> That makes no sense; successful companies will figure this out and unsuccessful companies will lose their talent I think there's a rational argument for it.

> That makes no sense; successful companies will figure this out and unsuccessful companies will lose their talent I think there's a rational argument for it. Yes they will lose some talent by not raising wages to the market rate, and maybe they will lose a lot of talent this way. But they will also keep talent cheaply that: * finds job interviews exhausting * hates negotiating * has good relationships with colleagues they don't want to lose * has a comfortable commute or WFH arrangement they don't want to change * is proud of becoming an expert / go-to-person in some part of the business and doesn't want to lose that source of social capital * is proud of product or service they have made a big contribution to and wants to "see it through to the end" * is generally impresionable and does what management want without too much complaint