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A more realistic model would see “1 person leaving” happen every year, too. Also, “maybe 25% in recruitment” isn’t all the costs. You have to get the new hire
by Someone 5y ago
A more realistic model would see “1 person leaving” happen every year, too.
Also, “maybe 25% in recruitment” isn’t all the costs. You have to get the new hire up to speed in your company. If that takes that employee 3 months and also 3 months of the time of the remaining colleagues, that’s $50k in itself.
Finally, you can’t keep not correcting salaries for inflation for many years. The number of people leaving per year would go up dramatically, and you wouldn’t be able to get new hires.
- willcipriano 5y agoThe new hire is going to be at 105k as well. As people leave you will eventually ratchet up to the rate you don't want to pay anyway. You are right that it would probably be exponential the further wages get from market. One day a large portion of people would leave and their replacements will be less effective and cost a lot more. On the other hand, if you are a executive you can keep rolling the dice, get a nice bonus and leave yourself in two years because you know the real money comes when you switch companies.[0] [0]https://rationalwiki.org/wiki/IBGYBG https://rationalwiki.org/wiki/IBGYBG