Anonymous wrote:I used to work for a large engineering firm where this was quite common. They were very stingy about raises, so realistically, the only way to get a good salary bump was to leave and work for someone else for awhile, then they'd offer big salaries to get these people back. I never understand why they just didn't pay market rate to begin with.
Because this method gives the employer the freedom to only pay higher salaries to the better employees, the ones the employer wants to return.
If they paid market rate to everybody, they'd have to pay both the better and the worse employees that higher rate.