This is unfortunately true in our industry, from my experience. The only way to make substantial raise for top performers is to have a new job offer with +20-30

This is unfortunately true in our industry, from my experience. The only way to make substantial raise for top performers is to have a new job offer with +20-30%. Otherwise the HR department will give you X reasons why you asking for such big raise is inappropriate. This is part of free market economy, companies are trying to minimize their costs and maximize profits so it makes sense not to waste money giving big raises. This is why you need to play the free market game and force their hand. Once you get a much better competing offer, your current employer will probably offer to match it. But at that time why stay anyways if you had to force them to consider a substantial raise by going for interviews and getting a better offer? Also, there is an old advice which says to never accept a counter offer. I do think there is a ceiling for this approach. You can probably do it 4-5 times and get to quite high salary (150-200k). After that this tactic does not work as well anymore so staying at one place for a long time and earning an internal promotion becomes better option.