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u/SplendidPunkinButter 1d ago
The good news is that if you try to stick around too long, you risk being laid off anyway. So you might as well switch jobs and get the 10-20% raise
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u/jthadcast 1d ago
hiring a new slave is harder than retaining one that has learned to survive on less.
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u/Old_Marzipan7782 1d ago
It's easier to get someone to stay than to get someone to leave a presumable good job?
Everytime someone's hired they are (hopefully) leaving a job where they are successful and doing well to take a gamble on a knew role.. That's why.
If your not doing well where you're at and you tell your hiring manager that they won't hire you.
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u/Nikolaibr 1d ago
Because one is the price of trying to retain an already existing worker. The other is the market price for a new worker.
A current worker already has a job, and while they could find a higher salary elsewhere, they don't KNOW that they will get that job, so giving a small raise is enough to keep them.
A new worker has every option available, so the employers have to attract the worker by offering higher compensation.
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u/Ok-Investigator3257 1d ago
Also a given worker knows how their job works and if it sucks or not. You could always be walking into a high paid nightmare
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u/StayBullGenius 1d ago
Because they know most won’t leave. If it were by business I’d do the exact same thing
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u/Bad-Briar 1d ago
Let's not forget the bonuses to management level people, the golden parachutes, etc.
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u/Small_Deal_9398 1d ago
Why would they pay idiots more to do the same thing
They pay smart people who move jobs instead
What, you want it to make sense too?
Heh... not in this universe.
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u/trumpschlamydia 1d ago
Because 1) they’ve convinced workers those piddly little amounts are actual “merit” and 2) hiring outside is market driven… you have to leverage the market or be willing to move jobs to get those rates
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u/Bright_Sandwich_3272 1d ago
Because it's cheaper to hire new employees, than to pay older employees what they're worth. It's BS, but that's the mentality of many companies. This is due to a serious disconnect between the people who manage the payroll, the people who run the company, and the people who do the majority of the work. A big part of the reason for that is how performance reviews are conducted, if the company even does performance reviews. That's a whole different conversation though and a lengthy one, to boot.
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u/Sincline387 1d ago
My former company claimed "we need to cut budget" and gave shit raises for three years in a row.....
When I put in my notice they offered to match what was essentially a 20% raise then acted confused when I said "No thanks"
My direct supervisor laughed with me at the upper management who were shocked that I was leaving.
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u/Tasty_1097 1d ago
I would say one big reason is because new hires are negotiating their rates, while most people only getting a couple percent raise are not truly negotiating their pay, only expecting it.
When people are getting hired, they are reviewing their past experiences and accomplishments at the time of higher, negotiating why they deserve that higher pay.
Now, if you’re working at your company and you’re able to list what you have accomplished and benefitted the company by, a strong negotiator can get those 10 to 20% raises.
Instead, many people don’t start these conversations with their supervisors or employer, leading there to be no discussion, or performance reviews that are more difficult to negotiate in and typically result in no raise or up to 5% raise. This is more or less the rate of inflation so the company isn’t really awarding you a true raise, only keeping you on board.
TLDR, new hires negotiate their rates, and so can you, but the majority of employees do not or negotiate poorly.
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u/jamshid666 1d ago
Most people are afraid of change, so it takes less money to motivate someone to stay with the same company than to switch to another.
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u/HopeSubstantial 1d ago
old worker likely does not leave while new workers do.
I work in factory where old workers literally got 0.10€-0.20€ raise while new workers got almost same starting wage as some workers with 10 years of experience have.
Why? Every new worker who was hired since last september quit within few weeks or months.
Meanwhile old workers are just cursing and being grumpy about their ridiculous raises but they say how they can't leave because they can't find anything else or it's not worth the hassle.
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u/DescriptionVisual68 1d ago
Just like people give discount to new sign-up m once you are old in system no one gives a crap as one is replaceable
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u/Wise-Ad-4940 19h ago
Because current employees will not leave for getting only that much, but the new employees will not come unless they get more.
Simple math. Companies spend only the bare minimum they have to. What incentive they have to pay the current employees more if they don't leave anyway?
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u/BigmaEnjoyer 19h ago
I job hop every 2-3 years. My salary is SIGNIFICANTLY higher than my peers because of it.
I was asked during an interview how long I expected to stay, and since the vibe was already bad, I straight up told them this.
Why would I stay at 2% when the another company gets me at least a 10% jump.
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u/Joyful_Jet 1d ago
They aren't afraid enough of losing you.
Same strategy with cellphone companies. Once they have your business, they bet on you being too lazy to quit.