Skipping the yearly bonus pool for individual raises worked better for us
Most teams push for group bonuses to feel fair, but we gave raises based on performance instead. It cut down on complaints and helped us keep our top people without going over budget.
Cutting down on complaints is great, but does it create more competition between team members? That could lead to people not sharing ideas, which slows down the whole group.
Have you seen those posts about how no-complaint policies backfire? They say it can make people competitive instead of cooperative... Kinda fits what you're saying.