[xyzelement]

Correct but not the point. The reason you pay your plumber 1x and not 2x is because someone else can do the same job equally well for you for 1x.

You don't pay 2x untill you are forced to (eg plumber is the only game on town) not because you are so enlightened.

[SR2Z]

I don't sit down and decide "here's how much I'm going to pay the plumber." I call a plumber and get a quote. I can keep going until it feels worth it.

My enlightenment comes from talking to a bunch of plumbers and hearing what they're gonna charge. That's the market rate.

If I hire an employee and they get good at their job and someone else offers them a 40% raise, they'll probably leave. That's a lot of money.

Some companies care about retention, most don't really.