At my current company (and I assume in many other companies), this is the main reason for not compensating existing employees fairly. If my manager (lead of 15

At my current company (and I assume in many other companies), this is the main reason for not compensating existing employees fairly. If my manager (lead of 15 devs) went to his shareholders that we want to adjust people's salaries so that they are more likely to stay longer (let's say this cost 300k a year), they would not approve it even if it meant we could reduce the number of devs leaving from 4 to 2. If he said we need 300k for hiring two devs, it would be approved without a question. Back-of-the-envelope math based on European salaries.