I think the problem is companies hire for say a web developer II position and assume after hiring they can stick to COLA (inflation) raises. Except, after three years truthfully they are now a web developer III which is a promotion and 10 to 15% increase. Since they have only been doing COLA raises (2 to 3%) it catches them and there budget by surprise. Just give 5% every year and don't worry about the cognitive dissonance you'd (the mangers) face. (I think managers have cd because they have rationalize why all of a sudden someone should be compensated 10% more when nothing much changed between yesterday and today. They need to see, think, and spread out the increase over a large period of time. Knowledge of existin outg systems doesn't happen in a day. Pay them more as they learn and know more.)
