My friend could double his salary, moving almost anywhere else, but he gets a lot of perks at his work, and is treated extremely well by his managers.
They just gave him a rave review, and that did more to boost his willingness to stay, than a 10% raise. He will still negotiate a better salary, but is more likely to be satisfied with less than he might have, if they tried to treat him badly.
Treating employees with Respect can actually improve the bottom line. They may well be willing to remain in difficult situations, if they feel they are personally valued.
I know this from personal experience. When they rolled up my team, after almost 27 years, the employee with the least tenure had a decade. These were top-shelf C++ image processing engineers, that could have gotten much higher salaries, elsewhere.
The problem is our current form of corporate culture. Employees don't feel like they matter, there efforts are a cog in a wheel. If you get a raise in this type culture, it only matters to the bottom line and there is no incentive produce because the employee is already unhappy in the first place.
Change your business culture and these problems will disappear, IMHO.
We also have a 401K match with an immediate vest.
I’m a founder for 10 people and this is the first thing we think about. Except for low performers; except that youngsters need a variety of experience to be proficient at life; except that the team is not performing well(1). 25% or 30% increases for half the workforce are frequent.
(1) The biggest remark from management coaches is that giving raises lowers employee performance, which I can fully witness in my company. It’s not even good for morale. I’m just happy that people exit the company fitter and with a girlfriend, even a kid and sometimes a permanent residency, but business-wise I’ve been as good as a bad leader.
I’m reaching the sad conclusion that employees bring it upon themselves.