It’s an empirical fact that it’s easier to get a payrise if you’re negotiating a new job than if you’re negotiating within your current job. When I look back over my own career, every time I’ve worked somewhere longer term (over a year), payrises have been a hard struggle. Whenever I’ve switched jobs, my new pay has made all payrises at the previous job irrelevant. These days I make job switching upfront and official: I run my own business and most of my money comes from short contracts. Getting rewarded for new skills or extra work is nowhere near as difficult as before.
I know I’m not the only one to notice this effect, but I’ve never heard anyone explain why things might be this way.