zedazeni 12 points 11m ago
One would think, right, but every major company uses this revolving-door policy regarding their employees, from Wal-Mart to McDonald’s and Sbux. They all know that the longer an employee stays at the company without being promoted up the corporate ladder, the more benefits, bigger raises, and greater negotiating power is expected on behalf of the employee. Of course, you’re absolutely correct that in the long run these companies are losing their economies of time, but the stock market doesn’t care about the long run, it cares about quarterly earnings, and that, my fellow redditor, is short-term, and in the short-term, cheap labor = lower operating costs -> big profits.