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The company I work at is more than happy spending £25ph on agency staff to fill labour shortages and keep the doors open but absolutely flat out refuses to raise hourly rates past £12ph to entice people to actually want to do that job in the first place because it’s ‘financially unsustainable’. I find it to be incredibly short sighted.
This happened recently with travel nurses after Covid, with my SIL. She made absolute bank being a travel nurse for understaffed hospitals. They were paying out far more than they would have just increasing the wages of the nurses at the hospital to be fully staffed.
I believe it eventually caught up, as she's no longer doing it, but it took a couple years for them to realize, hey paying a full timer $35/hr(random number) is better than paying a contract gig employee $500(another random number, but using it to express the discrepancy that exists between the 2, since a lot are asking about benefits and other employer pay factors, which in normal circumstances would be the case. Edited from $50) when we have to continously fill with just contract employees.
Sometimes it is the bureaucracy and not even the management. Easier to motivate for something temporarily. Even when temporarily has no clear end date.
oh I'm sure there's a lot more involved, was just a pretty drastic case of what the user I replied to was mentioning.