To be more precise, the problem is that employees' raises are not keeping up with the job market, so the only way to get what you're worth is to change jobs frequently.
If companies would make more of an effort to keep their employees happy (financially, work satisfaction, etc.), they'd spend much less time recruiting and training new employees, and productivity and profitability would probably increase.
Hiring a new employee at the same level of competence is going to cost at least as much as retaining an existing employee, so I wonder why companies get into this cycle of constant turnover. The only way they'd save money is by constantly hiring inexperienced employees to replace the slightly more experienced ones who left, but what they'd gain in cost would be quickly eroded by lower productivity, loss of collective knowledge of the product, etc.
Both jumping ship for raises and other things are also true according to multiple sources. Job satisfaction is another leading cause. The tech industry has to fix the issue of turnover, its costing too much money and careers are being diluted.
If companies would make more of an effort to keep their employees happy (financially, work satisfaction, etc.), they'd spend much less time recruiting and training new employees, and productivity and profitability would probably increase.
Hiring a new employee at the same level of competence is going to cost at least as much as retaining an existing employee, so I wonder why companies get into this cycle of constant turnover. The only way they'd save money is by constantly hiring inexperienced employees to replace the slightly more experienced ones who left, but what they'd gain in cost would be quickly eroded by lower productivity, loss of collective knowledge of the product, etc.