If you're going to be their manager, it's in your interest to have their salary outcome have parity with other people doing similar work. Later on, if the employee gets unhappy with their comparative situation, it's much harder to fix a disparity with annual raises than it would have been to do the fair thing to begin with.
If their pay is too low, you have made yourself a persistent problem that will be hard to fix.
Thanks for this. I recently left a pretty damn good job except that I was extremely underpaid. They tried to point out they were trying to fix it with a generous annual raise, which was nice, but no where near enough.
I've been struggling trying to explain the situation to myself but you nailed it.
If you still like the original place, you can always go back after a few years, using your new rate as a negotiating tool.
The other option (while still at the original place) is to get an offer from another company. Then, assuming you have your manager's support, take that to HR and ask for an out-of-cycle increase.
Often by the time it gets this far, people are discontented enough to be at the point of walking away anyway.
If you're going to be their manager, it's in your interest to have their salary outcome have parity with other people doing similar work. Later on, if the employee gets unhappy with their comparative situation, it's much harder to fix a disparity with annual raises than it would have been to do the fair thing to begin with.
If their pay is too low, you have made yourself a persistent problem that will be hard to fix.