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>>That's a 200%+ increase that is very difficult for even modern businesses to take sitting down. Because businesses would rather have a person leave and then
by patmcc 8y ago
>>That's a 200%+ increase that is very difficult for even modern businesses to take sitting down.
Because businesses would rather have a person leave and then hire someone at 1.5x or 2x their salary than just pay the first person 2x what they were making the year before.
This happens all the time. Employers want to have 2x people at 1x prices, and that doesn't work for long.
- arvinsim 8y agoI am not business savvy so I am curious why businesses choose to do this.
- sergiosgc 8y agoIt's very simple, really. If you only raise salaries on personnel rotation, you do not have to raise salaries of those employees that do not jump ship. You save a bundle if you have a large workforce. This attitude introduces a skew where your workforce gets progressively filled with people who do not switch jobs. It's a dangerous outcome, to be managed with care. If you get stuck with those who do not switch jobs because they are too incompetent, you have a big problem. If you manage to get those who are competent but content, and not very concerned with higher earnings, you have the ideal result: stable, competent, performant team, with controlled costs.
- deleted 8y ago[deleted]
- collyw 8y agoOne place I worked "wasn't able" to give me a pay rise, yet they were able to hire 1 and a half people to replace me (one full time and one on split between projects).
- geekbird 8y agoI had the same thing happen: They co7uldn't take me from contract to permanent at the pay rate I was getting contract, but they could hire TWO younger men to replace me (both of whom left after six months of 10 hour days, 6 days a week at lowball salary.)