Earlier quoted context omitted.
Uncertain long-term career prospects that depend on a single employer. If you pay enough to make long-term prospects irrelevant, you may end up attracting the wrong kind of people. People who can't be trained do the job well enough, or people who will quit after earning enough. And you may end up losing your existing employees. They may quit if they don't get paid as much as the new hires, or they may FIRE if they do…
How come FAANG companies don't have this same problem of people quitting after earning enough? They get paid much more, even without taking on the risk of being tied to a single employer. The answer is that some people do quit and retire early, but even more are attracted to that career like moths to a flame, and work until they can't. I do think they should raise pay for their existing employees at the same time. In…
Software industry has always been plagued by attrition. Some companies pay well and mostly employ younger people. Older employees eventually filter out, either because they have already earned enough and prefer better work-life balance, or due to ageism. And then there are occasional downturns, where many people lose their jobs, can't find new ones, and end up leaving the industry permanently.
People generally prefer careers with multiple viable employers. Not just in the world, but also in the same metro area. That way you are less likely to get stuck in a job you don't like. But if you are an employer with unique requirements. Of skills that take years to learn and that people are not likely to acquire on their own. Then you may need to pay ridiculous money (more like AI than FAANG) to substantially widen your talent pipeline. And if you pay ridiculous money, you risk ridiculous consequences.