I think it's the opposite. People realized that they were getting 2-4% raises and would forever be below market compensation so they went through the crappy exp

I think it's the opposite. People realized that they were getting 2-4% raises and would forever be below market compensation so they went through the crappy experience of interviewing to get their compensation back to.market. If you do job x and your employer pays someone 20%-50% more to do the same job, what are your options?