I still don't understand why that policy's fair.
I recently left one company and joined another, and am trying to convince all my former coworkers to apply here as well because I genuinely think it's a way better place to work.
If you can't compete on the labor market fairly, you deserve to lose employees. Policies like the one you describe are just a market inefficiency that doesn't have a real justification for existing (outside of your own interests).