This behavior is telling you (maybe not intentionally or consciously), that you need to look outside the company for a large pay bump. Unfortunately, many companies do this.

And honestly, there is a middle ground that a company needs to walk, otherwise on the far side, they can be a ship full of very well paid employees on a trip where a few thin years could sink it.

But to be clear, it's absolutely not in your personal interest to receive low pay for the benefit of the firm - especially in an entry level position.