PayCompression
Pay compression, also known as salary compression or wage compression, is a phenomenon that occurs when the pay difference between employees in higher-level positions and those in lower-level positions narrows or disappears. This can happen for several reasons. One common cause is an increase in starting salaries for entry-level positions that outpaces the raises given to more experienced employees. This might be due to market forces, labor shortages in certain fields, or legislative changes like minimum wage increases.
Another factor contributing to pay compression is the retention of long-term employees. When organizations struggle to
The effects of pay compression can be detrimental to employee morale and retention. Experienced employees may