I worked for a major institution's engineering group where we formally asked "We're getting recruited all the time for more, will you raise comp to market to prevent people leaving?" Answer, "No." Annual attrition was 25%. At a recruiting/replacement cost of ~$40K, raises would have made more sense, but then managers would have failed to wield their power to "constrain their budget."
I worked for a major institution's engineering group where we formally asked "We're getting recruited all the time for more, will you raise comp to market to prevent people leaving?" Answer, "No." Annual attrition was 25%. At a recruiting/replacement cost of ~$40K, raises would have made more sense, but then managers would have failed to wield their power to "constrain their budget."
Logic need not apply.