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Do you think there is legitimate business strategy to justify lack of raises?

It's always either a buyer or seller's market when it comes to business in my book. A business should constantly seek growth and cost efficiency. Through the process if a company is profitable, they should give raises accordingly. If their competition is paying more, and that threatens your employee retention, then you should offer raises or benefits to your employees comparable to retain them. It's a lot more costly to continually re-hire and train employees in most settings.

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