Companies with these policies often end up in an uncomfortable position that they start lowering expectations to market. Over time this problem becomes bigger a

Companies with these policies often end up in an uncomfortable position that they start lowering expectations to market. Over time this problem becomes bigger as the company can’t offer competitive wages anymore as the gap with existing employees is too large. A startup that started 1-2% band adjustments in 2016 probably pays half the market rate for the same talent in 2022.