Top
image credit: Pexels

Avoiding Pay Compression

June 3, 2019

Via: HR Hero
Category:

Pay compression happens when the pay levels within an organization start to converge, and there’s less and less differentiation for things like years of experience and education levels. This happens far too easily—typically because the pace of raises doesn’t always keep up with the speed of market-level wage increases for new hires.

Before long, new hires are coming in at pay levels closer and closer to (or even exceeding) the levels of employees who have been with the organization much longer and/or have much more experience. This is especially problematic in situations when pay compression exists despite big differences in responsibility among those who are quite close in pay.

Read More on HR Hero