> As an employer, it's hard to know how someone's market value fluctuates. The only way to really know is for the employee to do a job search. There are severa

> As an employer, it's hard to know how someone's market value fluctuates. The only way to really know is for the employee to do a job search. There are several ways to figure out the market rate for a position: 1. Post an opening and see what the salary expectations are of applicants 2. Talk to recruiters and see what similar positions are paying 3. Use your network of people at other companies to find out what similar positions pay 4. Look at salary data for your industry and region I agree you probably won't get a precise answer from any of the above, but it should at least give you an idea which end of the spectrum you fall. You can also talk to the employee and try to get an idea whether they're happy with the position and compensation. My personal preference is for this to happen multiple times per year, instead of just at an annual review.