3 ms·
Usually the replacement is at market rate, ie. the amount OP got at the new place.
by jedberg 4y ago
Usually the replacement is at market rate, ie. the amount OP got at the new place.
- bink 4y agoAnd they lose the money they'll spend on recruiting and training, so it costs more in the long run.
- lesuorac 4y agoI'd love to see some numbers behind that. The article calls out nearly 15%/job when switching vs 3%/yr from staying. A 12% gap adds up fast.
- bink 4y agoI'm comparing the costs of hiring a new employee versus offering a raise. The assumption is that most people will leave if they get an offer that includes a 15% raise rather than stay and only get 3%.
- lumost 4y agoCompanies with these policies often end up in an uncomfortable position that they start lowering expectations to market. Over time this problem becomes bigger as the company can’t offer competitive wages anymore as the gap with existing employees is too large. A startup that started 1-2% band adjustments in 2016 probably pays half the market rate for the same talent in 2022.