There was a time when loyalty with ones 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 isnt 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 doesnt 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 Fortunes 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 companys 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 ones industry isnt 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.