Yes it's fine, just make sure they're telling the truth and not trying to get you to shut up because they're about to quit / they hate you. Increase their comp

Yes it's fine, just make sure they're telling the truth and not trying to get you to shut up because they're about to quit / they hate you. Increase their compensation as their output increases. Be fair, don't penalize them for not fighting to climb the ladder. Check in on their happiness regularly. Ask them very directly about their satisfaction at work. This is the conversation you force, not the topic of "why do you not want to progress." You can be really upfront with them – "you don't seem to have really concrete career goals, but you're a valued member of the team – does this work for you? Confirming that it works for us." This is the easy stuff, spend your time on the bright but overconfident 23 year old who's complaining that they're not an engineering manager yet or the great engineer who's going through a divorce.