A company that decides to pay salaries below market rates thinks it's "smart savings"...
But in reality, it's transforming from a "company" into a free training school for competitors.
Let's look at this from three perspectives:
From the employee's perspective:
- They're paid less than they're entitled to → They endure a while, learn, and gain experience.
- And then... they move on faster than you can imagine.
- The result: The company spent time and money on training and development... for whose benefit? The competitors.
From the competitors' perspective:
- The smart competitor is waiting
- They know a "wave of trained talent" is coming for them for free.
- They gain a ready, motivated, and eager employee for the recognition that your company hasn't provided.
From the company's perspective:
- Instead of building a stable workforce, they build a waiting list for competitors.
- Instead of maintaining a market reputation, you become a transit station.
- Instead of boasting about developing your workforce, you become a mere human farm exporting to competitors.
Companies that pay less than the market must understand:
- Salaries are not a cost...Salaries are an investment in loyalty and stability.
- Still convinced that "those who leave are easily replaced"?
- You'll remain trapped in a cycle of hiring, training, and attrition.
Bottom line:
- Pay less = Free training for your competitors.
- Pay correctly = A stable and strong entity

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