So are COLA raises that don’t match actual inflation. Too many and your experienced staff are forced to get a new job salary bump to get back to the buying power you hired them at.
My job directly interfaces with a client that directly sets budgets adjusted for inflation and I directly pointed this out to my boss and they still ignored local inflation.
Most companies are on cruise control and don't care.
Because they don't need to pay based on inflation they need to pay based on the cost of labor.