Fast Company
Follow
The cruel ‘loyalty tax’ blindsiding workers who stayed at their jobs for years
The traditional concept of cradle-to-grave jobs and employer-funded benefits is no longer applicable in today's labor market, where employment precarity is a harsh reality. Many longer-tenured workers are caught off guard when they receive layoff notices, despite believing their seniority made them immune to job cuts. This misplaced confidence costs them an emotional and professional "loyalty tax," as they struggle to come to terms with their dismissal and find new opportunities. According to Careerminds, a workforce staffing company, longer-tenured workers who are laid off often experience debilitating setbacks due to their lack of preparedness. A survey of 900 people who lost jobs they had held for at least five years found that 76% had considered their employment secure before being laid off. The survey also revealed that many respondents had rejected outside job offers and let their resumes and professional networks become outdated, making it harder for them to bounce back after being laid off. The "loyalty tax" penalizes longer-tenured workers in several ways, including their lack of preparation for job hunting and their reliance on their employer for security. Employers can help minimize the shock and struggles of longer-tenured employees by providing financial assistance, such as severance pay, and professional support, such as outplacement services and career coaching. By acknowledging the loyalty and effort of longer-tenured employees, employers can make a positive impact on their transition to new roles and help them navigate the challenges of job hunting. Overall, the article highlights the need for employers to be aware of the challenges faced by longer-tenured employees and to provide support to help them transition to new roles.