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Is Corporate Loyalty Now a Hidden Tax?
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Subscribe16 JUN 2026 / BUSINESS
The concept of "loyalty tax" has emerged in companies wherein long-serving employees assume that their tenure will shield them from job cuts, stagnant wages, obsolete competencies, or loss in market remuneration. A survey of laid off workers found that many believed their loyalty would protect them, and were unprepared when layoffs occurred. This narrative is particularly dominant in big firms like PwC, KPMG, and Morgan Stanley which regularly rebalance their headcount responding to market shifts. The shift encourages employees to manage their careers as assets, maintaining up-to-date resumes, skills, and robust professional networks while balancing loyalty to companies with career preparedness.
Loyalty used to feel like a safe seat at the table. Stay late, learn the systems, train the new hires, carry the institutional memory, and maybe the company returns the favor when the budget gets tight. That deal now looks shakier than a spreadsheet built...
Until next time…
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