I remember J quite adamantly turning down a managerial position when it was offered to him, he likes the job that he's doing and hates managing other people XD
Meanwhile I kind of like that this thing sounds well known enough to have a name but not well known enough to keep happening.
With how incentives are given, I doubt changes to accommodate this from not happening would be adapted to pop culture. To get more salary, you need promotion and more responsibility. People want more money for their work but can be resistant to more work/responsibility which may not get them to be good at their role. It's difficult to explain why a low level position gets paid more than the managerial position set above that worker in question so by the wills of tradition, we just promote and see what happens.