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The days of working with a single company throughout one's career are long gone, but staying at a company for even three to five years also seems less common. Nowadays, the lure of making more money and working with cooler technologies is reason enough to jump ship.
In the employees' defense, companies in the past couple of decades have not exactly been loyal to their employees either. Layoffs and downsizing are all too common in our industry. In fact, in the past couple of years, many IT companies staffed up beyond their means in order to get a piece of the Internet gold rush action and as a result have had to downsize recently.
Are the crazy times of the high-tech job market settling down? If so, should Java/Internet developers buckle down? My feeling is yes.
In the past few months, we have seen a major shakeout in our industry. Many dot-com start-ups with poor and excellent business models alike have shut their doors or announced major layoffs. While this probably hasn't affected many Java developers yet, it is bound to, sooner or later. On the Java front particularly, it is common to find people with two or more years of hands-on Java experience; these individuals were quite rare a year or two ago. As the market tightens up and the demand and supply for Java developers evens out, employers will become more picky about who they hire and how much they are willing to pay. They will also look more closely at candidates' employment histories (e.g., how much they have moved around). And many companies are shying away from contractors, who might leave them high and dry in the middle of a project.
Remember, the grass is not always greener on the other side. Many companies that were offering outrageous sign-up bonuses or hourly rates have gone out of business. If you are with a good organization that treats its people well, my advice is to stick with it. However, if you are considering new opportunities, look for companies that have sound business models and are making money, not just companies that are inventing something cool.