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Fully trained employees are worth more to the company. They just don't want to pay for extra value unless they have to. To get new recruits, they have to. Most
by chrisbennet 9y ago
Fully trained employees are worth more to the company. They just don't want to pay for extra value unless they have to. To get new recruits, they have to.
Most employees don't want to change jobs if they can help it and employers use that "static friction" to pay them less than market.
- Retric 9y agoDepends on the company. Some will hand out 30%+ annual pay increases to keep people at market rates. But, many companies are happy to have high turnover in exchange for lower pay.
- ryandrake 9y agoThe only company I know of that publicly makes this (bringing existing people up to market rate) is Netflix. Can you name other companies that actually do this?
- ryanbrunner 9y agoI've worked for companies that do this, although it's not publicized so I can't point you to a press release or something. Usually a very strong indicator is to look for companies who publish salaries, either publicly or to all employees. It's almost impossible for a company to underpay people when everyone knows everyone else's salary.
- anthuswilliams 9y agoI believe Adobe is known to aggressively hand out raises like this. Here in Utah, at least, it's extremely difficult to get Adobe engineers to switch jobs.
- piggybox 9y agoStitch Fix also does that, at least in the data science team.