Several months ago, I was hired (from "outside" the company) as a manager of a small team . So was my manager. We noticed that one of the employees seems to be paid a lot higher than the benchmark for the role he has. He does a good job as a junior employee, but has never been promoted. I just think that the previous manager "fell asleep at the wheel" when giving out pay raises.
We believe it is time to ask more out of this employee and to evolve his role to match the salary he is getting. However, the employee believes he should be promoted first and paid more for the additional/higher level responsibilities.
Now, it is not exactly the employee's fault that he got to a point of being overpaid for his current role. So, it is acceptable to ask the employee to step up without getting an increase in pay in this case? Do we have the right to ask the employee to "step down" in pay if he stays in the current role? Is it "fair" to change the "rules of the game" like this?