Frequent job changes by employees may adversely impact vesting in employer-sponsored retirement plans as cliff vesting or graduated vesting schedules may apply to defined benefit or defined contribution plans, thus limiting employee ownership of employer contributions and any associated earnings inside of employer-sponsored retirement plans at the time of employment termination. Additionally, benefit accrual in defined benefit pension plans may be severely limited unless significant years of service are accrued by employees with the same employer, an unlikely outcome if job changes are frequent.
These potential disadvantages must be weighed against the potential advantages of a new job, including increased compensation, enhanced employee benefits, improved lifestyle, acquisition of new or expanded job skills and knowledge, and / or career advancement.