I have to ask one important question, even though talent is more valuable than money, companies still don't have infinite amounts of money to simply rise pay for everyone.
Some companies operate in not that profitable markets or have bunch of other issues.
Cost of attrition is still dispersed over the time and while you loose the knowledge at hand it still might be cheaper to build it back over a year than drop cash on people right here right now.
There is such thing as time-value of money and company might prioritize other investments that in long term will outweigh knowledge lost as knowledge can be rebuilt and gains from other investment might not.
Of course one can say - there will be some knowledge that will be gone. From practical point of view, if that knowledge that is lost would be so valuable it would most likely resurface or would be rediscovered quickly by new hires. Maybe not ideally but still in a way that company can continue.
Some companies operate in not that profitable markets or have bunch of other issues.
Cost of attrition is still dispersed over the time and while you loose the knowledge at hand it still might be cheaper to build it back over a year than drop cash on people right here right now.
There is such thing as time-value of money and company might prioritize other investments that in long term will outweigh knowledge lost as knowledge can be rebuilt and gains from other investment might not.
Of course one can say - there will be some knowledge that will be gone. From practical point of view, if that knowledge that is lost would be so valuable it would most likely resurface or would be rediscovered quickly by new hires. Maybe not ideally but still in a way that company can continue.