It is a problem, but not the problem described in the article, and not the leading problem.
From the article:
>> "This result is consistent with a large body of evidence that pay has only a moderate impact on employee turnover. ... In general, corporate culture is a much more reliable predictor of industry-adjusted attrition than how employees assess their compensation."
In short, as with many other stories, what most commonly leads people to quit is bad management, and often specific bad managers. Obviously when pay is tool low and uncompetitive, that'll also create problems. That's also why the major law firms have associate pay in lockstep with big growth that more than doubles their pay in 5-7 years, by which time they're either on Partner track or out. So, yes it would be smart for firms needing engineers to follow suit.
From the article: >> "This result is consistent with a large body of evidence that pay has only a moderate impact on employee turnover. ... In general, corporate culture is a much more reliable predictor of industry-adjusted attrition than how employees assess their compensation."
In short, as with many other stories, what most commonly leads people to quit is bad management, and often specific bad managers. Obviously when pay is tool low and uncompetitive, that'll also create problems. That's also why the major law firms have associate pay in lockstep with big growth that more than doubles their pay in 5-7 years, by which time they're either on Partner track or out. So, yes it would be smart for firms needing engineers to follow suit.