> You can do it, but since you're relying on others to build the pipeline, you're going to have to pay a lot more salary to the seniors than you would if you promoted them.
Not really, because people aren't loyal to companies, it's not the 1980s.
If Company A trains a junior to a senior and fails to pay senior rates, what stops that new senior moving to Company B?
Company A and Company B thus have to pay roughly the same, who did the Junior->Senior transition doesn't matter
Inertia helps. It's common knowledge that you'll get paid more if you switch jobs. Which means Company A gets a discount until the person leaves (but maybe they'll take a matching offer)
That's the normal stickiness of a job, but if you are a junior and you've levelled up to senior you'll likely be looking at a wide number of roles far more than a senior staying still.
Some things are easy wins for retention -- my company gives extra holiday as tenure extends for example, and people of a certain age still have a defined benefits retirement plan which has significant value. The extra holiday costs companies nothing, but an extra day each year really helps, start with say 28 days, but after 5 years you're on 33 days. It's harder to put a monetary value an extra day off, so harder to make the jump-ship calculation.
Not really, because people aren't loyal to companies, it's not the 1980s.
If Company A trains a junior to a senior and fails to pay senior rates, what stops that new senior moving to Company B?
Company A and Company B thus have to pay roughly the same, who did the Junior->Senior transition doesn't matter