Well these engineers weren't savvy enough to figure out that they could make 110K right now. Who's to say they will in two years? Or maybe you just give them a raise to 110K in two years and they'll be happy with that and never figure out they're worth 125K now.
The parent said "if you're having problems filling the position". If you're having problems filling the position because other companies are paying more that's going to come out sooner or later.