This is something I have thought about before. If the raise is "good" (well above inflation, at least as good as market rate), then it doesn't matter. Other mo

This is something I have thought about before. If the raise is "good" (well above inflation, at least as good as market rate), then it doesn't matter. Other motivations (pursuit of mastery, desire to do a good job etc.) have a more powerful effect than competition. The problem comes when the raise is "bad" (at or below inflation, below market rate). At that point, the feeling of being undervalued kicks in and can have a more powerful effect than other motivators. It is the difference between feeling like you are being treated like the best employee vs. feeling like you are being treated like the worst employee.