Why do many bosses prefer to spend more money to recruit new people than to give old employees a raise?

This is because the boss considers the interests and long-term development of the whole enterprise. Although giving old employees a raise can make them feel valued and concerned, it may also bring some negative effects, such as:

Unbalanced salary structure: if the salary of old employees is generally higher than that of new employees, it may lead to imbalance of internal salary structure, resulting in certain contradictions and dissatisfaction.

The quality of old employees is not high: if the salary of old employees is too high, and their actual performance and ability are not enough to support this salary level, then this will waste the resources of enterprises and lead to the decline of enterprise benefits.

Unfair performance: If only the old employees are given a general salary increase without considering their performance and contribution, there may be unfair performance and some high-performance employees will be dissatisfied.

Therefore, in order to ensure the long-term development and overall interests of the enterprise, the boss may be more willing to recruit new employees to maintain the balance of the salary structure and improve the overall quality and performance fairness of the enterprise. Of course, in this process, the boss should also pay attention to the rights and needs of the old employees as much as possible, and give them opportunities such as promotion and training in time, so that they can get better development within the enterprise.

Please adopt it. Thank you.