How does the internal raise structure often contribute to salary erosion compared to market reality?

Answer

Internal raises are often incremental (like 3%) and fail to match market value increases (like 8%)

Internal raise structures tend to favor company budgets, meaning standard incremental raises may not compensate for larger market value increases for the same skillset, leading to a real-terms pay cut relative to worth outside the organization.

How does the internal raise structure often contribute to salary erosion compared to market reality?
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