Why do companies replace employees instead of giving raises?


Long story, short:

I have been working 2 years for a fortune 100 company. In a team of 5, I'm a guy doing the React front-end for an internal dashboard. After asking for raises and not receiving them. I began interviewing and recently got an offer for +40% TC.

Upon giving my 2 weeks notice, my employer asked me to do 2 additional weeks, to ease the transition, and to backfill my role. I accepted as I do have a good relationship with my manager, and coworkers. And genuinely wanted the best for them.

Yet, on my second-last week, I found out that I'm getting backfilled by 2 guys on my same level and pay band. These two remaining weeks will be me doing knowledge transfer and onboarding these 2 guys. I can't help but wonder about how they can afford to hire 2 new guys, while can't afford to give raises to existing employees.

Is this normal company behavior? Is there something that I'm not seeing that makes this a good financial decision for the companies?


Because they know a lot of people don't want to invoke such a big change that is finding a new job: needing to brush up on interviewing, potentially needing to move, having to take the actual time to do the interviews, etc...

We might be in high demand, but finding a new job still takes a lot of time and effort + has a slew of unknowns about how your future next company might be/could be for the worse.

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