The article mentions a few reasons, but I believe the most important reason is the fact that they can reduce the average salary they pay by doing this.
A new hire will obviously seek the market average, so there is not much you can do about that. However, existing employees will not renegotiate their salaries every month, so the company will end up paying less than the market average per person. If the company raises everyone's salaries to align with the market average, they will be paying substantially more.
A new hire will obviously seek the market average, so there is not much you can do about that. However, existing employees will not renegotiate their salaries every month, so the company will end up paying less than the market average per person. If the company raises everyone's salaries to align with the market average, they will be paying substantially more.