1. You have an employee who has been with the company for years and thus has lots of hard won experience and knowledge about the particulars of your company
2. They have already been groomed for and shown potential to perform well in a lead role
3. You promote them to lead and pay them what they are worth, knowing that paying market wage is better than taking a gamble on a new hire and paying them market wage anyways.
its worrying that this kind of weird political shit always ends up highly voted in comment threads, because it colors your expectations. work for good, trustworthy, competent people, forget about this meta scheming bullshit and focus on doing your job well.
Given high turnover, that is probably most people though.
Your points make total sense though. Companies lose out by not having employees who have built up institutional knowledge, but in today’s market most of the people who companies want the most are likely to leave for greener pastures in 2 years.
A common complaint is that it is too difficult to have career growth without changing companies and that promotions and raises are difficult to come by because companies don't care about developing their people. What you are saying now is that it is also bad if a company promotes people from within, since it encourages people to leave. Both options (never promote / encourage growth) can't be wrong.
IMO, this is not the way it works at any reasonable place. I've had zero engineers under me leave over the last four years and I attribute that in large part to me being able to meet their career growth goals within my team.
Extra responsibility/accountability/risk without corresponding compensation reads like a promotion to some folks, but to other folks it looks more like a pay cut.
Rejecting a promotion can be seen as bad in toxic places or for junior engineers, but I actually like hearing this from my reports because it means that I don't need to make changes to accommodate their growth.
This assumes all companies are unable to pay market rate for leads. Otherwise it is mathematically impossible.
So, easy fix is raise pay for internal people when they prove themselves in new role and match market salary.
PIP = Performance Improvement Plan
Failing miserably is less likely given you have some "success in role" criteria they are clearly demonstrating beforehand.
Not sure I follow the burn concept here? If they are shitty why promo, unless you want the initiative to fail? If they are good see above
Oh wow. This was the EXACT thing to happen to me.
Although in my defense, I was actually thinking of leaving the company before becoming lead. In fact I probably stayed longer than I would have otherwise due to the opportunity.
Small team tech-only leads who are not managing people will not typically be promoted to director levels at most big companies, but if you're actually managing people and your skip-manager loves you, it's totally possible even if your team is small.
If they fail miserably at the lead role, they will become disillusioned, maybe face a PIP if they fail bad enough, and best case will end up as a more grumpy IC that feels like the company screwed them over.
If they succeed, then you will almost certainly be unable or unwilling to pay them what some other similar company would pay them now that they have proven their ability as a lead. They will stick around for a while, but once something starts to go wrong anywhere on their team or in the company (and it will) they'll realize that it's probably going to be several years before there's any potential to climb the ladder any further, and they start to sniff around for what they should be making, and you'll lose them.
It's a valid choice to "burn" personnel this way because you need a project done and can reasonably hope that the person you're burning can get it done.
But it's generally less costly/risky to either a) fight the hard fight of getting an existing employee's salary in line with their new role immediately when they start it, or b) hire an external lead and fire quickly if they suck. The benefit of an external lead is that if they're really good, they might have director potential, which is even more valuable to promote someone into, and much more politically viable for someone who hasn't just been promoted to a lead/manager.
On that note, a warning to C-levels of all shapes and kinds: when you promote someone internally from lead to director,...