Jennifer, an account manager in an automobile company, has work experience of 6 years and has become one of the best employees of the company in the 2 years since joining. However, she resigns from her job when she finds out that most of the new employees with only 2 or 3 years of experience in the company are paid the same salary as hers. In the given scenario, Jennifer most likely resigns because of _____.

Question

Quizplus · Accepted Answer

Pay compression occurs when there is only a small difference in pay between employees regardless of their skills, experience, or seniority. Jennifer resigns because new employees with significantly less experience are being paid the same as she is, indicating pay compression.

Jennifer, an Account Manager in an Automobile Company, Has Work