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I guess such employers strategy is taught at business schools. My ISP or mobile operator also gives much better offer to a new customer as compared to the exist

I guess such employers strategy is taught at business schools. My ISP or mobile operator also gives much better offer to a new customer as compared to the existing one. The question is if it works, that is if people indeed prefer stability and status quo so much that they are ready to earn less or pay more for a service. Probably this is not that easy to verify, as, for instance, employee might indeed stay and get lower compensation, but would also be less productive (if they fire me, I'll just find something else, probably better paid) and less creative (they pay me less, I have no incentive to improve "their" company).

ivanhoe 8y ago
> The question is if it works, that is if people indeed prefer stability and status quo so much that they are ready to earn less In IT I seriously doubt it since it's so easy to take a leap forward. And it's a huge question who are those people who choose to stay even when they feel unrewarded? If they do it for a fear of change or just being too lazy or unmotivated to bother with it, it can become a huge problem for a company. As those employees hang around and climb the hierarchy such bureaucratic mindset can seriously hurt company's agility and water down everything.