Mercor CEO says young workers hop jobs too fast, missing long-term gains

In an email to Business Insider, Foody said workers should change jobs for the "right reasons," such as when they stop learning. "Moving because the work is better is very different from moving because a logo looks good on a résumé," he wrote.

Job-hopping can boost pay quickly. Changing companies has often led to faster compensation growth. Foody acknowledged that. "Switching jobs can often be the fastest way to get a raise or a title bump in the near term, so the incentive feels real," he said.

Still, many workers are now "job-hugging" – staying put for stability after a tough hiring stretch. The term reflects a shift from the earlier pattern of frequent moves. Foody, based in San Francisco, noted that compensation there is climbing fast, especially in AI. "Everyone knows who just raised, who's hiring, and what the offers look like, so the grass always looks greener," he wrote.

Gen Z is not the first generation tagged as job-hoppers. Millennials held that label before them. Data from the Bureau of Labor Statistics showed neither generation was the most likely to change jobs at age 20, however. (Note: The original BLS data compared cohorts; at that age, earlier generations actually moved more.)

The cost of frequent job changes for young workers goes beyond lost equity. Each move resets the clock on vesting, on mentorship relationships, and on the informal trust that builds with longer tenure. For companies, high turnover among early-career employees raises hiring and training costs, and it reduces institutional knowledge. The economy may see a longer ramp to peak productivity if workers delay settling into roles where their experience compounds.

Foody offered a straightforward test for whether a move makes sense. "If the new role lets you learn more, build deeper skills, and work on harder problems, it's probably the right one," he said. "If you're just chasing a logo or a base salary number that looks slightly better, you'll likely regret it in a couple of years."