Comment by watwut

I too think this depends on how dysfunctional the company is and in what way it is dysfunctional.

Overall, with reasonable management, people have better idea about your skills and abilities after working with you then shortly after interview. Interview is artificial short situation. If that applies, staying makes a lot of sense because you get more challenging tasks, more autonomy, your word is trusted, you have more say in negotiations. Leaving to another company means that you have to start again less trusted, won't get those challenging tasks and generally need to prove yourself before gaining the same back. Plus yoi risk that environment in new company will be more toxic. Changing team is in the middle - you have reputation and sometimes simply need change so that you don't stagnate.

In such organization, pure talkers loose credit over time, get moved from team to team and no one wants to keep them and end up on project they themselves don't want and nobody wants and leave.

Obviously, if the company starts to be dysfunctional over some treshold or stagnates, the high quality people will leave as the above benefits get lost. If it is toxic or unchallenging right now, you are good chance another company will be better.