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The reason is fairly straightforward. Companies get more bang for their buck with new hires. They can pay 20k to get a new hire. Or they can pay their entire s
by JamesBarney 7y ago
The reason is fairly straightforward. Companies get more bang for their buck with new hires. They can pay 20k to get a new hire. Or they can pay their entire staff 20k more each to reduce their turnover by one employee.
- SomewhatLikely 7y agoIt still doesn't make a lot of sense. There's a lot of risk in a new hire because you can only vet them so well. On the other hand you know how good your current employees are and they have very valuable internal knowledge you couldn't pay for if you wanted to.
- JamesBarney 7y agoSure, improving employee retention is better than improving employee acquisition, but it's not 10x better. Each dollar just goes so much farther towards acquisition than retention. Basically money is a more important to people when they decide which job to take than when they decide whether or not to quit.