rajonย inย ย 
Software Engineerย 2 years ago

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.

jinyung2Software Engineerย 2 years ago
I think it might also be worth noting if you are in an enterprise role and the work you do is extremely narrowly scoped, and you just might not have developed the skills necessary at the next level. Compared to the external hire who might be coming from a company or role where they had far more responsibility and breadth of tasks, the internal promotion might not make as much sense.