An employee earning $125K requests a raise to $135K.
She has consistently shown dedication and hard work. 17 years of experience and exceptional performance also spoke in her favor.
Employee: I deserve a raise at $135K.
Boss: That's not possible. We have budget constraints.
After 3 months, she got the same answer. The next month, she resigned.
Her departure affected team morale and resulted in a $250k loss to the company.
The search for her replacement took months. The hiring and training process cost around $30k.
It would have only cost the manager $10k to keep her compared to the $280k it cost to replace her.
Not to mention they likely had to pay her replacement more than $125k since people generally get a compensation increase to switch jobs.
#HumanResources #Careers #Management
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