Except this past year it hasn't. Seen any articles about 'The Great Resignation' lately? The pandemic helped change employee attitudes and they're much more willing to quit for a better deal now (and there's plenty of companies desperate enough to give it to them).
Companies have always (at least the past few decades) been more willing to pay more for a new hire than to increase compensation to keep an existing employee, so now that everyone is short staffed, people are taking advantage of that reality and quitting their jobs for a new one much more frequently and getting the increases they're being denied from their former "stuck in pre-pandemic mindset" companies.
Companies have always (at least the past few decades) been more willing to pay more for a new hire than to increase compensation to keep an existing employee, so now that everyone is short staffed, people are taking advantage of that reality and quitting their jobs for a new one much more frequently and getting the increases they're being denied from their former "stuck in pre-pandemic mindset" companies.