[trinsic2]

Yeah I agree with this. It really depends on the culture of the business. If the employee feels valued, giving raises increases feeling valued.

The problem is our current form of corporate culture. Employees don't feel like they matter, there efforts are a cog in a wheel. If you get a raise in this type culture, it only matters to the bottom line and there is no incentive produce because the employee is already unhappy in the first place.

Change your business culture and these problems will disappear, IMHO.