Sometimes it is just about the money. Whilst this is rare, money is usually in the top 5 reasons why people move. So it’s better to pay an increased package for a known commodity, as you can bet that it will cost you the same or more to replace them. You then need to factor in the additional costs, agency fees, management time in running the hiring process, opportunity cost, and impact to the business. If the individual is in a management role the total cost to the business can amount to multiples of their annual salary.
Whilst some staff turnover is good, in the current market and uncertain economic times, stability and consistency are key. Most will favour the status quo over change and having the same faces in senior roles can be reassuring.