The general case may still make not giving raises (or only small ones) more profitable - you don't know how many other employees didn't leave despite not gettin

The general case may still make not giving raises (or only small ones) more profitable - you don't know how many other employees didn't leave despite not getting big raises, it may more than make the difference for the odd person leaving because of it. Or how long they got that guy's labour at a discount before he wise up & got a better paid position elsewhere. It may have been years of savings by then.