Where's the incentive?
We need to stop calling this "merit" as job performance is irrelevant. We can't even call it a "cost-of-living adjustment." The Social Security Administration announced the COLA increase for 2019 is 2.8%.
Meanwhile, the average "merit" increase for 2019 is ranging 2.7% for average performers, up to 4.7% for top performers with most American workers seeing a raise of around 3%.
What's the solution?
https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/2019-salary-budgets-inch-upward.aspx