As much as this story is meant to be about keeping staff happy and managing expectation. Actually what I think it really does a good job is illustrate that finance and hr teams are pretty bad at managing the complex cause and affect that balance sheet decisions make. How many times have you seen someone leave because they were turned down for a pay increase?. The company then has to pay 12%-18% of an increased annual salary in recruitment costs for a replacement - added to the costs spent for managers time during hiring.