I never understood this mindset. Why would an employer pay someone that they have to train more than someone they already have?
I understand companies only being able to afford recent college graduates, but I don't understand the reasoning behind the larger companies paying a replacement more than the person who left.
I guess they're betting on higher performance from new employees trying to prove themselves?
What I saw was that managers don't think the person would leave. Because he doesn't have the guts. Or they don't want to pay him more than a manager would earn an so on. The people that decide this are the kind of people that do not change jobs unless they have to. They think everybody else is like them or worse.
Then when the person leaves they need to hire somebody else and they pay as much as it is needed to hire that new person. So it happens because it is a two step process with two independent decisions from the management and I have yet to see a manager that realizes that the two decisions are connected. I've even seen managers doing the same mistake over and over and never learning anything from it.
I understand companies only being able to afford recent college graduates, but I don't understand the reasoning behind the larger companies paying a replacement more than the person who left.
I guess they're betting on higher performance from new employees trying to prove themselves?