Raises of 1% to 2% for years contributed to my decision to take early retirement. Nobody can summon even a shred of loyalty with compensation policies like this. I'm quite certain I was deliberately "encouraged out" because my replacement was assuredly hired for less than 50% of my salary.
Yep... tried that one (only I didn't say it out loud)... six months later got fired. No big deal, though - within two years the management had run the company into the ground and they were all out of jobs :)