According to an HR expert, job hopping is becoming increasingly popular among young people, and corporate loyalty no longer guarantees financial rewards.

In three years, Vera Lau, 27, has worked at three different companies. She is part of a generation that seems to be questioning the concept of corporate loyalty.

"According to Lau, "Loyalty doesn't always pay off. It's all about transactions. You're only valuable as long as you're seen as valuable. If you don't learn and earn, it's time to move on.""

""In the 80s and 90s, people were content with having a job and making a paycheck. However, our outlook on work has shifted, and our lives are no longer centered around it. Even our paychecks are not sufficient to cover our bills or purchase a home," she stated."

A May 2024 study by WorkProud found that only 23% of full-time employees aged 42 and under expressed strong interest in staying with their companies for the long term, while the percentage fell to 18% for workers aged 30 and under.

The evolving nature of workplace loyalty, particularly among younger employees, was emphasized by Rick Garlick, the lead researcher of the WorkProud study.

A recent report by Endowus and Intellect found that as many as 43% of Gen Z and millennial employees in Hong Kong and Singapore frequently consider leaving their jobs, indicating high turnover intention. The survey, which involved 1,000 employees, revealed this significant finding.

To retain the younger workforce, employers must adapt their retention strategies to meet their evolving needs and expectations, according to Garlick.

Does loyalty pay?

In a world where job-hopping is becoming increasingly popular, particularly among the younger generation, what does it mean for employees who remain loyal to their employers? Does loyalty still hold value in the corporate world?

No, according to Jerome Zapata, human resources director at Kickstart Ventures.

When employees frequently switch jobs, they may be able to negotiate higher salaries because their merit increases have a limit, and they can leverage their experience to secure better pay when they first join a company.

In previous generations, remaining loyal to an organization meant a lifetime of benefits. However, current retirement benefits are not sufficient, according to Zapata. Furthermore, early job-hopping can provide candidates with an advantage, as they bring more responsibility or perspective to their new roles.

Demonstrable loyalty is an important quality that companies look for in senior, leadership roles, while job-hopping is generally more accepted among early career candidates.

Should workers weigh the pros and cons of job hopping, as it can be advantageous for exploring new career paths or salary increases, but if done too often, they may be viewed as a flight risk, and companies may be hesitant to invest in them, according to Sumita Tandon, Director for HR, APAC at Linkedin, as shared with CNBC Make It.

Before deciding to job-hop, it would be prudent for employees to explore opportunities for career growth within their current organizations through new projects or mentors, as advised by Tandon.

Lau stated, "Professionally and objectively, I can say that it has only benefited me positively. In terms of earnings, I feel more confident, and I have a better work perspective. I can do things better, and the list goes on."

"Emotionally and socially, you face a lot of judgment, which often leads to the perception that you're weak, entitled, or just a Gen Z. These terms are often used negatively, which has had a negative impact on me."

Younger generations are rejecting loyalty in corporate culture, so companies must retain talent by offering more to their workforces, including competitive compensation and prioritizing employees' wellbeing with more flexibility, said Zapata.

"Lau stated, "The corporate world is currently triumphant, but I sense a losing struggle. It's inevitable that the younger generation, through the innovative approach to work, will ultimately emerge victorious... eventually, the man must retire.""

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