Why don't companies pay employees more for internal promotions?
It's so interesting to me that new external hires get paid so much upon coming into a senior level, whereas existing employees receive a much smaller pay bump for a promotion to the same level. Isn't it worth it to invest more in your employees who have more context and are more developed to the tune of your company by now. Wondering if it's a misstep by companies that ends up in high churn. In the extreme cases, I've even seen employees quit and go to another company just to come back with a new (much higher) offer to their original employer.