Because not enough people quit to make the business feel the loss in the end.
If you can underpay 10 people at the cost of losing and having to rehire 1 at a higher cost, then that might unfortunately be the more lucrative choice for the business.
Depends on the situation, but one thing I can think of is certain benefits don’t kick in until you’ve worked at the company a certain amount of time (say, a full year).
Probably saves money in the long run unfortunately.
Quite dumb, but it is what it is
How would it save money in the long run?
Because not enough people quit to make the business feel the loss in the end.
If you can underpay 10 people at the cost of losing and having to rehire 1 at a higher cost, then that might unfortunately be the more lucrative choice for the business.
Hence we unionize
Depends on the situation, but one thing I can think of is certain benefits don’t kick in until you’ve worked at the company a certain amount of time (say, a full year).
How so? Genuinely curious how that works. Doesn’t sound like it should, if you end up paying more, for less.
The employee may not quit.
Consider the system as a whole. If not enough underpaid people quit, you as a business might just make it out ahead.