[ItsMonkk]

Hiring Juniors is a positive externality that the company does not see a penny of. They only see a penny of that externality if they don't give a raise, and that Junior chooses to stick around anyway. You get to exploit that he made friends or is stuck in your part of the city due to a lease or otherwise makes a poor financial decision.

It's interesting that the worse the interview process, the less the Junior will want to go through it, the more the company benefits. You make your process painful so your competitors make their process painful so both of you hold onto your Juniors for more time.

If you can fix the externality problem this goes away, but that's not easy.

[Manuel_D]

Isn't this what vesting cliffs are for? To incentivize employee to stay for at least a year or two?