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Robert Sweeney 3rd CEO at Facet – Technical recruiting as a service Follow 2d 4 One day at Netflix my manager dropped into my office and said, "You’re getting a raise today!" I had only been at Netflix for a few months so I wasn’t expecting a raise any time soon. "Cool! But why?" I asked. His response is an example of why I loved working at Netflix. "We just hired a new Senior Software Engineer on our team and he negotiated a higher salary than what we’re paying you. So we are increasing your salary to match." If you have to pay more to hire new employees that means the market has gone up and your current employees need a raise to match. Don’t punish loyal employees for sticking with you by allowing their compensation to fall behind the market.