There was a time when loyalty with one’s firm was rewarded with promotions, but with reducing layers of management, executives are increasingly moving from one company to another. The findings of a research regarding the phenomenon of job switching have been presented here in form of four common fallacies.

Fallacy 1: Job Hoppers Prosper

The research shows that the footloose executives are not upwardly mobile than those who stick to a single firm. The notion of faster promotions by shifting jobs is reinforced by career counsellors. An analysis of 1001 CEOs in Europe and the U.S. reveals that on an average, they have worked for just three employers, while a quarter of them have been with a single firm throughout their career. A comparison of inside and outside moves of 14000 non-CEO executives revealed that inside moves resulted in faster promotions. This is backed by the rational that companies face less risk in promoting an insider who is much better known to them vis-a-vis an outsider. According to a consultant, anything less than 3 years isn’t sufficient to make significant contribution to a firm. Also, certain countries are extremely resistant to candidates having a history of frequent moves.

Lessons for executives

Search firms prefer resumes having balance between external and internal moves. Also, since remarkable proportions of executives succeed by being stable with a company, cross-employer moves should only be given thought to if they considerably increase employability.

Fallacy 2: A move should be a move up

A job shift doesn’t necessarily follow an upward path despite the perception of this being true. The analysis shows that about 40% of the executives had upward movements, the same percentage had a lateral movement and 20% had downward moves. Lateral moves can sometimes enhance CVs unlike downward moves, if the firm has an excellent networks and high brand value. Robert, for example, switched job from managerial position at an industrial maintenance company to a consulting role at another. The new offer brought opportunity for Robert in the executive ranks.

Lessons for executives

A slow upward movement having a mixture of lateral and upward movement is more preferable than fast upward jump. Many companies while considering for executive positions, look for employees who switch between functional tracks. This ensures that they have a knowledge of all the domains of the business.

Fallacy 3: Big Fish Swim in Big Ponds

The data reveals that executives leaving the well known companies often join the lesser known ones. In the research, 64% of the executives who left Fortune’s most admires firms joined the ones who were not in the list. Individuals leaving a well known firm for a lesser recognised one, cash in on their previous company’s brand value and gain better positions. While those joining a more known firm are ready to take a step down.

Lessons for executives

Joining a well-regarded company in early stage of the career is considered best as search firms think of employees’ competencies as being equivalent to the brand of their firms. Shift should be made to a less recognised company only when the salary hike, jump in title and appeal of the opportunity is convincing enough.

Fallacy 4: Career and Industry Switchers are penalized

Changing one’s industry isn’t always a bad decision. 29% of moves change the industry of people and 23% change the segment. Superior human capital is one reason driving firms to hire employees from different business. Candidates lacking industry experience may satisfy other needs of the hiring firm. Also, a company needs to expand its search if the number of interested applicants is low.

Lessons for executives

Executives should look for industries where their skills would be an important asset. Specialisations difficult to find enable one to charge premium. Transitional jobs that enable one to get closer to their career goals should always be considered.