My observations suggest that this applies far more to lower performing employees than higher performing ones since the barrier to change jobs is lower for top tier talent.
In effect this means that while companies that give paltry pay bumps that don't keep up with the market may successfully hold on to lower performing employees, they'll be continually churning through top performers.
In effect this means that while companies that give paltry pay bumps that don't keep up with the market may successfully hold on to lower performing employees, they'll be continually churning through top performers.