It's an attempt to retain employees, reduce lateral transfers to other firms and slow the exodus to the new technology companies. The decision to raise salaries instead of finding other ways to attract and retain employees is inflationary in itself. We also see the pressure on the new Internet companies to become profitable. Companies unable to attract new funding are laying off employees, and experts predict in the next year many of them will cease operation. We will continue to see mergers of firms to expand services, reduce costs and gain greater market share.
Today there is no such thing as job security.
The days of staying with one organization for your entire career are gone. In fact, staying with one firm for many years can now be viewed as a negative career strategy. Experiences with other companies often bring a fresh perspective and new skills and can be used as a negotiating tool for increased compensation packages and job responsibilities with employers. Today we see changes in how work is accomplished. The advantage to companies is they do not have to pay for benefits, and it is easier to eliminate the worker when staffing needs decrease.