[illumen]

The employee retention is much higher than industry standard. Apparently the employees are happy.

The market seems to like their performance, since they are getting more business and making more profits.

If recruiting costs 10k, and training training 6 months + 20k. That's already 30k saved. Plus no opportunity cost loss because they had enough staff to do business could be easily more than the wage increase (according to the author). That's easily already over the 30k/year difference.

Assuming the company does not even grow, but just stays still... then this should be sustainable. Whilst they are growing, losing less staff than industry average will only increase their growth.

Note, that the company was slowed down because they had to hire more staff. Those slow downs would have been worse if they could not hire as quickly, or lost staff.

Is the employee retention solely because of increased wages? I'm not sure. But that alone could save the company a lot of money.