[TheCowboy]

I agree with your point that it is wise for job seekers to consider these costs and that companies will take advantage of this. I also think it's a long-term mistake when companies do this.

It's a problem because you end up with an employee who is now being paid below market rate. This is most effective against those who are not employed, but once they are employed they will be hearing from recruiters or start looking for the next job while still on the payroll. Because this company is unlikely to provide aggressive enough raises, their employees will be receptive to new offers. A year or two out, this employee gives 2 weeks notice. Was the win of saving the company a couple $10k worth it? Most likely not.

If employers have trouble both finding and retaining talent, then this is a mistake to leverage this against unemployed candidates. If you don't have this problem you soon will once recruiters discover a company full of underpaid but qualified candidates. People leaving is also a signal to current employees that better deals exist somewhere else.