This is the real answer. Companies have been stubbornly refusing to grant raises in line with market rates.
It makes sense on the balance sheet. A large fraction of employees (33% if we take the article at face value) are unwilling to exercises their market options, and will stay at a company that underpays them.
The rest leave for greener pastures, and are replaced with new hires that are paid as much as a promoted position would be paid. But this way, companies can hold on to those 33% that never see a raise that exceeds inflation.
Large companies don't factor in things like loss of domain expertise, retraining, or loss of productivity due to hiring in their spreadsheets. So they will continue to do this and the only way to negotiate a true raise will be to leave; or threaten to leave.
Domain knowledge? Heck, at most of the places I've worked they don't even do a cost benefit analysis on whether or not the dev costs will produce a positive ROI.
It makes sense on the balance sheet. A large fraction of employees (33% if we take the article at face value) are unwilling to exercises their market options, and will stay at a company that underpays them.
The rest leave for greener pastures, and are replaced with new hires that are paid as much as a promoted position would be paid. But this way, companies can hold on to those 33% that never see a raise that exceeds inflation.
Large companies don't factor in things like loss of domain expertise, retraining, or loss of productivity due to hiring in their spreadsheets. So they will continue to do this and the only way to negotiate a true raise will be to leave; or threaten to leave.
They hope you'll just be passive.