How Can We Fairly Adjust Salaries for Long-Term Employees in Our Appraisal Process?

As per the demands of work, our organization has hired new employees who are technically strong, have less experience than the current employees, but have negotiated a higher salary than the old employees whose salary is increasing as per the organization's appraisal system.

Now, the old employees feel they are receiving a lower salary. Is there any idea that I can apply in the annual appraisal process that can be linked to the number of years an employee has worked in this organization?

Dear HR colleague,

This problem is created by your own action of not maintaining internal wage parity. You had the option not to hire new employees at a salary higher than existing senior employees who have proven their worth. Now, at the time of their next appraisal, please make corrections in at least deserving cases and maintain a reasonable salary differential between new and senior employees by giving due weightage to seniority and performance.

Regards,
Vinayak Nagarkar
HR Consultant