And it goes beyond that. Salary isn't the only compensation you receive. There are also benefits like 401k (often with match), stock grants/options, health care, bonuses, etc. If you just look at my salary, I've averaged a 4% raise each year for the last 5 years. But if you look at my full compensation, it's more like a 50% raise the first year, and a 4% raise each year after that. I've had offers to go to other places, but they often don't include the other forms of compensation. (Or they do, but the stock is worthless, or the health insurance isn't very good, for example.)
