Using money as a mechanism for alignment is not always effective or useful in creative fields. Engineers join a company for a variety of reasons, such as wanting to be part of the mission, coworkers, personal development, brand/location/perks/benefits, and so on. If somebody wants to leave, it's because they have fallen out of alignment. When people are out of alignment they can grow resentful or hard to motivate, and that in turns creates a bad state of affairs for both an employee and the company. There's an opportunity cost here where somebody could join the company who has better alignment.
Another way to look at this is that some level of turnover can be a good thing. In the same way that some universities will not allow former students to become professors in order to inject new thinking, companies benefit from new people coming in and injecting new ways of thinking into their organizations. So encouraging people to stay to maintain organizational memory is probably bad over the long term.
Using money as a mechanism for alignment is not always effective or useful in creative fields. Engineers join a company for a variety of reasons, such as wanting to be part of the mission, coworkers, personal development, brand/location/perks/benefits, and so on. If somebody wants to leave, it's because they have fallen out of alignment. When people are out of alignment they can grow resentful or hard to motivate, and that in turns creates a bad state of affairs for both an employee and the company. There's an opportunity cost here where somebody could join the company who has better alignment.
Another way to look at this is that some level of turnover can be a good thing. In the same way that some universities will not allow former students to become professors in order to inject new thinking, companies benefit from new people coming in and injecting new ways of thinking into their organizations. So encouraging people to stay to maintain organizational memory is probably bad over the long term.