I too work in semiconductor R&D and we don't get raises that come even close to inflation. The only strategy I've seen people use to get a decent raise is to threaten to leave. Busting your ass does nothing. Being the best does little more. I've seen our best and brightest get 1-2% because (unofficially) "it wasn't their turn for a good raise". Sure they get the biggest raise when they get promoted but that almost never happens without them fighting for it. Personally it seems to me that my company knows that many of its scientists who are here on work visas will be pushovers when it comes to raises. That PhD from India or Pakistan isn't going to risk his livelihood and ability to stay in this country for a few extra bucks when he is making far more than he could expect to make back home. Similarly many of the technicians are ex-military or only have associates degrees so they don't want to mess with their golden goose either. The guys with a B.S. or M.S are the only group that causes any issue because they don't like getting paid just 2-3% more than someone without a degree but getting asked to pick up the slack of the fresh out of school PhDs who haven't been fully trained or taken on research projects yet. These senior technicians even sometimes do research themseleves and some of these guys come up with really novel solutions to cutting down the work load. It makes sense that since they are usually asked to do busy work, that they will find the fastest ways to do it. These people are a flight risk because they could go back to industry, school or the manufactures of their expensive ass tools with little difficulty. Coming from r&d they can get pretty decent offers from all three. This has breed a culture where the company simply doesn't give substantial raises unless an employee is going to quit otherwise. I threatened to leave (to go back to school) and then I was told that the company might be promoting me this year or at least giving me a really good raise this year, so I'd better hold off on that decision. Its stupid, because I know a good promotion will barely push me higher than I was when I started working, if you include inflation. It is also unfair because it seems to me that degree'd people with U.S. Nationality seem to have the strongest hand when it comes to negotiating wages. That element unfortunately seems to play a much stronger role (sometimes) than merit or work ethic. Couple that with agreements from competitors to not higher each-other's employees, in an effort to keep wages low, and you get a pretty stagnant market.