A company that is facing the challenge of pay rate compression might want to increase the size of pay increases for merit-worthy employees and redesign its pay structure to increase the spread between hourly and supervisory employees.

Question

Quizplus · Accepted Answer

Increasing the size of pay increases for merit-worthy employees and redesigning the pay structure are both effective strategies to address pay rate compression by increasing the difference in pay between different levels of employees within the company.

A Company That Is Facing the Challenge of Pay Rate