I feel it's become a self fulfilling prophecy.
90% of the people I've worked with who stayed in one place > 7 years were paid under market but also not great at their jobs.
90% of the people I've worked with who stayed in one place > 7 years were paid under market but also not great at their jobs.
If there is no proper incentive system in place to encourage good performance, those who value money or career development just leave after a while and those who just want an easy life stay and underperform.
One major negative of hiring externally is it harms employee moral. There have been a number of studies that hiring internally is better for long-term organizational health.