It's pretty much like sweeping the problem under the carpet because a cheaper workforce can only make some problems seem less noticeable for a while. Perhaps some will disagree, but I'm afraid that in the long run it could only create new problems. I wish I was wrong.
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They are making it REALLY hard to get promotions this year in the sales org. A very small amount of reps will feel like they are progressing in their career within the next 12 months. Promos this year require you to be at 80% from either last year or this year. In and org where quotas are attainable, that is fair. But the reality is that most never even get close to 80%.
Once people decide to leave because it's so hard to progress (lay-offs would be expensive due to severance), younger, less experienced, and cheaper sales reps will move in.