Why are hiring budgets higher than retention budgets??

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JPMC1 has an interesting point on this re: perception. I would tend to agree, still working on the why.

What is ironic about this is that most SVP+ roles - outside of banking - at companies tend to have longer tenured, older employees.

Do leaders not become stale and expensive?
Is it just ICs?

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Getting too Seriously now!

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I think it is a perception thing by employers. Employees that are older or who have been at the company for a while have a reputation for being stale and expensive. Also, it is a way to scare older employees into thinking they are replaceable.

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And what I have observed is that the current employee hike will still be less than a new employee.

Inertia

Job security for HR

People don’t like being told no, so they are less likely to revamp their resume, apply for another job, and prepare for the multiple rounds of interviews just to be told no. Employers bet on this knowing that they can make a counter offer once you say you are leaving, if they want to keep you.

Because they don’t want to take steps to avoid pushing employees to the point where they want to leave. They are banking on the fact that at least some employees will tolerate the working environment as-is, and the hiring market is hot enough that they can replace anyone who isn’t tolerating it. Plus, by the time someone is so fed up they want to leave, the relationship is cooked anyway. Counter offers and retention plays rarely work

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