'Loyalty will make you poor': Coworker quits after getting final raise, gets competitive offer elsewhere

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    Motor vehicle - "Coworker resigned after reaching 10 years and getting his final raise."
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    Font - Coworker resigned after reaching 10 years and getting his final raise. Pretty much what the title says. 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 and PTO 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.
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    Font - This last week, he put in his resignation. When HR asked him why he's leaving, he 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.
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    Font - 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.
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    Font - Moral of the story: companies who are removing pensions and putting caps on income/benefits after a certain point, are encouraging their most loyal employees to leave the company.
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    Font - Edit: for clarification because people are asking. The company is a machine building OEM. This guy was our lead hydraulics systems engineer. He, along with the mechanical engineer, and myself (the electrical engineer) would work as a team to design, build and troubleshoot massive systems for our customers. They couldn't promote him or else they won't have their hydraulics engineer anymore,
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    Font - and they have a hard time replacing him because engineers are hard to come by as a whole, (there's more engineering positions open in the USA than there are qualified people to fill them) let alone hydraulics engineers specifically. About the only way I see my employer replacing this guy in a timely manner is to poach someone from a different company which will force them to pay more than this guy made.
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    Font - And yes, management has already asked the mechanical engineer and myself if we can get by without a hydraulics engineer (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 this will be an OEM with zero engineers employed; and I can't believe management doesn't see the red zone they walked themselves into.
  • 09
    Font - TeekerCoin 18 hr. ago "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.. Reply Share 5.5k
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    Font - Sloppy Meathole. 18 hr. ago "Wait, aren't we all family? I hope you don't work just for money" -Employers response when he quit. Good for him. Perfectly played. 5.4k Reply Share
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    Font - DavefromKS 18 hr. ago Job hop all you can people. 4 933 Reply Share ●
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    Font - tandyman8360 18 hr. ago lazy and proud I had my 15th anniversary a couple years ago. Got my full 4 weeks of vacation along with a bonus and a company branded jacket. A few months earlier, I was given my first sub- standard review and no raise at all. A month after, I was blocked from applying for another position by HR. A month after that, I was putting in my resignation.
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    Font - I actually ordered my jacket the weekend before I resigned. Not a high quality product as one might expect. The new job was high quality, however and came with a 40% raise. 732 Reply Share
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    Font - Hungry_Reading6475. 18 hr. ago While my company does cap it's (very generous) vacation leave at the 10 year mark (24 days of leave on top of all Federal holidays and the week between Xmas and New Years), wages and raises are not capped, and sick leave can be banked with no limit. I've been here over 20 years and have over six months of sick leave banked (helpful if I ever have a very big/bad medical issue). Yeah we don't typically have an issue with high turnover. Weird. 348 Reply Share
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    Font - guntonom OP 18 hr. ago And I worked for a company that only gave you 40hrs of PTO after a full year of working (you got no PTO the entire first year of working). Sick days count at PTO. And they were a 24hr factory that ran even on holidays. But don't worry, they were a "Christian values based" company. Probably only to get tax breaks.
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    Font - That factory had an over 40% staff turnover rate year over year, the only people who stayed longer than 2-3 years were management, and they couldn't figure out why people "didn't want to work"........... 193 Reply Share
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    Font - CRIS LoStraniero0x. 18 hr. ago 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. What about institutional knowledge loss, training expense, strain on remaining employees, and morale, you say? What about it? We just saved X amount on payroll and none of that other twaddle matters one bit. 233 Reply Share
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    Product - TheHungryBlanket · 18 hr. ago What did the company representatives say when he told him why he was leaving? 211 Reply Share

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