EMPLOYEE GOT HIS FINAL PAY RAISE, NO MORE AFTER THIS – SO HE JOINS OTHER COMPANY

Coworker resigned after reaching 10 years and getting his final raise.

I have (had) a co-worker who crossed his 10 year mark with the company last month. As per company policy, the final bump in pay is at the 10 year mark. He is now making the most money he will ever make with this company. He could stay for another 10 years and will not get another raise after this one.

This last week, he put in his resignation. When HR asked him why he’s leaving, he told them that he has no incentive to stay with the company. He said that because he can’t get anymore raises from this employer, the only way for him to make more money is to go to a different company.

He is using this most recent raise/benefits bump as a bargaining chip when negotiating wages at the next company. He took an offer with a company who is giving him 15% raise from his now maxed out income and apparently they are matching all of his other benefits.

Moral of the story: companies who are putting caps on income/benefits after a certain point, are encouraging their most loyal employees to leave the company.

Edit: He was our team lead and main engineer of the company and yes, management has already asked the mechanical engineer and myself if we can get by without him (we both said no); but this lead the two of us to have the conversation that we will both leave if that responsibility gets added to our already over stressed workload. If this happens then there zero engineers employed; and I can’t believe management doesn’t see the red zone they walked themselves into.

Netizens’ comments

1. “Loyalty will make you poor…” best advice I’ve gotten left my company of 12 years to start at a new place with 20% raise doing the same thing I was..
2. “Wait, aren’t we all family? I hope you don’t work just for money” -Employers response when he quit.
3. Yes, that is EXACTLY what they are encouraging, and they will continue doing it until the cows come home. When that guy leaves, they will hire some poor schlub at a much lower rate, thus ‘saving’ on payroll.
4. My husband has been with the same company for almost 25 years. If they tried to cap his salary at any point he’d be out of there so fast, taking all that experience and knowledge with him.