That's meant a lot of costly turnover, but Hoover shrugs it off. It is cheaper than giving general raises. That's why professional career coaches like Leslie Prager, founder of the Prager-Bernstein Group and coordinator of the Career Center at New York's New School University, warns clients not to expect big raises from their current employer. If your boss tries to keep you from jumping by making a counteroffer, you're probably wise to ignore it. Demographics also work against many baby boomers who stay loyal.
Most companies say they distribute raise funds by merit.
It's also a good strategy for companies because younger workers are probably showing the biggest increases in productivity, Schieber says. Middle-aged workers, who are already comparatively well paid and productive, find themselves bumping up against the corporate ceiling. That's what happened to Dennis Morris, who spent seven years working in the lab for Watson Pharmaceuticals in Salt Lake City. And there was plenty of competition for management jobs. He called a local headhunter, checked Web sites for job listings, and read the want ads.