Which term is used to describe the situation where the pay spread between newly hired employees and more qualified job incumbents is small?
A)pay structures
B)pay compression
C)red circle pay rates
D)green circle pay rates

Question

Quizplus · Accepted Answer

Pay compression refers to the situation where the difference between the pay of newly hired employees and existing job incumbents is small. This can occur when the labor market is tight, and employers are forced to offer higher wages to attract new hires, while current employees' wages remain stagnant. This can lead to morale issues and difficulties in retaining experienced employees. Choices A, C, and D are unrelated to this concept.

Which Term Is Used to Describe the Situation Where the Pay