Recruitment/talent Acquisition, Career Counselling
19th October 2012 From India, Kumbakonam
Further to what S. Bhaskar mentioned, pl note that this ISN'T a 'Right/Wrong' issue. It's more to do with the typical demand/supply issue of various skillsets & experiences.
Increasing of pay packages is only ONE of the routes adopted--there are many, depending on the activities, size & domain/sector of the company involved. Some of them could be Re-designation or Promotion, Foreign/On-site assignments, Special Allowances, etc.
The Bottom-line for any of such steps would be to retain talent--to the extent the current company policies permit. Obviously, no company would go beyond what their finances/policies allow--for the simple reason that it would effect the relationship with other existing employees.
Taking a much lower-scale analogy, wouldn't you do a similar exercise with your home/domestic help, with whose services you are very happy/satisfied--IF she wants to leave?
Hope you get the point.
20th October 2012 From India, Hyderabad
Looking it from employees perspective, sometimes it is even found that the employees are interested in such bargains/negotiations. If the skill set /knowledge of such person is important, agreed - companies go for counter offers but it is observed that only few of them would stay away from it. Mostly, such employees have a set of demands already prepared to put forth the existing employees. How would you term that???
Don't forget this act is purely on the basis of mutual agreements. Both the parties involved are looking forward to a win-win situation. Hence, I too will not term it as Right or Wrong.
20th October 2012 From India, Ahmedabad