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NorthOaklandGuy t1_iy91x9e wrote

Reply to comment by SquareVehicle in "You'll make more money working 3yrs at a company and then jumping to a new company negotiating a higher salary than just staying at 1 company and taking your annual raises each year" by CasualFridays047

Yeah people started saying it when most large private sector employers stopped offering pensions.

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raouldukesaccomplice t1_iy9bmev wrote

Even companies that do 401(k)s in lieu of defined benefit pensions still often have a vesting period for their share of the matching funds and you could lose that money if you don't stay for at least a few years.

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NorthOaklandGuy t1_iy9clcy wrote

True but that’s usually 4 years and you usually keep something. The vesting period for employer contributions at my firm is 4 years and you get 25% vested every year. So leaving at 3 years I would keeps 100% of my contribution and 75% of my employers contribution. So yeah that does discourage job hopping but it doesn’t encourage staying put for 30 years.

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