When doing comparisons (i.e. "Is this new guy really cheaper?") that sort of thing is figured into the price. Companies that care about morale figure more into the value of keeping existing employees, but places that use brain washing techniques [1] are going to count the "morale costs" of someones real value very low because they're controlling morale anyway [2]. I've directly seen this applied in several companies. Sometimes it was in response to loss in revenue (i.e. out of their control), a couple of times it was just because.
[1] When a company puts slogans all over their walls, keeps on bleating the same message about "we're a family", uses phrases like "always put in more than you take out!", it's nearly always because they're trying to create the impression in their employees that a relationship exists that actually doesn't.
[2] Most likely by driving it as low as they dare so that anyone who would leave already has.
Comments
When doing comparisons (i.e. "Is this new guy really cheaper?") that sort of thing is figured into the price. Companies that care about morale figure more into the value of keeping existing employees, but places that use brain washing techniques [1] are going to count the "morale costs" of someones real value very low because they're controlling morale anyway [2]. I've directly seen this applied in several companies. Sometimes it was in response to loss in revenue (i.e. out of their control), a couple of times it was just because.
[1] When a company puts slogans all over their walls, keeps on bleating the same message about "we're a family", uses phrases like "always put in more than you take out!", it's nearly always because they're trying to create the impression in their employees that a relationship exists that actually doesn't.
[2] Most likely by driving it as low as they dare so that anyone who would leave already has.