I agree with the title and point of article but it’s not really possible. No company can consistently identify those who are good, pay them well, fend against competitors despite their rising expenses (remember paying people more?) and do all of these things while people leave anyway for reasons outside of their control (moving, bored etc), which results in you having to hire more anyway, stresses the before mentioned process (inevitably you will notice people who are paid less can perform as good or better than more paid employees).

If I were in a position to implement things I’d simply get rid of raises all together and simple give people only stock and/or profit share. If they’re doing well the raise will come to them automatically. Of course this has perverse incentives in itself too.