Wage compression can be avoided by granting wage increases solely based on the CPI.

Question

Quizplus · Accepted Answer

Wage compression occurs when there is little difference in pay between employees at different levels or with different levels of experience. Granting wage increases solely based on the CPI (consumer price index) may not consider factors such as individual performance, skills, and experience, which can lead to wage compression. Therefore, it is not a guaranteed solution for avoiding wage compression.

Wage Compression Can Be Avoided by Granting Wage Increases Solely