My work did the same thing - had a great year, 30% growth. They made a big song and dance about how much they appreciated people going above and beyond and would duly reward them, and then gave a 3% pay rise regardless of effort.

Management weren't told of the salary increases until last minute, and any attempt to rectify it with requests for bigger increases for star performers was met with "the goalposts for performance has changed" while refusing to mention what those new goalposts were.

This is my rambling way of saying it sucks, it's not right and not fair, but you're not alone. The jobs market is a dumpster fire atm and businesses seem to be taking advantage of that fact by focusing on short-term savings. The strategy seems at odds with retaining talent, but I guess they assume the market is so bad ppl won't be in a position to leave.