The thing about not paying your hard working and highly efficient employees the kind of money that they're deserved is that it has a tendency to backfire. In this case, the employee on hand wasn't too pleased at all about not being given the kind of raise that they felt they deserved. So, it sounds like that resulted in them starting to take a whole lot more PTO. It wouldn't be beyond reason to suggest that there's a strong possibility that they're out there hunting for a new gig. Hopefully, this manager got the kind of wakeup call that they clearly needed.
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