Chances are the only good way to make your engineers stick around is to keep adjusting compensation to market rates. If an engineer can get a higher salary at p

Chances are the only good way to make your engineers stick around is to keep adjusting compensation to market rates. If an engineer can get a higher salary at pretty much any other company, there's no question if they "deserve" a raise. I don't think compensation should be used as a reward for effort. If you do that, you'll end up creating an incentive for people to only do stuff that looks great for a promotion -- and people who maintain software and don't create flashy new features will end up being under-appreciated. If you don't think a person "earns" a raise then they shouldn't be working in your team. In a great team, everyone "deserves" a raise because teamwork is the result of the entire team. If a person pulls that teamwork down then they shouldn't be in that team.