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Yes, that's a factor...for some reason employers think that paying more for new talent is better than paying the same amount for people that already have institutional knowledge.
But anywhere you go is going to be giving the same raises year over year.
Which really makes me wonder why salaries haven't spiraled out of control or how this ever became an issue. You'd think the "new employee" rate would grow faster than the "current employee" rate. If the "current employee" rate climbs by 2% each year, and the "new employee" rate increases by 4%, it wouldn't take long for a very wide gap to appear.
But that doesn't happen. Somehow we manage to be perpetually able to find a new job with a higher salary every few years.
I think the "quitting for a raise" is overblown. Whats happening is quitting for a promotion, and that leads to another problem of title inflation and disparity between employers.
I could search for my title at my current employer and find jobs I'm nowhere near qualified for, paying about the same. And I could search for my original title and find jobs paying 1/2 as much as what I was hired at a few years ago. Shit makes no sense.