Salary Hike Problems?

Is it practically possible to increase the salary of an employee just because of greener pastures though he is talented.(because if an hike is given the other employees too will come up with such issues in future)
and how to handle/control this situation if arises.... please help

Sayasana,
It is prevalent in many organisations, they retain the talented employees by increasing the salary. Pay disparity is prevailing. Yes, such practice may affect the morale of his peers but in the competitive environment we have to adjust with such situations.
Pon