Thats one way of giving increment it seems.. let one resign if not satisified and then offer increment..Else there may be dissatisfaction among others for more increment to one guy.. Well this is only one possibility..Otherwise the increment offered after resignation can be a late realization of one's contribution.. or it can be just to save some overhead expenses..till one resigns..You know better what u want in life..Usually salaries are based on market rate only not performance based...