If a company, or speaking more locally, my manager doesn't do that, I'd rather just leave and try somewhere else. Some may view this as childish, picking up and leaving just cause I don't get what I want. I view it as exercising my market power and refusing to be pigeon holed into a system that exists just because that's the way it's always been.
This philosophy certainly benefits from the current job market and this makes me feel more empowered knowing I can just pick up and leave and get a better raise, promotion, new equity round etc.
A good signal for identifying these types of companies where this approach can work IMO is
- Smaller companies
- Ask and look into engineers seeing if there are lots of internal promotions
- Learn what the promotion process is at a company before joining.