as a manager i have so many thoughts about this https://twitter.com/EmilyKager/status/1297727294862237696

firstly: "retention" is something done continuously by creating and maintaining an engaging and rewarding work environment. retention in its discrete form of "diving saves" and last-minute counter-offers is a failure mode.

secondly: my default assumption is that everyone on my team is getting interest from recruiters every day, and actively exploring their options all the time.

my job is to accept that as axiomatic and still ensure that my team thrives.

thirdly: it's healthy as an individual to maintain an awareness of what else one might be doing/learning/earning. respond to recruiters every now and then! interview! explore!

i do this; i'd encourage anyone on my team to do the same.

fourthly, in answer to the original question: the industry exploits information asymmetry between employers and employees.

in aggregate the economic inefficiency is small: for every employee who discovers that they can get 20% more elsewhere, there are twenty who never do.

finally, there is more to a job than financial compensation. @drrill pointed me today to @palomacmedina's BICEPS framework of core occupational needs, which is very worthwhile https://www.palomamedina.com/biceps