The problem is that some managers appear to be confusing "studies show that in most cases extra money does not increase employee performance" with "employees do

The problem is that some managers appear to be confusing "studies show that in most cases extra money does not increase employee performance" with "employees do not want more money". It's probably true that post-raise motivation boost is short lived, and people's expectations level out, and it might be even true that money could even act as a demotivator. But it doesn't mean people don't want more money and will quit if an opportunity shows up.