How should we bring employee pay up to the levels of the newly hired?

Q: “I’m considering pay raises to compete with the current industry standard. If new hires are starting at a higher rate than what we currently pay, is it a viable solution to raise current employee salaries to that of the newly hired using a formula? Example: A job is advertised at $18 per hour for new hires, and the company will look at raising current employees with no infractions to the advertised rate. Those current employees who have infractions will have a window of opportunity to raise their pay if they stay infraction-free. Do you see any issues with this as a fair and standard way of discerning pay raises for current employees?” - K., Virginia