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Those aren’t market wages. Those are compensation packages awarded to long tenured employees at cash cow companies as a form of golden handcuff to keep experts
by riazrizvi 8y ago
Those aren’t market wages. Those are compensation packages awarded to long tenured employees at cash cow companies as a form of golden handcuff to keep experts on specific in-house systems. They are paid out to keep employees from taking company secrets to competitors. They work because these compensation packages are so far off market that these employees would suffer a huge pay drop if they moved. So in no way do these rates reflect the market. However it is great food for this skill shortage narrative BS.
- JanisL 8y agoI'd argue that this is closer to a market rate than it seems because, as you mention, on the open market they can go somewhere else and paying them this much is needed for them to not do that. How are you defining market rate if not by how much someone thinks they need to pay an employee to stay?