The thing is a lot of people value the security or aren't aware of the difference between market and their pay. Let's say this is 80% of people.
If you're corporate HR, you can retain 80% of your top talent without big pay increases and promotions while knowing that you'll lose the top 20%. This may be palatable whereas it wouldn't be if you were only retaining 60%.
I think Google and FB were the first to figure out that you could get the top 5%, that they would make a big difference in your org. You'd have to greatly increase compensation but those individuals are probably contributing and worth more than that.
If you're corporate HR, you can retain 80% of your top talent without big pay increases and promotions while knowing that you'll lose the top 20%. This may be palatable whereas it wouldn't be if you were only retaining 60%.
I think Google and FB were the first to figure out that you could get the top 5%, that they would make a big difference in your org. You'd have to greatly increase compensation but those individuals are probably contributing and worth more than that.