic changes, dedicated and hardworking team members can find themselves stuck in a hamster wheel of mundane and unrewarding careers.