Most competent managers I know realize that under paying your team is another sort of debt that piles up and comes due. Compensation certainly isn't the only thing that matters to your team, but it is almost always an important factor. I certainly always considered it part of my management responsibilities to get proper compensation for my team by making clear to people making compensation decisions the value they brought to table and how expensive in time and money it would be to replace them.
I'm always surprised at how companies can be so nimble in markets for their products but be so poor at working in the market for their personnel. Often times it seems like getting some counter offers is the only way convince them that the market for engineers has changed significantly.
From a company's perspective, just because one person gets a market rate that is higher than the rest of the team, the entire team can't simply be given a raise. While this sort of largesse may work for Google & FB, I doubt it would for those companies that grow in single digit to low teen % per annum.
Also, if the person given this raise is not amongst your top performers and now ends up out earning the rest of team, it ends up affecting overall team morale. Your star performers then start to feel short changed and think they have to leave to get a raise.
I'm always surprised at how companies can be so nimble in markets for their products but be so poor at working in the market for their personnel. Often times it seems like getting some counter offers is the only way convince them that the market for engineers has changed significantly.