This is actually the reason that I prefer changing jobs instead of asking for a raise.
Asking for a raise puts me in a position where I have to perform extra to be "worthy" of that raise, while it might have been that my initial salary was way lower than my market value.
Why then add the much increased pressure of asking a raise and the uncomfortable conversations that surely does ensue, when you end up in a much better position by simply looking for other offers.
In final, I would actually say that I strongly disagree with your advice, and you're (at least that attitude) the type of team that I would probably leave. Your base assumption is wrong to begin with. The raise doesn't come from the employee having to do extra work, no it comes from them currently being undervalued and their current salary not being indicative of their current value, i.e. the raise is should not entail more worth, but is there to match the current level of worth of the employee.
There is obviously a lot of nuance here. Certainly more than I covered in my 4 sentence comment. Generally with most companies there will be a salary range for most positions. You're right that if that salary range is out of wack with the prevailing market rates the company is unlikely to retain good people (or attract them in the first place).
But assuming the range has been set more or less correctly you're likely to have a salary at least in the ballpark of what's appropriate.
My point was really about pushing your manager to go towards the high end of that range (either for a new job offer or a raise at an existing job. doesn't matter). As long as you've got some ammo in your corner this will generally be possible. But then afterwards I go back to what I said. Live up to it so your manager doesn't end up regretting his decision.
Aren't you going to start under some additional pressure at your new job, to make a good impression and show you were "worthy" of being hired, and at the price you're being paid?
Asking for a raise puts me in a position where I have to perform extra to be "worthy" of that raise, while it might have been that my initial salary was way lower than my market value.
Why then add the much increased pressure of asking a raise and the uncomfortable conversations that surely does ensue, when you end up in a much better position by simply looking for other offers.
In final, I would actually say that I strongly disagree with your advice, and you're (at least that attitude) the type of team that I would probably leave. Your base assumption is wrong to begin with. The raise doesn't come from the employee having to do extra work, no it comes from them currently being undervalued and their current salary not being indicative of their current value, i.e. the raise is should not entail more worth, but is there to match the current level of worth of the employee.